My exposure to Two B-Schools

After serving in the banking industry jobs for over 25 years and 3 years in a manufacturing cum export company in Hyderabad and elsewhere in various positions, it was a dramatic turn for me to have entered academics in May 1999.  I lived in backward rural areas as also in Mumbai Metro for my banking jobs.  May be my flair for training and long years of experience in management led me to join TAPMI, Manipal. Entering my fortieth year of service, there is enough to look back from so many angles; with almost 50-50 exposure to public and private sector. I feel I have always been learning many things in a hard way and did justice to all the assignments so far.

In the past eleven years itself, during my exposure to two b-schools in Manipal and Bangalore, besides my teaching the MBA students courses like Banking Management, Financial Management, Executive Communication, Accounting, Financial Services, Entrepreneurship, Venture Capital, Retail Banking, Industrial Relations, Business Laws, etc.,  life taught me so many lessons. Quite frequently, my former students keep asking me about the two experiences. It is pretty difficult to pen down but I would scribble some thoughts.

Both are in private sector offering autonomous 2 Years PGDM. That is probably the only similarity.  One is in rural location and other in Metro; one is managed through Faculty Governance and other by a Family Management.  One is over twenty five years old and the other just five years. In one, I was Chairman-Admissions and the other Registrar - rendering my administrative skills besides academic pursuits. They both have different styles of Governing Bodies, Admissions, Curriculum design and delivery, Evaluation Systems, Faculty Recruitment, Service conditions, Placement facility, Student Activities, Alumni Relations, International Exchange mechanism, Web site info management, Focus on Research and Consulting, and so on. Even their approaches to Accreditations with regulators and B-School Rankings are also entirely different.

Interestingly, I had chosen the former even though in a remote location to rejoin and pursue my career further. I keep reminiscing my past in all the Organisations I worked in, and compare them too.  Life is a big leveller and one has to be learning lessons on an ongoing basis with an eye on continuous improvement (KAIZEN).

A fulfilling trip to Salem, TN

The Summer Vacation 2010 was different for me. My First Day was at Oracle office in Bannerghatta, Bangalore on 14th May with Dr Simon and Prof Jaims for a valediction program.  Side by side to availing of vacation, I have been also attending to official work at CEE, Koramangala primarily for e-GPX related work.

On 22nd I travelled to Salem / Rasipuram in TN by taxi along with Ganga to address a session on Emotional Intelligence to 35 participants of an AICTE sponsored  two week long (10th to 22nd May) Faculty Development Program conducted by Muthayammal Engineering College.  I was invited by Dr Saravanan Raj, HOD of Management Dept., also to be a Special Guest at the valediction to deliver an address and distribute the Participation Certificates. I had the opportunity of interacting with Dr Prabhakaran of NIT-Calicut.

The second part of the trip was to visit another unique and special Ganesha temple about 10 kms away from Salem on 22nd evening. Next day, we travelled to another special tourist spot - Yercaud, a hill station.  It was really a pleasant morning going round gardens and boating.  TN Tourism Department and Government deserves to be complimented for offering such a wonderful spot to the tourists.  A few photographs have been uploaded in my pages in Face Book and Orkut. We returned home on the evening of 23rd May.

As the vacation is continuing with my personal and official works, with visits, mails and phone calls, I have also completed the evaluation of papers from Sri Satya Sai University, Puttaparthi, AP. There is some progress in my Ph.D. work too.  Some other developments during the period are Air Crash in Mangalore on 22nd,  Alumni meet in Bangalore on 22nd, PM's important Press Meet on 24th, Dr KS Rao's shift to a new B-School in Bangalore, discussions with DNSK, CKR, Mohan, Sowmya, Kavita, et al on various matters.

