Tamal Bandyopadhyay is one of the most respected business journalists in India. His weekly column, Banker’s Trust, in India’s second largest read financial daily Mint, is widely read for its deep insights into the world of finance and its unerring ability to anticipate major policy moves. TAPMI students were privileged to have him among themselves during the ongoing Annual Finance Conclave- Finomenal 2015, where he delivered a session on the topic- Evaluation of Indian Banking Sector and the changing landscape.
He discussed about the intricacies of the various phases that the banking Industry saw in India. Banking is the most regulated industry in India as it deals in public money. A bank failure can lead to a big systemic failure for the country. He took the students through the story of how things started and took shape to make banking in India a lucrative sector.
Post liberalisation (in the early 1990s) when government of India allowed private entities to hold on to banks, a lot of changes took shape in the industry. He shed light on the transition of banking sector from being a Seller’s market to a customer’s market. The sector has seen dramatic changes in the skillsets required by the sector from being defined and clerical to more technology equipped, customer oriented and innovative ones. This transition was seen due to the evolution of the banks from being driven to impress the government to becoming customer oriented in the present scenario.
At present, with a lot of RBI and other regulatory authorities coming up with many guidelines in favour of promoting growth of banking sector, many public sector banks have become product oriented. They are chasing customers by coming up with lucrative products to make things easier for their customers like- home loans, car loans, educational loans etc. Quality of assets changed and is improving day by day with upgrading technology. They are lending a helping hand to other sectors to grow. However, there are various challenges that the sector is currently facing in terms of RBI regulations, government interventions and the dynamic customer requirements. The present day banks in India are emerging out as better service providers to mitigate those challenges.
In the end he took up questions from the enthusiastic students and built upon the fact that how the banking sector is becoming an empowering factor for India to be a world leader. It was a very interactive session overall.