PSBs to push co-lending with NBFCs, digital agri financing under Ease 4.0 reform agenda


State-run banks will focus on co-lending with non-banking firms, digital agriculture financing, synergies and technological resilience for 24×7 banking as part of their reforms agenda for this fiscal, Ease 4.0, a senior official aware of the developments told ET.

Launched in January 2018, Enhanced Access and Service Excellence (Ease) is the common reform agenda for all public sector banks.

“This year PSBs will focus to introduce and promote new analytics-based offers to existing retail customers like pre-approved car loans, EMI offers on ecommerce purchases and also for existing MSME customers,” the official said.

Such offers will be based on bank transactions, income tax and GST returns, transactions on e-commerce portals, and other operational data, the person said.

As per the reform agenda, banks will leverage partnerships with third parties, including agritech firms and strive to automate processing and sanction of agricultural loans based on field visit, borrower interaction, and risk assessment in states with digitised land records.

Under the co-lending model with non-banking finance companies, the banks will take 80% exposure, while NBFCs will provide customer service and grievance redressal. “Risk assessment will be done independently, and also for monitoring and loan recovery,” said a bank executive aware of the deliberations.

For prudent banking, banks individually will look to recalibrate triggers and thresholds based on past portfolio performance, experience of efficacy of the triggers, nature and frequency of actions. “There is a need to refine early warning system (EWS) models based on importance of warning signals and generation of alerts based on patterns and correlation in data,” the executive said.

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