Banks told to brace for new regulatory regime

Banks have to reorient their resources (HR, branch network etc) to brace the new challenges of competition and the regulatory changes.

Bankers need to hone their skills to handle issues like product positioning, innovative delivery channels, cross selling etc, M R Senapathy, faculty member at ICFAI University, said at a seminar on 'Emerging Trends in Banking.'

The seminar was organised by ICFAI University for working executives, professionals and students in Hyderabad. The main objective of the seminar was to provide an exposure to the best practices that are emerging in the field of banking. More than 100 executives, professionals and students attended the seminar.

Explaining the origin, developments and emerging trends in the banking sector in India, Senapathy traced the significant changes in the banking sector since the economic reforms were initiated in 1991-92.

He also explained the Basel Framework that calls for adopting more risk- sensitive minimum capital requirements for banking organisations.

He said that bankers with good command on subjects such as credit management, risk management, treasury management, retail lending, managing insurance products etc would have an edge over others.

They need to reorient their strategies in line with the market needs to be ahead of others, he added.

M N Ravi Chandran, assistant vice-president (credit), Oriental Bank of Commerce, spoke on the overall credit management. He also spoke on the various credit facilities, appraisal processes and risk mitigation.

He made a detailed examination of the credit processes used by the banks. He also touched upon the issues which impact a bank's ability to manage and control credit.