Boring Banking vs Exciting Banking!

Amar Bhide: Backstopped Banking Must Be Boring

Having written some time back on about "60 Prefixes to the term, Banking" I am now adding another new term 'Boring Banking' on which enough material is available in Google and Net.  Interesting!

And, as I move forward searching I come across another word called "Exciting Banking".  The list seems to be going endless.........................http://mostlyeconomics.wordpress.com/2009/11/27/boring-banking-vs-exciting-banking/

Customer Grievances Redressal through Ombudsman

Banking Ombudsman Scheme

I have been reading and teaching on the topic of Customer Satisfaction, Service and Grievances Redressal, etc only half heartedly.  Rarely people across the counter have 'empathy' for the customer and volunteer to understand their needs, let alone solve the problems or offer suggestions politely.  Two major committees on Customer Service in Banks were headed by Chairman of State Bank of India - viz., Shri R K Talwar, the doyen of commercial banking in India and much later Shri MN Goiporia.  Several recommendations given by these two committees were accepted / implemented but there remains a standing complaint that Bankers do not understand and serve the customers.  It could be from depositors or borrowers besides the third category of service seekers like issue of a DD., sending / receiving of a remittance, issue of an LC or Guarantee, transfer of an account or funds, settlement of accounts of a deceased in favour of the legal heirs, etc.

All said and done, Ombudsman is a typically borrowed scheme or facility from British and earlier it was for insurance claims and later extended to bank accounts too.  A detailed reading of the annual report on Ombudsman 2011 by the RBI gives us a comprehensive picture of the changes that have been effected in the post reforms era as also with the introduction of technology.  Consumer Protection Act and Right to Information Act have certainly made a change in customer service.  Today, banking or any other system can not take its customer for granted.  A critical reading of the report explains the transformation in the banking system towards extending better customer service.

25 Years of ATMs in India

Of late, I have been reading a lot of news on ATMs in India.  Be it the number of on-site and off-site ATMs set up by different types of banks from the RBI website or distribution in different population centres like Rural, Semi Urban, Urban and Metro Cities or comparison with number of branches vs. ATMs by banks.  It is very interesting to note that the first ATM in India was from HSBC Bank in 1987 which means the Indian banking industry got to celebrate Silver Jubilee year in 2012 (this year).  So much of advancement also took place in these long years with a wide variety of ATMs being introduced by our banks.

Cross Selling has been taking place through ATMs in a big way.  News items have been appearing about ATMs being stolen away by miscreants or innovative frauds being perpetrated by scamsters.  These are the counter-productive outcomes, of course.  But, it is heartening to note that as on March 31, 2011 as against 74,100 branches of all banks in the country, the number of ATMs have surpassed with a number at 74,500.  Great show indeed.

Great feeling indeed

It was a great feeling to be back with so many colleagues of SBI yesterday.  I had a pleasant invitation a few weeks back to be at the customers meet in Udupi when Mr Ashwin Mehra, CGM of Bangalore LHO visited the branches.  He was very informal and friendly with all the guests.  SBI hosted a musical evening with dinner to all its valued customers.  I took the opportunity to greet and appreciate the services of Manipal and Udupi branches. We found that me and CGM were already friends in the social website LinkedIn.

About ten days back, another invitation came from SBI stating that this time Shri Krishna Kumar, MD from CO would be visiting Mangalore/Udupi/Manipal during 26-27-28 Jan 2012.  Naturally, the CGM, GMs, DGMs, AGMs and a host of senior officials of SBI Bangalore/Mangalore were hosting an event to honour achievers at different branches of Karnataka.  I was asked to join them for a dinner on 26th and address a session on Leadership Development on 27th Jan after lunch at Summer Sands Resort, Ullal.  What a strange and wonderful opportunity to be at my alma mater for over 21 years?  I did spend the day on 27th Jan.

