PSBs kickstart the overseas operation

Publice Sector Banks started their overseas operations’ review by identifying 41 banks for “rationalisation” as part of the larger reform process.  The process could involve consolidation of operations, trimming of staff strength, exiting from noon-core and non-profit activities or closing unviable offices. “Many banks entered the overseas markets. This activity has to be looked into. Banks have started the process already and about 41 operations they have decided to rationalise,” said Financial Services Secretary Rajiv Kumar.

“It is not everybody does everything. It is better if they focus on their core competencies and build on that. They should rather aspire for leadership in their identified market segments as per core competence rather than playing second fiddle,” he said.

In the near future, each bank would be adopting a board approved policy as per its core strength and outsource the non-core activity.