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BANKING
SCENARIO
Indian
Banking System: The Forward March
- - Katuri Nageswara Rao
The
performance of banks in India has been very impressive. PSBs
are not far behind in the race. With regard to performance
indices like profitability, NPAs, productivity, capital base
etc., banks have been generally showing improved results.
The challenges for the future are consolidation and corporate
governance.
© 2005 IUP. All Rights Reserved
LIQUIDITY
MANAGEMENT
Falling
Dollar: A Risk for Emerging Markets
- - Yash Paul Pahuja
The
US government has been running huge fiscal deficit and capital
account deficit. These are financed by inflows from the rest
of the world especially from Asian countries in the form of
forex reserves in dollars. But the US deficit is unsustainable
and the dollar could rapidly lose its value causing major
imbalance in the world economies.
© 2005 IUP. All Rights Reserved
OUTSOURCING
Outsourcing
in Banks
- - Sanjeev Shukla
Outsourcing
the core or non-core activities is a strategic decision for
banks, as it can affect the quality and cost of services and
above all the bottomline of a bank. The maintenance of information
technology emerges as a major activity to outsource the world
over. There are e-business suites on demand offering a complete
and cost- effective package for administering, managing and
maintaining information technology.
© 2005 IUP. All Rights Reserved
PRODUCTS
Smart
Card: A Smart Way to Transact
- - Pramod Gupta
Due
to secure nature of transaction with smart card, the demand
for it is rising all around especially among banks in India.
Smart card has multifunction applications. It can be used
as debit card, credit card, for railway reservation, identity
purpose etc. Major challenge for banks in the new environment
is to develop a good rapport with almost all sectors of the
economy, to market the cards.
© 2005 IUP. All Rights Reserved
PRODUCTS
Retail
Banking in India: The Key Growth Driver
- - Manoranjan Sharma
Retail
banking is gaining focus in India due to changing landscape
of competition, regulatory environment, innovative technology
etc. While NPAs in this sector are under control, rising interest
rates could prove hazardous. Rising number of middle income
families in India and GDP growth rate will boost the retail
lending in the near future. To achieve the targets, banks
should stress on expansion and diversification of retail products
with thrust on micro planning and effective strategy formulation
and execution etc.
© 2005 IUP. All Rights Reserved
PRODUCTS
Bancassurance:
Growth Opportunities for Banks
- - Anu Anna Thomas
Deregulation
of the insurance sector offers a lot of opportunities for
banks to strengthen their fee based income, return on assets
and profitability. In some countries of Europe, bancassurance
is a great success, where up to 72% of policies are sold by
banks. In India, gigantic branch network, strong client data
base, the faith of customers on banks etc are some of the
factors which could make the bancassurance a success.
© 2005 IUP. All Rights Reserved
HUMAN
RESOURCE MANAGEMENT
HR
Audit in Commercial Banks
- - Dilip Dasgupta
Personalized
customer services of a very high order can be offered, on
a consistent basis, if employees are properly trained, have
high motivation levels, and act as members of the organization.
This is possible only if the bank implements effective, fair
and transparent HR policies. HR audit helps in finding out
the actual state of affairs, and guides the management in
introducing desirable changes.
© 2005 IUP. All Rights Reserved
CORPORATE
GOVERNANCE
Corporate
Governance: Towards Best Practices
- - Ram Sangapure
Banks
accept colossal amounts of uncollateralized funds from the
public in fiduciary capacity. So, their quality of governance
should be fit and proper. Besides the RBI, Basel also has
proposed some strategies and techniques for best governance
practices in banks. While banks' governance practices depend
largely on market discipline and regulatory environment, there
is a need to carefully address issues like transparency, ethics
and values in corporate governance, ownership and control.
© 2005 IUP. All Rights Reserved
STRATEGY
Indian
Banking: Opportunities and Challenges
- - R Viswanathan
The
ratio of bank assets to GDP of Indian banks is far less than
most of the developed and developing countries. So, there
is great scope for credit expansion. There are small banks
with lower asset base which can face survival problems due
to rising competition and economic cycle shocks. Banks will
continue to be the major source of funds for the industry.
© 2005 IUP. All Rights Reserved
STRATEGY
Lean
Concepts for Banks: Enabling Customer Delight
- - A Lakshminarasimha and S Murali
The
banking operations across the country appear as a maze to
people due to their complexities. Banks have taken to brand
pushing and marketing strategies to overcome these issues.
However, these have a limited leverage. The most important
aspect would be to map out the value stream of the target
customer. This will ensure a sustained competitive advantage.
The article explores the current scene in Indian Banking with
the objective of strongly suggesting the use of Lean Concepts
in the Banking sector.
© 2005 IUP. All Rights Reserved.
STRATEGY
Banking...
a Serious Business: Need for self-introspection in the Indian
case
- - Rabi N Mishra
Banking
has changed a lot from previous days' traditional banking.
Today, banks are fast accepting cutting-edge technology making
the loan portfolio a dynamic one, which reduces the risk and
produces higher profits adopting proactive business strategies.
There is need for robust regulatory/supervisory regime, which
enables the banks to stand tall even in the time of crisis.
© 2005 IUP. All Rights Reserved
M&AS
Inorganic
Dynamics in Indian Banking: Compulsions
- - Ajaya Kumar Mohanty
Changing
ideology of the bankers might have a positive impact on the
economy. New dynamics like retail lending, innovative technology
etc., are forcing the banks to consolidate and become universal.
The gargantuan size will benefit only if it brings various
synergies. There is also need for good skill to handle the
complexities and the conducive environment in the market.
© 2005 IUP. All Rights Reserved
TECHNOLOGY
Fishing
the "Phishing" in Internet Banking
- - Amit Gupta and N Rajendran
Growing
use of Internet banking is helping the banks to reduce cost,
be competitive and profitable. But increasing web based frauds
like Phishing could discourage the customers from Internet
banking. Banks should take preventive measures like educating
the customers, logging reports, protecting privacy, etc.,
besides adopting the preventive strategies suggested by Anti-Phishing
Working group before it is too late.
© 2005 IUP. All Rights Reserved
REGULATION
Financial
Intelligence Unit - India
- - S P Dhal
Financial
Intelligence Units (FIUs) exist in many developed and developing
countries. India will have one very shortly. The purpose of
an FIU is to prevent terrorist financing and any other illicit
use of money. It is the duty of the banks and financial institutions
to report any suspicious transactions under KYC (know your
customers) norms. The Institution or individual, who reports
the suspicious transaction is not liable to any civil proceedings,
however, they will be liable to pay a fine if they don't report
suspicious transactions.
© 2005 IUP. All Rights Reserved
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