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COVER
STORY
Indian
Banking Progress through Financial Stability - - Katuri Nageswara Rao
The
banking sector has been progressing, thanks to a growing economy
and many stable macroeconomic fundamentals. Financial stability
is a precondition for continuous growth in the banking sector.The
RBI has been, for sometime now, concentrating on the question
of creating financial stability. Here, while the RBI can be
entrusted with the task of providing suitable monetary policy
and regulatory framework for banks, it is the fiscal policy
of the government that significantly contributes to financial
stability.
© 2005 IUP. All Rights Reserved
STRATEGY
Branding
and Retail Finance - Prospects and Pitfalls - - Sridhar Chary
Retail
portfolios of banks are growing by leaps and bounds, but the
tie-up of banks with dealers and their promotion through call
centers is unfortunately not giving due emphasis to customer
care, thus, damaging the image of the banks. There is a need
for exploring plausible routes like brand building across
product categories, takeover from the dealer, reverse the
call center focus, etc. Strong branding of products not only
provides a competitive edge, but also improves the long-term
relationship with customers.
© 2005 IUP. All Rights Reserved
RISK
MANAGEMENT
Credit
Risk Modeling After Basel II - - Balvinder Sangha, Anne Kerttula
Banks
use credit-rating models in underwriting and pricing loans,
managing portfolios, and estimating loan loss reserves and
capital, among other purposes. While such models are common
in both corporate and retail lending, there are differences
in how they are developed and used. The advent of Basel II
will bring about some convergence in how credit risk is evaluated
in retail and corporate lending.
© 2005 IUP. All Rights Reserved
SCENARIO
Indian
Banking in the Next Decade - - BNV Parthasarathi
Indian
banking has been evolving ever since the reforms in 1991.
Banks are realizing the importance of new technology and convenience
banking. Customer satisfaction is at the top of their agenda.
Due to intense competition, the survival of smaller and non-competitive
banks is at risk. Liberalized norms for entry of foreign banks
could exacerbate the situation. Many PSBs are seeking the
merger route to strengthen their positions. The next decade
will be challenging for banks in terms of outsourcing, recruiting
staff with specialized skills and maintaining a high level
of relationship with customers.
© 2005 IUP. All Rights Reserved
SCENARIO
Need
for Radical Change in Attitude and Strategy in Indian Banking - - SN Ghosal
Indian
banking needs strategic and conceptual changes due to radical
changes happening in the world like revolution in information
technology, steady growth in expertise, gradual open and transparent
policy adopted by regulators of monetary market and globalization
and consequent competition.
© 2005 IUP. All Rights Reserved
SCENARIO
The
Microfinance Sector in India Experiences, Options and Future - - Nidhi Mulik
Self
Help Groups (SHGs) are major sources of finance for the poor.
These SHGs are refinanced by banks or institutions like NABARD,
SIDBI, etc. But these days SHGs are also financing micro activities
of the economy as they are transforming themselves into Microfinance
Organizations (MFOs). This article studies five issues: Size,
diversity, sustainability, focus and taxation, which trigger
the transformation of SHGs into MFOs.
© 2005 IUP. All Rights Reserved
TECHNOLOGY
Implementation
Issues in CRM - A Study in the Indian Banking Sector - - Ekta Rastogi
This
article examines the major issues in Customer Relationship
Management (CRM) implementation in the Indian business scenario.
In order to gain an insight into the perception prevailing
among CRM practitioners, a questionnaire survey was conducted
in select Indian banks which are now implementing CRM. The
study revealed that CRM is gradually picking up and is definitely
considered as a viable proposition by banks in improving services
to their customers.
© 2005 IUP. All Rights Reserved
M&AS
Mergers
in Indian Banking - - S Bhaskaran
The
recent talks of a merger between Bank of Baroda and Dena Bank
have heated up the debate on M&As (Mergers and Acquisitions)
among the public sector banks. It is expected that after allowing
74% FDI in the private sector banks, in the post-WTO regime,
more M&As will take place. The RBI has already issued guidelines
for implementing Basel II norms, due for implementation in
2006, in some banks. This will also ignite M&As among Indian
Banks.
© 2005 IUP. All Rights Reserved
MARKETING
Marketing
Myopia - Retail Banking and Indian Banks - - Reena Ray
Nowadays
banks, especially the public sector banks are coming out with
new products and services at a regular pace. The problem is
that while preparing a new product or service they are not
taking into account the customers' requirements and timing
to launch the product/service. It is high time that they prepare
strategies which suit customers and delivery channels.
© 2005 IUP. All Rights Reserved
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