My life, my years

I turned 57 years old on last October 19. And this month, I entered 40th year of my long career. Born in the year 1952, I passed HSC (XI th Standard) in First Division in April 1967 at the age of fourteen and half! Then it was PUC in 1968 (we faced some communal disturbances in the Science College, Saifabad for a month or so) and went on to join 3 Year B.Sc.(with Maths, Physics and Geology) in the same year.  Had there been no disruption of studies during 1969-70 in Telangana / Osmania University, Hyderabad, I would have graduated at the age of eighteen and half! But, sitting idle at home and reading papers, fate took me to look for job advertisements during 1970-71 which led me to get selected and join the Andhra Bank job with merit.  All these incidents had also an indelible mark in my life - achieving something or the other at a very young age. Life is very strange indeed!  Suddenly, I feel I am aging!!

Having started to work at eighteen and half in April 1971 in Head Office of Andhra Bank, Hyderabad, I changed jobs six times since then. I went to SBI (1971-1993), Wonder Granites Ltd-Hyderabad (1993-96), Canaan International Credicorp Ltd-Hyderabad (1993), The Vysya Bank Leasing Ltd - Bangalore (1996-99), TAPMI-Manipal (1999-2006) and Alliance Business School (2006-09). 

Thanks to my late father's encouragement, I joined Vivek Vardhini Evening College, Hyderabad in B.Com first year classes in June 1972.  Interestingly, in the same year I cleared the CAIIB first part with hard work. Pursuing graduate and Post Graduate studies for next five years was a herculian task I experienced while working and attending evening colleges.  Fortunately, I passed out both with University level ranks - 4th in B.Com in 1975 and 6th in M.Com in 1977. This and other academic pursuits on an ongoing basis helped me to build my professional career on fast track. Quitting graduate studies almost in the fag-end did not stop me pursuing my studies further like Diplomas in Training & Development, in Merchant Banking, in Industrial Relations, Computer Programming, Industrial Finance, etc in later years. I do not know how and when I would be completing my Ph.D. which is a requisite for any good academic.  My fingures are crossed!

SBI gave me everything.  My acquiring B.Com and CAIIB Part-I well in time, made me eligible to appear for Trainee Officers competitive exam in 1976, which is considered to be tough and prestigeous for promotions.  I succeeded in my first attempt only thanks for the motivation from my father.  I achieved my Post Graduation and TO selection in 1977.  After working in various branches for two years as a Trainee and on confirmation in 1979 again at different branches as Accountant, Field Officer and Branch Manager (mostly in rural Telangana branches), I moved to RO, Hyderabad in mid-1984 and to Central Office, Mumbai in November, 1984.  In the two years 1984 and 1985, I completed the qualifications with IIB - viz., Certificate in Industrial Finance and CAIIB (Part II). These added to my CV and I was promoted in merit channel from Junior Management to Middle Management Grades II and III in 1984 and 1985.  While continuing in Mumbai up to 1992, I was also promoted to Senior Management Grade IV in 1990.

I got married to Ganga on 23rd March 1983 while I was working as a Branch Manager, SBI, Agricultural Development Branch, Wardhannapet in Warangal Dist, Andhra Pradesh.  My daughter Sravanthi was born on 10th July, 1985 in Vizag, AP while we were in Mumbai.  Life in Mumbai for about 9 years is memorable.

Working life has taught me so many things; so also the places where I worked and people with whom I was associated. On date, I had twenty one years of public and eighteen years of private sector experience. Shift from my successful banking and administrative career to Aademics in 1999 was a very big challenge to me. Sharing of my banking experience in rural and urban centres, in administration and branches, with students of MBA 2nd year offering MBFI as an elective course was the beginning in 1999.

The next term of course, I added value to another course titled Financial Services drawing from my three years stint as Vice President in The Vysya Bank Leasing Ltd, Bangalore. My banking and administrative experience gave me success for four consecutive years as Chairman-Admissions in TAPMI with multiple positive results.But then, fate again played its role to take me to Alliance Business School in Bangalore for less than three years 2006-09 as a Professor of Finance and Registrar. And then, I re-joined TAPMI as a Professor in June 2009.  I was given responsibilities of Area Chair - Finance & Economics as also Chairman of Branding, Promotion and Consulting Committee.  I had to reestablish myself in TAPMI and Manipal.

