Day 2 at Bancon 2012

Day 2 at the Mariott Pune, saw BANCON 2012 begin on a more relaxed note. There were two parallel sessions: Unlocking the digital financial services opportunity and Granularity of growth, with both having eminent panelists.

Mr R K Dubey, Exec Director, CBI began on a positive note that despite problems in Indian economy, there still exists immense potential to do wonders. 50% of India’s population is youth with more purchasing power than their predecessors. His insight that financial inclusion should not be restricted to villages is an eye opener; particularly when he stated how 40 lac people in Delhi form the migrant labour class from neighboring states like Bihar, UP and do not know where to save their money. He urged banks to sensitize proactively while doing a needs assessment.

Another eminent panelist explained that granularity has challenges in terms of scale. A manager in charge of a branch generating revenue worth 500 crores and also another branch with a not too impressive amount; the latter is given shoddy treatment. So granularity is operations related. Even bank-by-bank definition of SMEs is different; banks need to identify growth spaces. The concept of how a bank-within-a-bank originated, was discussed. Banks have to willing to invest resources to boost granularity of growth. In ’89-’91 a suggestion was floated in opening branches in Sikandpur for the Gurgaon region; had this recommendation been implemented, the bank would have become a dominant player. Similarly, it was recalled how a farmer felt miffed at what he thought was impersonal treatment, when the manager directed him to an ATM instead of being offered tea or coffee! The farmer hoping for pleasantries and dialogue was waiting for an opportunity to invite the manager, but felt intimated. This necessitated counseling and this counseling (technical/financial) should also be extended to SMEs. An SME rating product has been developed with CRISIL. 

Dr Subir Gokarn, DG, RBI declared in his address: India is a large gold consumer & how this stresses the economy. While gold supply has remained constant, demand has increased tremendously, making the BOP lop-sided. In his thought-provoking analysis, he revealed how new financial instruments can provide gold-like qualities, such as liquidity. ETFs, Gold Pension Plan etc were presented in detail.

Before breaking for lunch, delegates were treated to a feast for the soul with the presence of Shri Sri Sri Ravi Shankar, who took to the dias with a soothing “Om Shanti” chant. In highly calm, reassuring tones

His highly calm tone engulfed the buzzing hall with an aura of tranquility the same way his message stirred everyone to embrace each other with love. Innovation is moving towards something that doesn’t exist; he  incorporated banking jargon: happiness capital, GDH not GDP, (Gross Domestic Happiness); he has developed Know Your Team module and to a specific question from the audience about differences with boss, said change the communication style. He categorically stated a mindblock that has harmed India Inc: Business considered a  bad thing and entrepreneur made to feel guilty. He guided the audience towards a stress-busting exercise and meditation.

Post lunch parallel sessions had the audience thinking on their feet again. Achieving a step change in sales productivity and Defining the next frontier in wholesale banking. The former emphasized how employees are valuable and harnessing their skill sets for better productivity. Training enhances their potential resulting in improved customer relations. Akash Lal, Mckinsey & Co described the evolving behavior of Indian corporate, how banks need to identify pain points. There are niche players in both fund & non-fund based markets. Moderator, Zarine Daruwalla, President, Wholesale Bkg, ICICI asked how Indian banks are ready for rupee depreciation and helping corporates. Mr Rathi, MD, Sudarshan Chemical Industries Ltd, replied mid-sized corporate are not ready; banks should advise not to give complex derivatives.

This was followed by a session, Financial inclusion & payment systems, by RBI DG, Mr H R Khan who spoke about ushering in a cashless society, 906.62 million mobile users and banks not adhering to RBI specified fund structures . The valedictory session by Shri Namo Narain Meena, Hon’ble Union Minister, State for Finance,

Covered customer service as a key factor to banking which will leqad the way ahead in the coming dhe also   keeping with the topic he also empahiseised on the noble and innovative methods used by Indian entrepreneurs