Government Urges State-Run Banks to Enhance Expertise of Top Executives Amidst Surging Profits

In a bid to fortify the capabilities of state-run banks, the Indian government has instructed public sector banks (PSBs) to focus on the capacity building of their key executives and specialized senior officials. The directive emphasizes strengthening expertise in crucial areas such as risk management, digital infrastructure, and cybersecurity. Government sources reveal that the move aims to equip the top leadership of PSBs to navigate rapidly evolving market dynamics and technological advancements effectively.

The call for enhanced training comes on the heels of a successful two-year financial turnaround for PSBs, marked by a significant reduction in bad loans. In the fiscal year 2022-23, PSBs collectively achieved a record net profit of approximately ₹1.05 lakh crore, nearly tripling the figure from 2013-14. The government has been actively encouraging banks to review and adopt best practices to combat issues like fraud and cybersecurity risks.

To implement the directive, banks will compile a list of officials eligible for specialized training programs based on experience and work profiles. The Institute of Chartered Accountants of India is expected to play a role in conducting training sessions, particularly for chief financial officers. Additionally, collaboration with the Indian Banks’ Association (IBA) is envisioned to explore partnerships with external entities for further training initiatives.

This proactive approach aligns with the government’s recent emphasis on reinforcing financial cybersecurity systems and combating digital payment fraud, reflecting a commitment to staying ahead of emerging challenges in the banking sector.