Impact of EASE reforms on the performance of public sector banks

Indian banking was subjected to reforms since 1991 that led to gradual transformation on some dimensions of performance in the course of time, particularly with regard to efficiency, capitalization, technology, governance with equal emphasis on stability. Meantime Global Financial Crisis of 2007 - 2008 led to bank failures in many countries. However, Indian banks escaped from major catastrophic financial damages banks might have suffered. But it could not remain insulated from dampening effect of recession in Indian economy. It adversely impacted Indian economy with a time lag and then onwards it has been undergoing a crisis on account of Stressed Assets. Government has implemented a comprehensive 4Rs strategy of Recognising NPAs transparently, Resolution and recovery, Recapitalisation and Reforms to address this problem. PSBs Whole Time Directors and Senior Executives at PSB Manthan recommended a six-point action plan on Enhanced Access & Service Excellence or EASE. The main objective of the EASE reforms was to improve the performance of PSBs and ensure financial stability among others. The Ease reforms which were launched in January 2018, and the subsequent edition of the program EASE 2.0 built on the foundation laid in EASE 1.0 and furthered the progress on reforms. This paper examined the PSB EASE Reforms journey and its impact on the performance of PSBs and observed it had positive impact.