http://www.google.co.in/url?url=http://www.youtube.com/watch%3Fv%3DDEARBM31ISY&rct=j&sa=X&ei=Aw9UTYzXOMv5sgb1v5njBg&ved=0CEgQuAIwBjgU&q=%22Prof+Chowdari+Prasad%22&usg=AFQjCNHaXiaOqPHtNtY1e5zs4W69KEShVg&cad=rja

SBI reaches new milestones

All newspapers carried ads and news item about SBI reaching yet another milestone(s) yesterday - in opening 1,000th branch and 10,000th ATM in the current financial year in Mumbai.  Its branch strength touched 12,448 with a grand figure of over 21,000 ATMs.  In private conversations, we always used to refer SBI as a sleeping giant; a dinossaur, etc because it was a slow runner to introduce modern products and services like Credit Cards or CBS or Retail Banking products.  Now everything is reverse. Its a leader.

Two days back a Visiting Professor and Senior Consultant in a reputed international Organisation met me and was critical of SBI's  quality of service. He claimed to have been a customer of the bank for about 30 years and was speaking confidently and authentically that the bank has not improved its customer service.

Having worked in SBI between 1971 and 1993 in different capacities in various locations from a rural branch in a backward area (Warangal & Medak Districts in AP) and closely watching the progress almost on daily basis, I differed with him.  I stoutly defended the bank in its multiple initiatives be it in Customer Service or Computerisation or Branch Banking or Training to its Staff or Leader of the Banking Industry or as a leading global player including international expansions and take overs.  Besides tall claims or advertisements, numbers speak.  One is advised to visit its website http://www.statebankofindia.com/ to know more about the bank.  If only we are keen on its milestones, two research books on its history written by Amit Bagchi are testimony. 

SBI has always been transforming ever since it was formed by re-christening Imperial Bank of India in 1955 with a mandate to go rural. In 1971-72, it undertook re-organisation and introduced budgetary and planning system even when there was no major mechanisation or computerisation.  Again in 1981 and 1990 the bank went for re-structuring its working primarily keeping in view the Customer in its focus.  The logo was also designed in consultation with IIM-A in 1971 which cares for the customer - individual or institutional. SBI was also the first to have gone in for Long Range Planning for its business and organisational development.

"Parivartan" is a unique initiative by the present Chairman Shri OP Bhatt which made each and every employee of SBI to wake up and realise the threat or competition, the customer needs and need to retain if not increase its market share.  No doubt its size may some times its own hinderance but then in today's (twenty-first century) technology world size - big or small - does not matter.  Technology fecilitates global reach with faster and accurate service handling huge volumes.

Incidentally, the two major Customer Service Committees appointed by RBI in 1970s and 1990s were headed by Shri RK Talwar and Shri MN Goiporia who were sitting Chairmen of SBI.  The bank knows its customers, its country, its boundaries (but operates beyond), its competitors and its future. SBI, if fact, is a trend setter and leader in the banking industry in India; while RBI looks to SBI's advicefor all its policies .

It is nearly 17 years that I voluntarily quit SBI as a Chief Manager in April 1993, but am always referred by my friends and colleagues as SBI-man.  I have the emotional attachment to mySBI and I am a Pensioner, a Customer, a staunch Well-sher of the bank.  Almost everyday I speak at least to one of my ex-colleagues.  I feel proud that the bank is scaling higher and higher with many more milestones in the offing.  Long live SBI.

Re-Capitalisation of Banks in India

Financial Sector (including Banks) Reforms at country-level and Introduction of Basel-1 & 2 norms at global level happened almost simultaneously.  All the ills of inefficient working of banks during eighties (loan melas, poor customer care, limited product range, regulated interest rates, unproductive branch expansion, trade unionism, absence of mechanisation/computerisation, lack of Risk / Asset Liability Management mechanisms, low or no competition or level playing field, etc) exposed the banking system to its heights. Capital was never considered a measure or yard-stick or parameter to judge their performance as paper-dividends were declared due to interest being calculated on even bad and doubtful debts (now called NPAs) irrationally.