By now, I am an accomplished person, if not an excellent Academician.  I taught courses, handled assignments, wrote research papers, chapters in books, delivered lectures, led committees and struggling to complete my Ph.D. which is a necessity in this field. I also teach a course on Business Laws online for a tech agency called 24x7 Learning. I spend long hours in either reading auto-biographies of successful entrepreneurs from India or abroad or hook to computer to fiddle with the Internet and Social Networks which has become my latest fad. Today, one an find me in google, bing, scribd, twitter, facebook, orkut, linkedin, wiziq, peerpower.com, etc.  Let me see what is in store for me in the rest of my (working) life.

TAPMI, Manipal - Oracle Program 2010

Foreign Banks in India : Study

Business World latest issue carries the study.

thanks,

Prof Chowdari Prasad

TAPMI, Manipal-576104

Karnataka, India

Off: 91-820-2701045

Mob:09242124642

MPLAD and recent Supreme Court ruling!

News is that the salaries of Members of Parliament are to be revised.  The Hindu (daily) in its Editorial on May 11. 2010 wrote "All Pay, No Work" - MPs don't deserve a five-fold salary hike.  The Editorial also has A THOUGHT FOR TODAY : India is the only democracy in the world where MPs decide their own salaries - Somnath Chatterjee, Former Lok Sabha Speaker. What an irony? Mera Bharat Mahan!

It says that a Joint Parliamentary Committee has recommended that an MP's salary be hiked from the existing Rs. 16,000 to Rs. 80,000, which would be at par with that of a Secretary to the Government. Remember, they have handsome perks of all sorts too........... taxable or otherwise! It amounts to Rs 38 lakhs per year!!

It is a big debate, never ending, that if these so called People's Representatives have made all sacrifices to enter public life to serve the Aam Aadmi, why they should be paid 'salaries'?  Do they come under any of the Industrial Relations legislations? They are not full time employees with a set of service conditions, timings, duties and responsibilities. Do they observe any Code of Conduct? Is their annual performance reviewed by any one (the employer)?  The Speaker of Lok Sabha has been struggling and pleading with them to submit their Assets & Liabilities data recently.

The Hindu, on May 07, 2010 (p 12) carried an article with a caption "Nothing unconstitutional about MPLAD Scheme, rules Supreme Court" - mere allegation of misuse by some MPs in itself may not be a ground for scrapping it.  Members of Parliament Local Area Development Scheme.  Strange are the rulings of the highest seat of judgement - Supreme Court, in some cases.  Recently, SC ruled that pre-marital sex and Living In arrangements are okay in Indian society!  Similarly, the MPLAD Scheme which is in operation for about twenty years is ruled to be okay.  Supreme Court judgement on MPLAD Scheme. 

This innovative and interesting scheme was introduced by the then Prime Minister Mr PV Narasimha Rao in early nineties.  The objectives may be sincere but the motive must be to keep the MPs in good humour.  It is the tax payer's money that is doled out at Rs. 2 crore per MP per year.  If I do the maths, the amount spent (if at all), would run to billions in last twenty years.  If only the amounts were spent / invested judiciously, wonders if not miracles should have taken place all over the country in infrastructure, drinking water facility, education, electricity, health and sanitation, family welfare, irrigation, non-conventional source of energy, community centres, public libraries, bus stands, roads, pathways, bridges and sports infrastructure. But......?

Where is the local area development?  Who is accountable?  What is the Comptroller or Auditor General of India doing?  Is there any study to substantiate the outcome of this Scheme in any part of the country.  Like they say, Courts have no eyes but only ears (no mention about mind, heart, soul, etc, of course).  Seeing is always believing.  Let a senior Parliamentary Committee go into the working of the scheme, study the fruits it had borne, and review.  There ought to be misuse, misappropriation, fraud, cheating, etc in a majority cases.

Let not the politician and bureaucrat take shelter under the so-called judgement of the Supreme Court and continue to enjoy the funds and amass wealth at the cost of the ex-chequer and tax payer's money.  The ruling and opposition parties  and their members should be honest and committed to rural development rather than collude to continue to operate such schemes for ever without audit, review, revision and disclosures. Instead, if the judiciary joins hands with polity and bureaucracy to say "All Is Well", the poverty sticken, debt-burdened poor and hungry farmers continue to commit suicides without any remedy. 

