IBA: Premier Service Organisation of the Banking Industry
The Indian Banks' Association (IBA) is the premier service organisation of the banking industry in India. It has members from public sector banks, private sector banks, foreign banks having offices in India, co-operative banks, regional rural banks, and all India financial institutions. The IBA recently held its Annual General Meeting in 2018, where it discussed various initiatives to enhance access and service excellence in the banking industry.
One of the key initiatives undertaken by the IBA is the Business Correspondents Registry. This initiative aims to ensure access to financial services and adequate credit where needed by vulnerable groups, such as weaker sections and low-income groups. The registry will help banks identify and register business correspondents, who can act as their agents in rural areas, and provide basic banking services to the unbanked population.
The IBA has also signed the Inter-Creditor Agreement (ICA) for Resolution of Stressed Assets. This agreement was signed by 33 banks and financial institutions and aims to resolve stressed assets in a time-bound manner. The ICA will help in coordinating the activities of various lenders, and ensure a timely resolution of stressed assets, thereby strengthening the banking system.
In terms of the PSB Reforms Agenda, the IBA has engaged the Boston Consulting Group (India) Private Limited as external consultants. The aim is to develop a roadmap for the reforms agenda, which will focus on enhancing access and service excellence in public sector banks. The agenda will also aim to improve the governance and management of public sector banks, and ensure a level playing field with their private sector counterparts.
The IBA has also published the Performance Highlights of Private Banks 2016-17. This publication is based on the figures captured from the Annual Report/Balance Sheets of Private Sector Banks. The report provides insights into the financial performance of private banks, and their contribution to the banking industry in India.
In conclusion, the Indian Banks' Association (IBA) is playing a crucial role in strengthening the banking industry in India. Its initiatives, such as the Business Correspondents Registry and the Inter-Creditor Agreement (ICA), are aimed at enhancing access and service excellence, and resolving stressed assets in a timely manner. The IBA's engagement with external consultants, such as the Boston Consulting Group, is a step towards developing a roadmap for the reforms agenda, and ensuring a level playing field for public sector banks.