Capital Adequacy Norms necessatated almost all the banks, in particular PSBs either from the Govt funds or by going public in order to meet the global standard of at least 8% CAR; with India choosing at 9%. Some how over a decade's time, all the banks have met the requirement including through infusion of funds from Govt sources.  Come Basel 2 norms, it has become essential for these banks to scale the CAR to at least 12%.  In the process it has become an annual affair that GOI has been pumping capital for the last three years.  In the recent budget too, the FM proposed to add Rs. 16,500 crores into capital of PSBs.  Instead, these banks should tighten their belts and improve their working; prune down their NPAs so that when they approach capital market, the investing public will judge their efficiency and subscribe to the issues.

Developments in Indian Railways

It is interesting that a majority of Railway Ministers hail from Bengal or Bihar, for reasons best known only to the Hon.ble Prime Ministers! It was Ghani Khan Chowdhury who changed face of Malda some years back; in recent years 3 Biharis - Ram Vilas Paswan, Nithish Kumar and Lalu Prasad Yadav;  and currently Ms Mamata Didi.  Are they all serving Union Government covering the entire country or their own States?

We also had TA Pai, Jaffer Sherif, George Fernandes from Karnataka; but could or did they do enough to Karnataka? And a few names from Andhra, Maharashtra and so on?  Last week it was reported in the press that Lalu Prasad used the Special Saloons 369 times in four years - mostly to visit nook and corners in Bihar. When Railway Budget is presented, we are all eager to know only about how many new trains introduced. 

There are several thousands of unmanned railway crossings in the country, causing large numbers of accidents and deaths every day.  Is it not possible for the Minister or Government to dedicate three or four years to convert all these unmanned crossings into well protected with gates and post men to handle?  What would be the budget for such a focussed step?  Why can't it be taken on priority basis to save innocent lives.  Another peculiar news we often come across is open wells all over in which every three months some child or woman falls and dieing despite best of efforts to rescue spending lakhs of rupees.  These are the small achievements all the departments concerned should concentrate to improve the quality of life in this country.

Power of Nine

I am neither a Mathematician nor a Numerologist.  I simply know that number nine (9) is the last or highest among the single digits.  I firmly (or may be blindly) believe in the power of nine.  It has become a habit for me to add up all the digits when I buy a bus or train ticket or get a seat allotment and so on...... Recently, when I bought a new Car, I got a number allotted - 504 (same as my flat in Premier Enclave, Manipal).

To quote a few things where nine has significance - Nava Maasa (Nine months) a mother waits to deliver a child (all of us). And then there are Nava Grahas, Nava Ratnas, Nava Dhanya, Nava Ratri (nights), Nava Randhra (in human body), and so on.....I need to study deep into this magic number called Nine.

I understand some of the influential people like Jayalalithaa and Satya Sai Baba are also strong believers of this aspect.  Recently, I came across a huge table (full page in the opening) in a book on Financial Inclusion (by Shri DT Pai) about performance of Indian Banking System from 2001 to 2009 on several parameters.

I know of a few names of Social Entrepreneurs. To name top three from AP I have in mind are Dr Parameswara Rao of Bhagavatula Charitable Trust in Dimli near Vizag, Dr Vikram Akula of SKS (Swayam Krushi Sangham) Microfinance fame and Dr C Sankurathri.  Dr Rao's story is very interesting and older than Dr Mohd Younus entering Microfinance through Grameen Bank in Bangladesh and winning a Nobel Prize in 2006. The profiles of each of these gentlemen are mind-boggling.  If not Nobel Prizes, Government of India can seriously think of awarding Bharat.......... (I am watching all those discussions and demands on TV about Sachin to be honoured with Bharat Ratna).  My view is that any national awards are to be given to those individuals who made a remarkable changes in the lives of millions and sacrified their own lucrative careers.