Similarly, the foul cry and recent buzz word like Financial Inclusion - would never achieve total revolution in the country.  All the schemes and slogans will remain on paper only.  PMs and Governments will continue to come and go; Five Year Plans would go on and on;  Today, we have fortunately an honest and sincere Prime Minister and also an erudite and efficient/committed Deputy Chairman of Planning Commission.  They should be ever remembered for all the contributions to the people of the country towards development, growth and total change in quality of life - thanks to economic and other reforms.  No more populist measures please.

Cooperative Banks to merge with Commercial Banks?

Coop Banks to merge with Commercial Banks in India?

This is an unpalatable development and a death blow to the Commercial Banking System in India.  During the early years after Independence, cooperative banks were found to be not serving their purpose, and were not viable to be set right.  Commercial Banks were asked to go rural beginning with Imperial Bank of India nationalised as State Bank of India in 1955.  This was followed by take over of eight State-owned banks - viz., Bikaner, Hyderabad, Indore, Jaipur, Mysore, Patiala, Saurashtra and Travancore to merge as seven subsidiaries (SBBJ being one bank) of State Bank of India in 1957.

Later, in 1969 and 1980, the Indian banking system witnessed two major nationalisations of fourteen and six private banks to be brought under the public-sector fold.  The State Bank Group and Public Sector Banks were handed over the agenda of opening rural branches, spread banking at village level, take up agricultural finance in a big way and follow the Lead Bank Scheme introduced in 1969.  No doubt, it affected their bottom lines as initially they were not cut to handle such business while cooperative system was co-existing and had burnt their fingers too.  The new banks had no choice of their business, pricing, customers, etc.

Then came year 1975, when on the recommendations of some high power committees (during the Emergency regime), the new concept of low-cost, locally staffed concept of Regional Rural Banks whose capital is contributed by the Central / State Governments and Sponsoring PSBs.  Each such RRB was expected to serve a contiguous area of one or two districts in a State, preferably by the Lead Bank of the District. Initially, the manpower requirement was supported  by the sponsoring bank. As many as 196 RRBs were floated to serve the one or two contiguous districts all over the country, again for rural lending.  All of them have also been consolidated in recent years; they number around 89 or so now.

Enter the era of Financial and Banking Sector Reforms in 1991 (after the Public Sector banking system was in a very bad shape in terms of productivity, profitability, automation, pricing, customer service, etc).  Almost all the PSBs and private banks were also hit by the wave of Harshad Mehta's Stock Market Scam in 1992. Their Balance Sheets went out of shape and needed serious corrections - thanks to the introduction of Basel norms, prudential norms, etc. Concepts like Capital Adequacy Ratio, Prime Lending Rate, Asset Liability Management, Risk Management, etc have entered the banking scene gradually while computerisation came very handy tool to manage the huge business levels and demand for productivity and efficiency.

The concept of Local Area Banks in 1995 (brain child of Mr P Chidambaram) did not take off well.  They were private sector rural banks with a higher capital of Rs. 5 crores covering two to five districts in a State. Today, hardly four such LABs are functioning. RBI took a policy to stop further licencing of LABs.  Islamic Banking was not permitted to be undertaken by banks in India.  Micro Finance has entered the Indian scene slowly and steadily.  Financial Inclusion is the buzz word today.  Non Governmental Organisations, Business Correspondents, etc as also franchising and outsourcing is the order of the day.  Technology has been heavily introduced in the banks in India. 

After nearly two decades of reforms, there is a highly efficient and transparent level playing field in the Indian banking scene.  Foreign Banks, though permitted to enter the field, are very selective and are very apprehensive of their profitable operations.  At this juncture, when consolidation of PSBs and Private Banks did not receive the nod from different circles, it is interesting that cooperative banks are being attempted to be consolidated to merge with Commercial Banks.  We need to wait and watch for the policy to be announced and to see the outcome as to who would be the real beneficiaries of such a move?  The staff, the depositors or borrowers, the regulators, or the politicians?  God save Indian Banking!