Centre Turns Focus On Skills Of The Key Executives Of State-Run Banks

NEW DELHI: The Centre has asked state-run banks to focus on the capacity building of their key executives and specialised senior officials, including chief technology officers and chief revenue officers.

It is keen that the top brass of public sector banks (PSBs) is geared up to handle fast-changing market dynamics and technological outgrowth, said people aware of the matter. “We want them to build strength in areas that require in-depth knowledge, such as risk management, digital infrastructure and cybersecurity,” said a government official, who did not wish to be identified.

In the past two financial years, PSBs have made a turnaround, backed by a decrease in bad loans. In 2022-23, PSBs earned a record aggregate net profit of about ₹ 1.05 lakh crore, almost triple the net profit earned in 2013-14. The government has been pushing banks to review their systems and adopt best practices to tackle issues such as fraud and cybersecurity risks. It has asked chief executives of banks to monitor large-value bank fraud cases and suggested that training sessions may be organised for chief vigilance officers or officials involved in credit decisions to avoid common lapses that lead to investigation.

Last month, the government asked banks to strengthen their systems and processes for financial cybersecurity and rein in increasing digital payments fraud.

Banks will now draw up a list of officials who, based on their experience and work profile, will be shortlisted for specialised training programmes, said the people cited earlier. A senior bank executive said banks may approach the Institute of Chartered Accountants of India to conduct training sessions and banking sector-specific short-duration programmes for their chief financial officers. “Similar specialised programmes for senior executives across other verticals will be worked out, including cyber risks and digital lending,” he said.

Another bank executive said PSBs will also work with the Indian Banks’ Association (IBA) to explore collaboration with other entities. “We will reach out to them about arranging training programmes,” he said. Earlier this year, the IBA organised sessions with the Centre for Development of Advanced Computing, under the electronics and information technology ministry, on data security concerns and compliance with regulatory requirements.

Source: The Economic Times

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