'Assessment of PSBs under new KPIs to begin this fiscal'

The assessment of public sector banks under the new Key Performance Indicators (KPIs) framework will begin from this fiscal itself, Financial Services Secretary Hasmukh Adhia said today. "The KPIs are going to be operational from the current year only for the performance for 2015-16 of all the banks," Adhia told reporters here at an SBI event. Last week, Adhia had said a new framework of Key Performance Indicators (KPIs) to be measured for performance of PSBs is being put in place, which will boost efficiency in functioning of these banks.

"It is divided into four sections totalling up to 100 marks. The quantum of performance bonus is also proposed to be revised shortly to make it more attractive. We are also considering ESOPs for top management of PSBs," he had said.

The government had last week unveiled a seven-point plan which included Rs 20,000 crore immediate fund infusion, creation of a single holding company and minimising political interference to revive fortunes of state-run banks. The plan named 'Indradhanush' also included setting up of a Bank Board Bureau (BBB) for broad-level appointments and a performance-based monitoring mechanism. The government has also resolved to set up a Bank Investment Committee, which will act as a holding company for shares on behalf of the government.