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C
O N T E N T S
EDITORIAL
Down
but not out
The poor offtake of retail loans has pulled down
credit growth
Red
alert
After a sharp reduction in the last three years,
NPAs are creeping back into banks’ balance sheets
Making
the elephant dance
Interview with SBI Chairman O P Bhatt on his efforts
at re-energising the bank
Round
Table
Seven top bankers discuss “2009: Are banks in
India ready for it?”
Dial
‘R’ for restraint
Cases of coercion and violence are forcing banks
to soften their approach towards debt recovery
Overcoming
obstacles
RBI has softened its stand on co-operative banks,
but the guidelines are still strict
Database
All the data you wanted on banks
Banking
Annual (HOME)
Banking
Annual 2006
Banking
Annual 2005
HOME
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RAVIMOHAN:
I am also impressed with what Bhatt has done. I think he is
really taking institutional-changing initiatives but perhaps
the effect of that will come in the future.
SINGHVI:
I flagged SBI only for the reason that let us not be guided
by what I call the American CEO syndrome of ‘I live only
by the quarter’. Here it should not happen that I live
by 12 months. If in 12 months you have done enough to enjoy
the fruits, and the bank benefits even afer your retire, then
that’s the best thing.
KADLE:
Talking about SBI’s responsiveness, there is this Corus
financing that they did... Bhatt has gone on record to say
he just took 5 or 10 minutes to decide. It is true... it may
not be 5 or 10 minutes, they decided within 24 hours. SBI
is now the second largest credit card issuer. You may give
credit to GE...more in terms of processes.
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PRAVIN
KADLE
Managing Director, Tata Capital
If SBI is going to create the kind of impact it has promised,
I would give it a marginal lead over Citibank
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SINGHVI:
I think SBI is a contender.
RAVIMOHAN:
Why not HDFC Bank?
SINGHVI:
Let’s look at HDFC Bank in two ways – the disadvantages
that they have in not being able to participate in a very large
piece of action which has taken place in the banking sector –
it’s home loans. They were completely isolated because of the
parent. So that has been a huge impediment for its balance sheet
to grow and becoming more profitable than they have been.
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If
you look at the growth of ICICI Bank in the last three or
five years, it was largely on account of home loans. They
overtook even HDFC in 2005 itself. Today, when you look at
the size of HDFC Bank , it is at least Rs 20,000 crore less
on account of not being able to participate in home loans.
In that situation, the bank has done remarkably well in the
last two to three years.
RAVIMOHAN:
I was actually looking at all banks from four constituents
– shareholders, customers, employees and the society
(community or the market) . The bank that delivered maximum
value to all four of them in the year of our contention was
HDFC Bank. You talked of SBI, they are also changing the paradigm
of banking itself.
PAREKH:
My evaluation suggested, last year HDFC Bank lost out to three
other banks – Axis Bank, ICICI Bank and SBI.
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R
RAVIMOHAN
managing director and region head, South Asia,
Standard & Poor
SBI has the ability to make a difference to the Indian banking
system
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KADLE:
My observation is when somebody innovates, HDFC Bank then improves
upon it. That’s what we have seen many times. HDFC actually
does a better job than the original innovator.
RAVIMOHAN:
Whether it is in terms of risk parameters, capital adequacy and
NPL, HDFC Bank is distinctly better than other banks.
KADLE:
Ravi’s point about customer satisfaction is good. We did a
survey across locations, now that we are also getting into the same
business. When it came to customer satisfaction, everybody said
HDFC Bank.
Business
Standard •
December 2007
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