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|Indian Banks Do Social Banking||Interview with Trishna Guha,
Executive Director, Dena Bank
What is your assessment of the current situation in the banking industry in India?
The Indian banking sector has displayed a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. Economic slowdown likely to impact the demand for credit .Amidst this economic scenario, the key chal¬lenge for the Indian banking system contin¬ues in improving their operational efficiency and implement prudent risk management practices.
The scheduled commercial banks’ (SCBs) overall credit grew at a slower pace @ 8.47% as of Feb 07, 2014 over March 13 as against 10.6% during the same period about a year ago. During the corresponding period, Dena Bank registered credit growth of 7.39% against the previous year growth of 6.09%.
How do you view the Indian Banking sector’s significant progress since nationalization?
The nationalization of commercial banks was a turning point in the Indian banking system. Challenging feature of the pre-nationalization banking policy was the negligible share of agricultural sector in bank credit as well as low share of other non-industrial sectors. After nationalization there was a shift of emphasis from industry to agriculture. The share of agricultural credit in total non-food credit rose sharply from 2 per cent before nationalization to approx. 9 per cent in 2013.
A remarkable expansion in the banking and financial system has been witnessed. The biggest achievement of nationalization was:Where does Indian banking sector stand compared to the international Banking sector?
Indian Banking system is operating and evolving in today’s turbulent economic and financial environment. There is a difference in capital structure, delivery system customer profile and behavior etc. In India branch banking is a way to connect to customer and to serve them directly, i.e. Indian Banks do social banking however, in foreign; there is a cost to customer for visiting branch.
Technology usage is another area that creates difference between global banking sector and Indian banking sector. Indian Banking is yet to incorporate advance technology whereas Internationally, Banking has become totally digital.
Which are thrust areas for Banking Sector in India?
Primary thrust areas covers:What is key issues facing Indian Banking Sector today?
Indian banks have a lot of things going against them currently, from a slowing economy and rising loan defaults to allegations of money laundering.How do you look at the future of Indian banking sector?
What will be the Future strategy of Dena Bank?
Dena Bank aims to cross business mix of Rs. 4 lac Crore by March’17. For achievement of this, strategy is very clear and simple and is stated as under:
What would you advice your customer to be the best way to manage money?
Customers are the most important part of any business, so ability to deliver services the way customers want, plays a pivotal role in growth of the business. Banks work is to manage money of the customer in a very efficient and productive manner, and safe banking is also becomes a part of this.
Various avenues are available for the customer with variation in liquidity, safety and return on investment .Accordingly , customers should park their money based upon their risk taking capacity and after assessing the return on investment. In this connection, Nationalized Banks offer a variety of products that suits the requirement of the customer giving safety of the amount invested with ample liquidity.
What are you doing about improvement of Service of your Dena Bank?
Apart from taking the steps of reaching to the door step of the customer by expanding the network of the branches , bank has made a good advancement in e-banking and to provide customers 24hours services separate, E-lobbies are opened wherein customer can drop in at any time and can do banking on their own.
Dena SMS service wherein information for each and every transaction is sent to the customers. Thus keeping customers well-informed.
For improvement in customer service Dena Bank has started Dena Help Services, it is a SMS based service where customer can register their grievances with the Bank and get solution.How do you see the banking industry in the year 2020?
As it is seen that Banking and economy are correlated, if economy grows the Banking industry also registers growth. Looking at the third quarter indicative figures it is observed that GDP growth is slowed to 4.7%. Major dip is observed in manufacturing sector creating pressure on demand side resulting in lower credit off take compared to previous year; thereby shortfall is seen in the achievement of Priority sector targets.
In this fiscal, damage to kharif crop due to weather conditions led to lower agriculture growth, heavy rain fall over parts of the country in October 2013 caused some damage to standing kharif crop and contributed to a moderation in agriculture growth.
What about recent initiatives of Dena Bank?
To boost our CASA and Retail Term Deposit, Bank have launched Quality CASA Campaign which primarily focused on mobilizing high value CASA deposit.
As regards to Retail Term Deposit, special scheme of DENA 444 which offers higher rate of interest of 9.15% p.a. for all retail term deposit is launched primarily to attract retail customers.
Further, we have modified our premium savings and current Deposit Product by lowering quarterly Average balance and passing the benefit of 100% service charge waiver to the customer, this will help our branches to garner CASA Deposit, which is very essential in the era of shrinking NIMs.
On Credit front vehicle loan carnival was launched from November’13 till January’14, to give special thrust on priority sector. The campaign focused mainly on Agriculture vehicles, Tractors etc.
Any Comments on Government policy?
No comments are offered.
Have you any observation on any other issue?
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