next phase of transformation in banks
TRANSCRIPT
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Next phase of transformation in banks
1. Shridhar Agarwal2. Nirbhay Bade5. Vinayak Bhutada9. Aashay Chitre11. Snehal Dalvi13. Swapnil Deshmukh
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Financial Inclusion
Swabhimaan program Jan-Dhan yojana Direct benefit transfer-JAM trinity, PAHAL Payment banks 100% FDI in white label ATM
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Dr. Nachiket Mor committee
To re-engineer Indian banking architecture Principle licenses to 11 payment banks Principle licenses to 10 Small finance banks Liberalized branch licensing policy ‘Indradhanush’ framework
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Performance of banks
• Indicates better quality performance of PvSB compared to PSB
CASA CD Ratio Non SLR investment
Investment to deposit
ratio
0102030405060708090
PSB vs PvSB
PSB PvSB
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Ratios impacting market valuation
ROA
ROE
Operat
ing pr
ofit to
Assets r
atio
0
4
8
12
16
PSB vs PvSB
PSB PvSB
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Reasons for differentiated performance
Systematic control on level of performance of human capital PSB- socio economic development Stress on asset quality & consequent pressure on capital adequacy are
concern for PSB For PSB reforms needed in performance management system: Style of people governance Decision support system Top down management hierarchy Better leadership orientation
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Challenges
Entry of new financial intermediaries Diminishing overall profitability Asset quality (Kingfisher) High attrition rate Inadequate talent management system Implementation of Basel –III standard (Capital Adequacy of bank) Prevention of fraud (Bhushan Steel case)
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Indradhanush Seven strategic initiatives:1. Appointments of MD & CEOs in PSBs 2. Bank Board Bureau3. Capitalization of PSBs4. De-stressing PSBs5. Empowerment6. Frame of accountability7. Governance reforms
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Emerging Scope for business Digital India Swatch Bharat Make in India Housing for all Gold monetization scheme Direct benefit transfer Jan Suraksha yojana
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Thank You.