The Association of Indian Banks (IBA) is working to make banking easier on the loan side and is also focusing on rapid decision-making amid the COVID-19 crisis, its CEO Sunil Mehta said on Friday.
Member banks are working on digitizing lending products so that human intervention is minimized in the lending process, he said.
âEase of banking is one of IBA’s main goals and bankers are thinking about it. Bankers need to think about faster delivery. Banks are turning this pandemic into an opportunity to digitize their lending products … In 6 months you will find more digital lending products and make banking easier, âhe said.
Quoting the portal “psbloansin59minutes”, he said, this kind of algorithm-based decision-making platform can be extended to the entire loan lifecycle with the aim of reducing the physical interface. .
He further stated that the ease of transaction has already taken place, as it can be done with the click of a button.
âThe bank has transformed over the past 10 years and it will transform further and these improvements are really needed. Bankers are working on it,â he said in a webinar hosted by Assocham.
Providing full support to MSMEs, State Bank of India (SBI) Managing Director Dinesh Kumar Khara said the bank was also very open to demand for loan rehabilitation and restructuring.
Khara also said that certain sectors of the economy like hospitality, travel and tourism would need to be accompanied.
Echoing similar views, Mehta said the government has also asked the RBI to consider a one-off restructuring plan for some areas hit hard by the pandemic.
âThe sectors that really need special attention are aviation, hospitality, travel and tourism etc. These are the sectors that are heavily affected during the pandemic due to the level of occupancy and travel restrictions. Maybe the government offers special packages for these sectors and even the Reserve Bank can come up with special restructuring plans, âMehta said.
Recognizing that demand is one of the main areas of concern, Khara said, the rural space offers some hope as the agro-economy is not too affected.
Various actions taken by the RBI and the government, including â¹The 20.97 lakh crore Aatmanirbhar Bharat Abhiyan package will help fuel the economy’s growth ambition, he added.
This story was posted from an agency feed with no text editing.
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