You may find a very interesting video clipping on Dr Sankurathri. Please click here: http://www.youtube.com/watch?v=7miqEjnGL60&feature=youtu.be

Here is another story of an unsung, unheard and unwept hero from Andhra Pradesh. Over 25 years back, Dr Chandrasekhar Sankurathri suffered the worst loss of his family due to a heinous act of terrorism in an Aircraft in Canada. He is simply great that he is rendering yeoman services to poorer sections by providing eye care services in memory of his lost family. Government at Centre and State should immediately recognise all such individuals and honour them.

Mushrooming B-Schools in India and Pseudo Ranking Surveys

The first ranking of B-Schools in India in 2010 was carried out by Career-360 (monthly). The researcher physically visited our campus in Manipal travelling all the way from New Delhi and had first hand discussions with Students, Faculty and Staff. Their claim is that they adopted a scientific input-process-out mechanism to collect data, visit the campuses, interact with faculty and students to arrive at the rankings. The 50 Schools list is being disputed by some; while some notable players have not participated.

We have over 2,000 B-Schools - in public (Govt backed and University Depts), private or (psedo) foreign collaborated Institutes. There are multiple regulators like UGC, MHRD, AICTE, AIU, DEC, etc., and several Associations like AMDISA, AIMS, AIMS-International, etc. About 25-30 types of Entrance Exams are being conducted and Coaching Centres are flourishing day by day. In India, at least 15 to 20 such Surveys are being carried out, of late. An aspirant is getting confused. The latest entrant, interestingly, is Dun and Bradstreet, India to carry out a thorough professional exercise on all related aspects.

Hence, how will a genuine MBA-seeker get authentic ranking to freeze his choice School? Will the recuiters be able to identify good Schools from average ones? Whether age of the school or faculty (intellectual capital), location, accreditation, placement record, publications and research, physical infrastructure and ambience, library-computing facilities, student-faculty academic and other achievements, etc are all properly captured in all such ranking surveys? Do we need to have a regulator for such ranking exercises? Should it be carried out once in a year or more than once? Like Credit Rating Agencies being overseen by SEBI, do we need some intervention or governance of all these bodies/agencies? There are many such questions to be answered to take the B-School Rankings seriously, at least in Indian scene.

Suicides over Telangana Issue

It is very sad to read about every fortnight one innocent student committing suicide over the prolonged issue of separate Telangana State.  Suicides are generally resorted to by weak and helpless hearts.  Young and bright students should use their wisdom before taking such extreme steps.  After all, it is all politics.  Then, cause this agony to the parents, relative and friends. One can not become a Hero through these means.  Today's youth are fortunate to have modern life, technology, global scene and best ways of communications.  Views for or against any issue could be expressed through media, social net work or peaceful methods.

It was about forty years back (1969-70), this was a burning issue. About 370 young lives were sacrificed for this cause; thousands of students lost at least two precious academic years of career; Osmania University students were alleged to have resorted to mass copying in examinations later on and hence denied jobs in public sector organisations.  The situation came back to normal after Justice Jagan Mohan Reddy took over as Vice Chancellor and remedied the scene.  Where are all those politicians who were active in the agitation then?  Most of them have become MLAs, Ministers, CMs, Governors, MPs, and Industrialists to prosper.

Hyderabad continued as Capital of AP (although there was a parallel Jai Andhra agitation in 1970 and every one expected either Vizag or Vijayawada to be new capital).  A new Central University was granted; huge capital investment was made by Govt and people; Hi Tec City was developed by later CMs from Andhra, new and best Airport was built in last five years, Ramoji Film City was made a star attraction (entire Telugu Film Industry was moved from Chennai) and huge real estate market, retail market, etc established.

Migrations and Settlements are not uncommon.  How many Indians are settling in Singapore, Malaysia, Australia, New Zealand, Mauritius, USA, UK, Dubai or Kenya?  Some of them are into professions, some in to business and a few into even politics occupying high positions - be it in Fiji Islands, Mauritius, or USA.  Then, we need not blame Andhras settling in and grabbing jobs in Hyderabad.

