Indian Banking Vision 2010 - 03

Conclave on Indian Banking Vision 2010

BY SIESCOMS

PART 03

The next module was a panel discussion on Market Forces and Consolidation. Chaired by Mr. Ashvin Parekh, Partner and National Leader - Global Finance Service, Ernst & Young. Mr. Krishnamurthy Vijayan, Chief Executive Officer, J. P. Morgan AMC, India in this module mentioned about the impact of consolidation on the stock prices. The traders and Investors reaction along with the market reaction to the consolidation. He mentioned that the analyst in the industry like consolidation major reason for which being that the stocks would be bought into limelight if consolidation takes place and is likely to increase liquidity and more important is the opportunities that it would bring to both the speculators and the investors. The stocks potential would basically be analyzed on the bases of its Balance Sheets, Branch Networks, and Management post the consolidation.

To proceed, Mr. Venkatachalam, General Secretary, AIBEA, compared the Indian banks size to that of the foreign counterparts and also mentioned that in the future there would exist opportunities for some banks to carve out niche in the market and serve specific segments like the rural segment, in India this can be possible thanks to the huge diversity that the country provides.

Mr. Leo Puri, Managing Director, Warburg Pincus India Pvt. Ltd. spoke about the possibility of the public private cross consolidation can bring about certain implication which would be challenging to handle such as the public sector banks major goal would be to ensure social profit where as that of the private sector bank would be to earn commercial profit in such a situation, it may be difficult and confusing to decide on strategies and bring abount commonality of goals.

Also he brought about an interesting thought that in the past it was said that more the number of banks will be there, more the amount of competition would exist and hence more efficient the banks would become and now a reverse trend is seen where it is said that less the number of banks, more the consolidation and economies of scale and more efficiently the banks can operate.

The last but definitely not the least was the module on Changing Global Regulatory Standards. This module was handled by CA Ved Jain, President, Institute of Chartered Accountants of India and Mr. Prashant Saran, Chief General Manager-in-charge, Reserve Bank of India.

CA Ved Jain spoke about the various types of risk that need to be managed. The Credit Risk, Market Risk and Operations Risk are the risk that needs to be managed. Some of the regulatory framework for the same being BASEL II and Accounting Standards Rule 32. Also, in India, The International Financial Reporting Standard will come into play from 1st April, 2011. So, all banks will have to make sure by then, they comply to these standards for which they might have to look at consolidation as a option.

Mr. Prashant Saran spoke about the various tools for regulation like risk management, incentives, etc, on what the regulation entities want. He also threw light on rule based regulation in comparison to principle based regulations.

As good things come to an end, so this Conclave on Indian Banking Vision 2010 with the vote to thanks which was given by Mr. Ashvin Parekh, Ernst & Young. The wonderful event which made consolidation the way ahead for Indian Banks so much more clearer with a 360 degree view of all stakeholders and implication on each one of them. The event was possible thanks to the Indian Banks’ Association, Principal Sponsor IDBI Bank, Ernst & Young the Knowledge Partner for the event and S.I.E.S. College of Management Studies, the Academic Partner of the Conclave on Indian Banking Vision 2010.

PART 01

PART 02

Courtesy : Manish Punjabi

--
trackback :
my blog
my profile
my microblog

Indian Banking Vision 2010 - 02

Conclave on Indian Banking Vision 2010

BY SIESCOMS

PART 02

Ernst and Young, the Knowledge Partner of the event launched the report which it had prepared on the Indian Banking Sector in association with S.I.E.S. College of Management Studies and Indian Banks’ Association called “Consolidation: way forward.

Mr. Ashvin Parekh, Partner and National Leader-Global Financial Service, Ernst & Young spoke about the report in brief, mentioning the need of consolidation, the drivers, trends and the areas that would require attention. In India, we have a number of Commercial banks both in the private and public sector along with a number of co-operative banks, UCB’s Regional Rural Banks and Foreign Banks. Public banks could have issues related to NPA or Capital requirements, the Private bank may not have deep pockets of the promoters and consolidation would through be needed. The Drivers towards Consolidation being the need for size, the need for minimum net worth and the BASEL II requirements.

Internationally also, a similar trend exists, like in Japan from thirteen banks in 1990’s to just four now. The Areas that would require managing would be those related to Pre-merger, post merger and regulatory. Thus, the way forward according to him would be Consolidation.

