THE CONCLUDING SESSIONS OF BANCON 2010 HOSTED BY CENTRAL BANK OF INDIA

BANCON 2010 hosted by Central Bank of India, after successfully completing all sessions on 3^rd December continued with same zeal on 4^th December 2010 with 6 sessions.

First session was on the topic ‘Infrastructure Financing’ moderated by Shri S.Vishvanathan, MD & CEO, SBI Capital Markets Ltd. and the panellists were Shri Navin Tahilyani, Partner, McKinsey & Company, Shri Y.M.Deosthalee, CFO and Whole Time Director, L&T Ltd., Shri Abhay Kumar Rangnekar, MD & HEAD – Project Finance, South Asia, Standard Chartered Bank, Shri S K Goel, Chairman, IIFCL, Shri Rajiv K Bakshi, Executive Director, Bank of Baroda and Shri Srivatsa, IAS, PhD Scholar at IIT Madras & visiting Prof. IIM Bangalore.

Shri Navin Tahilyani, Partner, McKinsey & Co. emphasised that India will be one of the largest destination in the world for infrastructure finances spend and Infrastructure spending will be a large opportunity in wholesale financial services but players will have to go beyond lending to make profitable terms.  India has highest household corporate savings rate.

Shri Y.M. Deosthalee, CFO and Whole Time Director, L&T Ltd. said that Power projects finances is a very serious issue.  Most important infrastructure like coal, railway, water, roads etc.  need to have adequate projects. Arrangements are required for power sector. We need to award projects in time. It is important that projects are supported so that finance can reach the projects. Private sector is eager to participate.  We need to work on that.

 

Shri Srivatsa Krishna, IAS, PhD Scholar at IIT Madras & Visiting Prof. IIM Bangalore said that there is absence of project pipeline in India.  Hence it required that proper coordination is put in place to have the growth.

Shri Abhay Rangnekar said attempts are on but they are far & flung between. Banks are only entities ready to assure project risks.    Take these banks loans out of books to market.

Shri S K Goel, Chairman, IIFC said that without infrastructure there is no future of India.  Projects may come but money is required till now.  Of 80% of the money came from commercial finances.

After briefly elaborating on the main topic there was quick question – answer session between the panellists and the delegates.

Second Session was on the topic  ‘Next Gen Consumer Models’ moderated by Shri M V Nair, CMD, Union Bank of India presented by Shri Renny Thomas, Partner, McKinsey & Co and panelists were Shri Rajiv K. Bakshi, ED, Bank of Baroda, Shri R.K. Dubey, ED, Central Bank of India , Shri Saurabh Dhoot, Director, Videocon Industries Ltd. Dr. Paritosh Basu, Group Controller, Essar Group.

Shri Rajiv Bakshi said, to cater to the needs of Gen Y customers, Banks need to upgrade technology and render services more through alternate delivery channels.

Shri M V Nair said, Bank’s customer base of 350 million is expected to double in a decade.  Mr Bakshi said Management’s mission statement should be customer centric and all actions should be focused around that.

To outperform, PSU Banks need to focus on attitudinal training for frontline staff as  Shri R K Dubey, ED, Central Bank of India said, Gen Y customers are expected to be very demanding, impatient, open to borrowing, less loyal to Banks. Shri Dhoot said Gen Y’s CRM envisaged to be through video conferencing.  Transactions through Remote Deposit Capture at ATMs.

Dr.Basu said Right to make mistakes is the need to make innovation. Look and feel of the sites of the Bank is important.  Shri Dhoot of Videocon said,  speed, convenience, personalisation, relationship, communication is all important. Technology is important critical factor. All are required by the gen-next.   Banks should make use of social networking channels such as facebook etc. for better communication to the next -gen.

Shri Dubey, ED, Central Bank of India said Gen Y is likely to be techno-savvy, demanding in quick facility of services, impatient, open to borrowing, buy first – pay later. We need models of PR Skills.  They prefer friendly module designs.

Session two ended with question-answer session amongst panellists and delegates.

In the afternoon session Dr (Prof.) Vinayshil Gautam spoke on topic “Performance as a conscious choice : When a Bank reinvests itself”.   He said there will be no growth unless banks are well-led.  He highlighted the performance of Central Bank of India. On road ahead he said, Bank should recruit young and qualified staff in their 20s and not in 50s and should have proper training process and deployment to make branch as profit centres.  We have to look at delivery mechanisms. Shri P.V.Raveendran, General Manager, Central Bank of India gave vote of thanks to Dr. (Prof.) Vinayshil Gautam.

Thereafter there was a session on “Scaling for Growth : Building New Operating Models” moderated by Shri M.D.Mallya, Deputy Chairman, IBA & CMD, Bank of Baroda presented by Shri Ranjit Tinaikar, Partner, McKinsey & Co. Panelists were Shri Alok Nigam, Joint Secretary (BO), Ministry of Finance, Shri A.Rajan, Country Head – Operations, HDFC Bank Ltd., Shri Rajiv Sabharwal, ED, ICICI Bank, Prof. H.Krishnamurthy, Principal Research Scientist, IISC, Bangalore, Mr. Lazero Campos, CEO, SWIFT.   Mr. M.D.Mallya said the Banks would need innovative technologies to improve service delivery technology. 

Shri Ranjit Tinaikar, Partner, McKinsey & Co. discussed four major barriers viz. Operating architecture, organizational structure, talent and leadership in organization. There is no difference between performance of centralised and decentralised banks. There is need to change mind set for technology. 

Prof. H.Krishnamurthy,  Principal Research Scientist spoke on two topics viz. scalability and robustness of maturity.   He also said business process re-engineering is important.

Thereafter, Shri Alok Nigam, Joint Secretary (BO), MOF said Khandelwal Committee will be in operation soon and said that Financial Inclusion becomes a high priority subject.

Shri Rajiv Sabharwal, ED, ICICI Bank said savings revolves around talent and leadership, impact of leadership cannot be ignored.  How the customer is changing we must see. 

Shri Lazaro Campos, CEO, SWIFT said most leaders wants career and development and not the money.

 

Thereafter the session continued with Shri Anand Sinha, ED, RBI, who spoke about Systemic Risk and Microprudential Policies – Emerging Paradigm.

  

Shri S Sridhar, CMD, Central Bank of India summed up the BANCON 2010 highlighting 1. What is Systemic Risk, 2. How does Systemic Risk build up, 3. Enhancing regulatory framework to address systemic risk, 4. Review of Indian experience in addressing systemic risk, 5. Institutional framework of systemic regulation 6. Open Issues & challenges.   CMD thanked to all guests, panellists and delegates for the success of BANCON.   CMD said Outperforming is actually an Imperative.  Ideate  (to capture new markets) – youth, infrastructure, Financial inclusion, Innovate – IT, Consumer insight, risk management, Inspire (to attract, grow).

Closing remarks were given by Shri O.P.Bhatt, Chairman, IBA and Chairman, SBI who welcomed Dr. C.Rangarajan, Chairman, Economic Advisory Council to the Prime Minister for Valedictory Address.

Dr. C.Rangarajan said that the financial sector plays a major role in the mobilization and allocation of savings.  He shared his views on – liability-asset transformation, size transformation, maturity transformation, risk transformation.   He spoke on capital adequacy ration, Asset quality and NPA, emergence of titans, financial inclusion etc. At the conclusion, he expressed that financial innovations and regulations must go hand in hand in order to ensure growth with stability in real and financial sectors.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release_bancon.doc