Finally, whether there are geographic, climatic or cultural differences in two regions or not, it is debatable that whether small States have made any difference.  Take all seven states in North East; Pondicherry or Kerala; Chattisgarh, Jharkhand or Uttaranchal.  Not a big difference.  But, one thing is certain - a new Raj Bhavan, a new Secretariat and huge public expenditure.  All this is at the cost of the Tax Payer.

I would earnestly appeal to the Student Community to look back to 1969-70 and avoid such extreme steps.

MF Hussain and Indian Citizenship

There has been enough of debate about Hussain leaving India or not being requested to come back to India. If he is happy in Qatar, let him be. In a globalised world, every one has his or her choice to travel, settle down and lead his or her life. I believe Hussain knows where he stands.  Agreed, he is one of the finest painters in the world today but we do not know why he chooses certain themes and religions and paints them obscene.  As it is there have been communal riots and terrorists acts very often killing hundreds of innocent citizen.  Any amount of intelligence and security systems are not able to prevent this unfortunate anarchic happenings in India and abroad. Then, why a painter should use his brush and canvas, spending hours-days-months to paint such controversial pieces. 

Wisdom should prevail over one and all that any art work like music, dance, painting, etc are primarily for mental relaxation.  Whoever excels in these arts, must aim at global peace and harmony rather than involve and invite trouble.  No one can take to extreme in causing universal damage of either life or property let alone culture, values, religion and peace.  Latest news is that Hussain says India is his motherland.  Then, why not surrender to the law of the land?  Why not change your philosophy and thinking?

Buy One and Take Two Syndrome!

Retail boom in last five-six years brought in stiff competition with heavy discounts; Shopping malls here, there and everywhere. Walmart was feared to be grabbing the Indian market and even then, host of retailers entered the market. Buy one and take two got multiplied to three, four, five and even six in some cases. Then came the recession to correct the mushrooming. Today being International Women's Day, it may not be appropriate to talk about women. But, I always keep wondering how these retailers could afford; making up through volumes, I suppose.

As per Indian laws or norms, a student can not pursue two courses simultaneously, an employee cannot work in two places and a man can't marry two women. In politics, they adopt a principle one man - one post. But in mythology and puranas, Ramayan and Mahabharat tell us that Shri Ram is a model - Eka Patnivrata while his father Dasaratha had three wifes! Similarly, Draupadi had five husbands in Pandavas. Whatever be the justification. Many times I can not get convinced the reasons that why Lord Venkateswara (Balaji for some) has two wives - Padmavathi and Alivelu Manga (also referred as Sridevi and Bhudevi), Lord Shiva had Ganga and Parvathi, Lord Ganesha had Siddhi and Riddhi, Sri Krishna had Rukmini and Satyabhama besides of course, Radha and innumerable Gopikas. The list may go on and on.

I got this stray thought when I am hearing about the scandals some of these Godmen are indulging in recently in Bangalore and Delhi. Why are they fooling around innocent and gullible people who have tremondous faith in religion? These self-styled sanyasis lead posh life, travel in executive class, move in imported expensive cars, maintain secretaries and offices, use furniture of exhorbitant prices and give TV shows. Besides, it is sad that some of them are involved in sex scandals. They move in the company of politicians and VIPs and neglect the Aam Aadmi.

Again, I am puzzled that many of our businesses including Bars and Restaurants, Wine Shops, etc., name them after Krishna, Rama, Anjaneya, Lakshmi, Saraswathi, etc. Interestingly, I have not come across such names from other religions. There is no law or authority to control or prevent this type of practice. I read some time back that a Pizza Company used Goddess Lakshmi's photo in its advertisements, and was later on asked to withdraw, which was complied with. We need not look for law to take care of such things, but observe self-discipline.