National Seminar

On

DYNAMICS OF BANKING SECTOR REFORMS

Emerging Issues, Challenges and Strategies

July 19-21, 2009

Sponsored by

All India Council for Technical Education

University Grants Commission (UGC)

Organised by
Centre for Banking studies & Research (CBS&R)
Department of Commerce & Management Studies
Andhra University, Visakhapatnam-530 003

In collaboration with
Indian Banks’ Association (IBA)
Hyderabad Chapter

Context:

The reform process was globally triggered by the globalisation of

banks and financial markets. Since the initiation of reform process in
1992-93, a sea-change has taken place in the banking environment of
India. The Post Liberalization period has witnessed remarkable changes in
perceptions, policies and practices of banks. The banking system has
traversed a long way from a highly regulated environment relating to
different parameters such as branch location, interest rates on deposits
and advances, priority sector lending, etc. to a highly competitive
environment by the implementation of reforms. As a result the Indian
Banking System has undergone several changes in terms of organizations,
functions, resource mobilization, socio-economic role, problems and
solutions.
The reform process covering the financial sector broadly touched the
areas: (1) Dismantling the barriers and opening the system to competition
by adopting measures promoting competition; (2) No directed credit or
investments, (3)Deregulation of interest rates, (4) Prudential regulation
policies, (5) Supportive merger and amalgamation policies, and (6)
transparency;
The implementation of reforms has had an all round salutary impact
on the financial health of the banking system as evidenced by the
significant improvements in a number of prudential parameter such as (1)
capital adequacy ratio (2) asset quality (3) the return on assets (4)
Business per employee and (5) recapitalization of banks by government.
The banking sector reforms also emphasized the need to improve
productivity of the banks through appropriate rationalization measures so
as to reduce the operating cost and improve the profitability.

Issues in Banking Development in India:

The Indian banking system is currently passing through a crucial phase

although the banking sector has become strong, competitive dynamic and
resilient. It is faced with several newer challenges as a result of
macroeconomic and financial sector developments, both domestic and
global. The major issues / challenges faced by the Indian banking sector
could be identified as:

1. Mobilizing resources to sustain and even accelerate the current

economic growth momentum.

2. Implementation of Basel II norms by foreign banks in India and

 Indian banks having operational presence abroad with effect from
March 31, 2008 and by other scheduled commercial banks not
later than March 31, 2008.
3. Issues involved in allowing increased presence of foreign banks in
India as the road map of foreign banks is due for renew in April
2009.
4. Progressive move towards fuller capital account convertibility,
which will expose the banking system to greater risks and would
require addressing certain issues in banking, including some
regulatory and supervisory aspects;
5. The emergence of financial conglomerates, which has raised the
issue of appropriate structure / arrangements.
6. The emergence of complex financial products, which pose several
supervisory challenges; and
7. The need to extend financial services to the large number of
people, who continue to remain outside the banking system.

It is also pertinent to turn to some of the areas where the scheduled

commercial banks in general and public sector banks in particular face
certain challenges and hence, need to work further to achieve the desired
results, particularly in regard to fallen leveraging of the available
technology for rendering better banking services to the public at large: (a)
Awareness of Electronic Payment Products; (b) Natural Electronic Fund
Transfer; (c) ATM Networks; (d) Credit Cards; (e) Satellite Banking
Financial Inclusion.

Objective of the Seminar

The seminar makes an effort to discuss the multifaceted issues

and challenges which the banking sector is facing in a fiercely competitive
environment as it exists today in the country and abroad. It has the
objective of evolving a strategy that is forever morphing, forever
conforming itself to emerging opportunities and incipient trends in the
context of strengths and weaknesses of the Commercial Banks in India.

Conference Themes:
Theme-I Development Issues in the Socio-Economic Context
• Financial Inclusion Access to Finance by MSMES
• Banking Legislation
• Financial Soundness Indicators
• Capital Augmentation
• Capacity Building
• Corporate Governance &Transparency Issues
• Road-map for foreign banks
 • Consolidation
• Competition (Amendment) 2000 Act
• Stress Testing & Risk Management
• Financial Conglomerates

Theme-II Financial Institutions & Markets – Aspects of Stability &

Performance
• Financial Market Integration
• Money Market Integration
• Foreign Exchange Market
• Govt. Security Market
• Equity Market
• Corporate Bond Market
• Anti-money laundering

Theme-III: Regulatory & Supervisory Structure

• Assessment of Basel Principles.

• Payment & Settlement Infrastructure
• Business Continuity Management
• Combating Financing of Terrorism
• Legal Infrastructure
• Liquidity Infrastructure
• Safety net Issues – Deposit Insurance
• Regulatory Structure
• Regulatory Cooperation
• Self-regulatory Organisations

Theme-IV Customer Service Management

• Electronic Payment Products
• ATM Networks
• National Electronic Fund Transfer
• Credit & Debit Cards
• Satellite Banking Financial Inclusion
• Managing Customers of Diverse Strata
• Customer Satisfaction Measurement
• Customer Relationship Management
• Scarcity of Talents
• HR Training & Development

About Organisation of Technical Tracks:

The 4 themes and sub-themes identified are organized into 4

Technical tracks. Each technical track will be chaired and co-chaired by
eminent bankers having vast professional experience in their fields besides
invited lectures by experts in the identified topic areas. There will be a lead
discussant in each of the technical track to provide insights for meaningful
interaction and discussion. Selected paper writers (thro’ blind review) will
be given an opportunity to present their key points and issues.

