Pune: Experts believe that stressed assets have forced banks to rethink about their strategy and structure ushering a paradigm shift in the Indian banking setup. This sentiment was emphasised by Chairman and Managing Director, Dena Bank, Ashwani Kumar, and Managing Director and Chief Executive Officer, Allahabad Bank, Usha Ananthasubramanian.
They touched upon the topic while addressing the gathering on the occasion of the 48th Foundation Day of the Pune-based National Institute of Bank Management (NIBM) on Sunday.
Kumar was the Chief Guest of the function while Ananthasubramanian was the Guest of Honour. Director of NIBM, KL Dhingra gave an overview of the NIBM activities during the last 48 years and also presented a brief about NIBM’s future plans.
Dhingra said, “The total number of participants, who attended NIBM training programmes, has gone up by 93 per cent during the last three years. The number of foreign participants has gone up by 100 per cent.”
Kumar delivered the Foundation Day lecture on ‘Changing Landscape of Banking - A Futuristic Perspective’ while Ananthasubramanian spoke on ‘Regulatory Technological and Human Resource Challenges for Enhancing Effectiveness of Indian Banks’.
Both the dignitaries touched upon how the banking is in a state of flux from the technology as well as human resource point of view. The dignitaries also spoke about the regulatory challenges, risk management, the issue of stressed assets and corporate governance.
“Stressed assets have forced banks to rethink their strategy and structure. The new paradigm shift towards this is the coming in place of Insolvency Bankruptcy Code. Technology has been a game changer for the banks and banking system on one hand with mobile to WhatApp banking, while cybersecurity threats, on the other hand, remain a huge challenge and a cause for concern,” they said.
In light of mounting Non-Performing Assets (NPAs) with banks, Dhingra highlighted the proposed plan of NIBM to conduct workshops on new EcoSystem created by the Indian Government for resolving ballooning NPAs.
“NIBM is also proposing to conduct programmes to help banks under Prompt Correction Action (PCA) of the Reserve Bank of India to come out of PCA at the earliest and improve their financials,” he said.
Service mementos were presented to those employees of NIBM, who have completed 25 years of the service to the institute, during the Foundation Day ceremony.