After the wonderful presentation by Mr. Ashvin Parekh, went ahead with a tea break and resumed to start off a discussion on Business and Systemic Justification for Consolidation. The panelist of the discussion were Mr. K. S. Harshan, Executive Director, The Federal Reserve Bank Ltd., Mr. Neeraj Swaroop, CEO-India, Standard Chartered Bank, Mr. Alok Misra, Chairman and Managing Director, Oriental Bank of Commerce. The Discussion was chaired by Dr. A. K. Sengupta, Director, S.I.E.S. College of Management Studies. The discussion came forth with the pro and cons of consolidation. The advantages which would come out of it being in terms of Capital, HR and growth and the disadvantages being in terms of consolidation may not change anything for the consumers and also that India being a large and wide country, more number of banks in a way does make sense. It was discussed that the need of the hour may be that of Differentiation by the banks and not consolidation. Also when were consolidation is spoken of in case of the Banking sector of India it is usually referred to as that of Public Sector Banks and not private. So it may be important to note that the same consolidations may make equal sense for the private player and also cross-consolidation may be seen in the future.

The current market scenario was discussed the observation being that the customers are now much more demanding as compared to the past. Also the customers being widespread, scaling up is an option which is necessary to reach out to them and keeping in mind the foreign banks which would in the future be a big threat to the Indian banks, scaling up would make sure they have a healthy playing filed with the foreign competitors.

The Banks in India today seem to be caught in the QoQ syndrome i.e. the Qayamat sey Qayamat Tak syndrome where they keep working to ensure short term goals of good results are visible every quarter without keeping the big picture in mind.

The discussion ended with an extremely interesting question answer session which made every one ponder on the thought that in the sector moved from monopoly to perfect competition and is seen to be moving in the future from perfect competition back to a more monopolistic situation i.e. with only a few big players which would be present after consolidation.

Post the Lunch; the event was addressed specially by Mr. V Leeladhar, Deputy Governor, Reserve Bank of India. The speech was about the Payment System in Indian. He spoke about the past which started off with barter system to coins, paper, bills of exchange, cheques, plastic money and the present internet and mobile gateways. The need in India is a Safe, Secure, Speedy and Sound payment gateway system. The implication of the Payment and Settlements Act, 2007 were then discussed by Mr. V. Leeladhar along with the e-payment initiatives like Electronic Clearing System (ECS), Electronic Fund Transfer (EFT), Real Time Gross Settlement (RTGS), Internet Based Banking and Mobile Banking.

PART 01

PART 03

Courtesy : Manish Punjabi

--
trackback :
my blog
my profile
my microblog

Indian Banking Vision 2010 - 01

Conclave on Indian Banking Vision 2010

BY SIESCOMS

PART 01

It is said that banking sector is the backbone of any economy. The stronger and efficient the banking sector in an economy the easier can business take place, the more attractive the market is for companies and more beneficial it is for the consumers. And in today’s dynamic environment where its cliché to say this but yet true that Change is the only things that is constant, it is essential for the Indian banks to continuously bring about reforms in them to become better and stronger so as to be recognised as world class and to facilitate the robust growth in the economy.

Keeping this need of bringing about reforms in the Indian banks continuously to become better each day, The Indian Banks’ Association organized a conclave on Indian Banking Vision 2010. This conclave was organized in association with S.I.E.S. College of Management Studies which was its Academic Partner, Ernst & Young its Knowledge Partner and IDBI Bank the Principal Sponsor of the event. The event was held in the marvelous ball room of the Hotel Grand Hyatt on the 1st of August, 2008.

The event started off with the inaugural speech by Mr. T S Narayanasami, Chairman IBA & Chairman and Managing Director Bank of India. He gave a brief introduction to the reforms in the past decade how the Indian commercial banks need to be geared up to face the upcoming competition of foreign banks which are far more superior in terms of capital, technology and products. With this he discussed how Consolidation could be used by the Indian banks as a spring board to launch into growth.

The Inaugural session was followed by The Key Note Address by Mr. Venugopal Dhoot, Chairman and Managing Director, Videocon Group. Mr Dhoot threw light on the fact that how the Indian infrastructure is severing as a deterrent to growth. Even though the infrastructure has improved leaps and bounds in the recent past, there still exists immense opportunities for further enhancement. At present the cost of the banks is an issue which if addressed can help the banks, the consumers as well as the businesses. And one way to address this issue is to put emphasis on Internet Banking, ATM and Mobile Banking. Both these concepts have picked up huge following in the foreign countries and have saved huge sums in the costs. In India, these mediums have started picking up pace but more fuel to this fire is required if the banks wish to flourish and be competent enough against the technologically advanced foreign banks.

The Vote of Thanks was offered by Dr. A. K. Sengupta, Director, S.I.E.S. College of Management Studies. Dr. Sengupta expressed gratitude towards all those who had been involved in making the event possible and a success and also mentioned an interesting shift in what the 3C’s for a Bank was in the past as compared to what it is in the present moving towards the future. He mentioned that in the past the 3C’s for the Banks were Character, Capital and Capacity of the customers. In today’s scenario, peeping into the future, the 3C’s that would be important for banks would be Consolidation, Convergence and Capacity Building to ensure success.

