Discuss how the 4Rs strategy and EASE Reforms Agenda have reshaped the Indian banking sector. What challenges remain?

The Asset Quality Review of 2015 exposed a hidden stress mountain — gross NPAs of PSBs peaked near 15% by March 2018. The Government's 4Rs strategy and EASE Agenda have since restructured public banks into a record ₹1.98 lakh crore net profit in FY 2025–26 [1].

4Rs — cleaning the balance sheet

• Recognition: transparent AQR reclassified stressed loans and forced full provisioning [2].
• Resolution: the IBC, 2016 with SARFAESI enabled time-bound recovery through NCLT [2].
• Recapitalisation: over ₹3.12 lakh crore infused, restoring lending capacity [2].
• Result: Gross NPA fell to 1.93%, Net NPA to 0.39% (FY26) — historic lows [1].

EASE Reforms — governance and efficiency

• EASE 1.0 to EASE 8.0 (EASERise) institutionalised tech-driven, analytics-led, HR-reformed banking [3].
• Consolidation cut PSBs from 27 to 12, and all banks exited RBI's PCA framework [4].
• Healthier books fuel Retail/Agri/MSME credit — advances grew 15.7% [1].

Challenges remaining

• Post-merger credit concentration and regional under-banking.
• Limited board autonomy; dual pull of GoI ownership and RBI regulation.
• Rising unsecured retail lending and cyber-fraud exposure.
• Unresolved privatisation and sustained capital-raising debate.

The 4Rs and EASE together mark a genuine recognition-to-resurgence journey. Sustaining it demands professionalised boards, a prudent risk culture and deeper financial inclusion — aligning resilient PSBs with SDG-8's inclusive-growth mandate.