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Genesis of Setting up the IBA Committee Emerging Economic Scene Future Landscape of Indian Banking Change in the structure of banks Product Innovation and Process Re-engineering Technology in Banking Risk Management Regulatory and Legal Environment Rural and Social Banking Issues Human Resource Management Banking Industry Vision report 2010: Echoing the cost-control wisdom Gist of the Report with assessment/comment
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Banking Industry - Vision 2010
[Source: Report of IBA Committee under the Chairmanship of Shri S C Gupta, CMD IOB ]
Banking Industry Vision 2010
Our vision is to evolve into a strong, sound and globally competitive financial system , providing integrated services to customers from all segments, leveraging on technology and human resources, adopting the best accounting and ethical practices and fulfilling corporate and social responsibilities towards all stakeholders.
The Vision Report on Indian Banking Industry visualizes development of the domestic financial sector into a mature and dynamic industry to function efficiently and effectively as an intermediary, both, at the national and international levels. The vision statement also sets goals for the banking industry to be achieved in the next 5-10 years.
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Vision Objectives
Goal Setting
Our Vision is of an integrated banking and finance system catering to all financial intermediation requirements of customers. Strong market players will strive to uncover markets and provide all services, combining innovation, quality, personal touch and flexibility in delivery. The growing expectations of the customers are the catalyst for our vision. The customer would continue to be the centre-point of our business strategy.
It is expected that the Indian banking and finance system will be globally competitive. For this the market players will have to be financially strong and operationally efficient. Capital would be a key factor in building a successful institution. The banking and finance system will improve competitiveness through a process of consolidation, either through mergers and acquisitions through strategic alliances.
Technology would be the key to the competitiveness of banking and finance system. Indian players will keep pace with global leaders in the use of banking technology. In such a scenario, on-line accessibility will be available to the customers from any part of the globe; 'Anywhere' and 'Anytime' banking will be realized truly and fully. At the same time 'brick and mortar' banking will co-exist with 'on-line' banking to cater to the specific needs of different customers.
Indian Banking system has played a crucial role in the socio-economic development of the country. The system is expected to continue to be sensitive to the growth and development needs of all the segments of the society.
The banking system that will evolve will be transparent in its dealings and adopt global best practices in accounting and disclosures driven by the motto of value enhancement for all stakeholders.
ACTION POINTS ARISING OUT OF VISION REPORT
(the path to reach/realise Objectives)
Banks will have to adopt global standards in capital adequacy, income recognition and provisioning norms. Risk management setup in Banks will need to be strengthened. Benchmark standards could be evolved. Payment and settlement system will have to be strengthened to ensure transfer of funds on real time basis eliminating risks associated with transactions and settlement process. Regulatory set-up will have to be strengthened, in line with the requirements of a market-led integrated financial system Banks will have to adopt best global practices, systems and procedures. Banks may have to evaluate on an ongoing basis, internally, the need to effect structural changes in the organisation. This will include capital restructuring through mergers / acquisitions and other measures in the best business interests. IBA and NABARD may have to play a suitable role in this regard. There should be constant and continual upgradation of technology in the Banks, benefiting both the customer and the bank. Banks may enter into partnership among themselves for reaping maximum benefits, through consultations and coordination with reputed IT companies. The skills of bank staff should be upgraded continuously through training. In this regard, the banks may have to relook at the existing training modules and effect necessary changes, wherever required. Seminars and conferences on all relevant and emerging issues should be encouraged. Banks will have to set up Research and Market Intelligence units within the organization, so as to remain innovative, to ensure customer satisfaction and to keep abreast of market developments. Banks will have to interact constantly with the industry bodies, trade associations, farming community, academic / research institutions and initiate studies, pilot projects, etc. for evolving better financial models. Industry level initiatives will have to be taken, may be at IBA level, to speed up reform measures in legal and regulatory environment.
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