PART 02

PART 03



Courtesy : Manish Punjabi

--
trackback :
my blog
my profile
my microblog

My alumni network at SIESCOMS

View my page on SIESCOMS Interactive

--
trackback :
my blog
my profile
my microblog

Abdul Kalam on knowledge and leadership

Highly motivating, his speech on 15th Aug 2008

read more | digg story



--
trackback :
my blog
my profile
my microblog

SOW : Abdul Kalam's Homepage

I am sorry i am late for this week's site of the week. But as it is said everything happens for a reason, so as this.

I was really thinking what should be this week's SOW(site of the week). But i was not getting time either to post it on the blog. I normally post it on Tuesdays (12th AUGUST)

And then came 15 August; India's Independence day. There was a function arranged by SIES society the parent group of our college (SIESCOMS).

Also on this occasion SIES started SEAT an education trust to sponsor students' education. Since our ex president Avul Pakir Jainulabdeen Abdul Kalam strongly believes in education and the power of it on the minds of small childrens, our college really managed to call him to innugurate this trust.

He delivered a wonderful speech on Education Knowledge and Leadership. I will try and get the speech if possible.

It was the most memorable Independence Day of my life. So all my search ended, coincidently was thinking of dedicated SOW related to India/Independence, when Kalam sir announced his own website.

Hence presenting Site of the Week :-> http://www.abdulkalam.com

He even said that, if anybody has any kind of query s/he can mail it to apj@abdulkalam.com

And then goes his slogan: " Please repeat after me I CAN DO IT, WE CAN DO IT, INDIA CAN DO IT."

--
trackback :
my blog
my profile
my microblog

My Article on The Free Press Journal

I Will digitize this article later.
Please review the article

My first Bar Camp

Haaaaaaaaaaaa!!!! at last, i am back to my tech world. Thanks to lots and lots of people, but the most important my MBA course. Which gave me this orientation that tech is my life and which is rightly depicted in my Pseudonym CYBORG.

Always wanted to be techy, but engg curriculum made me to balance it with studies. Ok so what I topped the college, came 20 in university, no big deal. I am still the same. Had a tremendous interest in Coding, but some could not do it "The Nerd Way". No regrets and enough of cribbing.

Finally doing something about Open Source and one more inquisitive thing. But let me tell you it is the entrepreneurship club that helped me to know about something called as BAR CAMP.

Was also not able to do blogging. Missing it much. But somewhere related to blogging when i introduced the blogging culture in my MBA college. Started 4 blogs. 2 are working. here they are
1 - http://siescoms.wordpress.com - Life At SIESCOMS
2 - http://siescomsmedia.blogspot.com - SIESCOMS Interactive
3 - http://innovateindia.wordpress.com/ - IDEA REsearch at SIESCOMS
4 - http://ec100807.wordpress.com/ - Entrepreneurship Club at SIESCOMS


So here i am preparing for my first visit at the bar camp being conducted at KJSIEIT Mumbai on 8th March



See your self : http://www.barcamp.org/BarCampMU3

very very busy

I had promised to blog daily but can not.
very very busy these days.
Fedup of going college, no value addition.
But yes bloggin is goin on some where.

Managed to create blog for our college.
Not able to bring ppl on that.

here are the links:
1 - Life at SIESCOMS : http://siescoms.wordpress.com
2 - SIESCOMS interactive : http://siescomsmedia.blogspot.com

About Web 2.0

About Web 2.0

The first person that proposed the Web 2.0 idea was Tim O'Reilly, the CEO of a computer books publisher-O'Reilly Media. "Web 2.0" is his idea of a conference title, referring to highly interactive social websites, called blogs, like Wretch, MySpace, Secondlife, YouTube, Flickr, del.icio.us, Wikipedia, Kiko, and CalendarHub. These sites are designed to enable strangers of the real world interact online. It allows many consumers to get used to the concept of socially collective cooperation, e.g., people sharing URL link, photos, video, and information in the Internet space.

However, there are many web users unaware of fraud possibilities, and they often engage in risky online behavior and activities. According to the National Cyber Security Alliance statistics, 57% of users who are aware of potential security risks are still disclosing important information to other Internet users. Therefore, these websites are easy targets to social engineering attacks.

There are many such websites that run a risk of triggering a series of malicious codes. These invasions of legitimate websites include tourism, automobile manufacturing, film and music, tax and employment services, and hotels' website. When any of these users enter these websites, their PCs will guide them to another malicious JavaScript IP address, and start a chain of Trojan horses (virus) downloads.

more on siescomsmedia