Abstracts: Prospective contributors of the research papers are initially

required to submit an abstract of their papers on or before 30th June 2009
in not more than 500 words covering the importance of the topic,
objective(s), critical findings & suggestions on acceptance of the abstract,
the relevant authors are required to submit the full research papers by July
10th, 2009.

Instructions to Contributors: Each contributor is required to submit a

double-spaced copy of the full paper and an abstract (not exceeding 500
words) in Microsoft Word for windows format (windows 93 or higher is the
preferred format). For consistency, use a 12-point type font and 1”
margins all around. The paper should not exceed 20 pages. Please include
a cover page indicating the name, title, affiliation, complete postal address,
e-mail address, telephone number and fax number of the author(s) on the
cover page. Please also indicate the Theme and Sub-Theme of your paper.
Abstracts without full paper will not be considered.

Please keep in mind that if you are the co-author of more then one
paper accepted at the conference, at least one of your co-authors of the
other papers must register in order to present more than one paper at the
conference.

• All papers must not have been previously published or currently

under review for publication elsewhere.
• Selected Papers will be published in print and electronic format in
seminar proceedings.
• In order to include a paper in the conference proceedings, the
relevant author must register and present the paper at the seminar.
Important Deadlines:
Submission of Abstracts : July 5, 2009
Notification of Acceptance By e-mail : July 8, 2009
Submission of full paper : July 15, 2009
Registration (on or before) : July 16, 2009
Seminar Dates : July 19, 20 & 21st 2009

Registration Fee (Without Accommodation)

Bank/Corporate Participants : Rs.2, 000

Academicians & Scholars (Part-time) : Rs.1, 000
M.Phil/Ph.D. Scholars (Full-time) : Rs. 500

Other Information:

• Please be informed that DCMS will not be able to provide any travel
grant or accommodation facilities to the participants.

• The registration fee covers seminar Kit, Proceedings, Lunch, Dinner,

Tea & Snacks during the three days of the seminar (July 19-21)

About Andhra University (AU)

Andhra University was established in 1926 an had many great

personalities like Dr. Cattamachi Ramalinga Reddy and Dr. Sarvepalli
Radhakrishnan as former Vice – Chancellors, Andhra University was
established on the lines of Newman, a noted educationalist, as an ideal
university. Andhra University was first to offer Management Education in
India, second to offer Pharmacy and first to offer Retail Management in
South India. The University has been accredited with ‘A’ Grade status by
the NACC in 2002. the University has bagged the prestigious ISO
9001:2000 Quality Certification from SUV South Asia Pvt. Ltd.
The Andhra University is located in the Uplands of Visakhapatnam
which Sir. C. R. Reddy prophetically called “The City of Destiny” with the
magnificent ‘Kailasa Hill’ as the backdrop and the mystic blue of the Bay of
Bengal in its front, the University enjoys a unique setting and its calm and
serenity inspire the seekers after knowledge. It occupies a sprawling
campus of 200 hectares dotted with more than 100 buildings.
The University campus is a self-contained township with two
administrative blocks, well-equipped laboratories, and workshops, a Library
ranking 5th in magnitude in University Libraries in the country. The
University has its own Press & Publications division and an Employment
Information and Guidance Bureau run by the State Government of the
benefit of the student community. It has also a student centre and sports
complex including an indoor gymnasium hall. There are Affiliated Colleges
(both Government and Non- Government) located in five districts of its
jurisdiction (viz) Srikakulam, Vizanagaram, Visakhapatnam, East Godavari
and West Godavari besides five University Colleges and four P G Centers
known as A.U.Campus Extension Centres.

Department of Commerce and Management Studies(DCMS)

 The Department of Commerce and Management Studies came into
existence in 1934 by offering B. Com, (Hons) Programme for the first time
in South India. further in 1957, the Department was first to start the two-
year MBA Full-Time Programme at National Level and Produced talented
executives for five decades who have been occupying coveted positions in
India and Abroad. to Meet the needs of executives of the local Industry,
the Department started a three year MBA Programme in 1977 for the first
time in the State of Andhra Pradesh and further expanded with the MBA
Programme under Distance Mode. The Department started a first of its
kind, customized Executive MBA Programme in National Thermal Power
Corporation (NTPC) and Visakhapatnam Steel Plant (VSP) in 2005 and MBA
Retail Management Programme (FT) in 2006. The Department has a
strong faculty who has carried out extensive research in the areas of
Commerce and Management. The Faculty has completed around a
perennial effort to achieve now heights of academic excellence and to cater
to the dynamic needs of the society. The Department has the credit of
producing the largest number of Doctorates in the faculty of Commerce
and Management. So far 280 PhD’s and over 350 M.Phil’s have been
awarded. The Department received a sanction under Special Assistance
Programme (SAP) by the UGC in recognition as a Centre of Excellence.
Department also received a sanction of assistance from UGC under ASIHSS
programme to carry out research in Finance, Accounting and
Entrepreneurship.

Centre for Banking Studies & Research(CBS&R)

The Centre for Banking Studies and Research (CBS&R) has been set
up in the Department of Commerce and Management Studies, Andhra
University to undertake advanced research, training and allied activities in
a befitting manner.

Research Projects:The Centre for Banking Studies & Research (CBSR)

has undertaken the major research projects such as: 1. Bank finance to
SSI Sector-A case study of Andhra Bank in Visakhapatnam (1989-90). 2,
Role of Commercial Banks in Rural Industraiisation : A case study of
Andhra Bank of East Godavari District (1990-91), 3. Role of Andhra Bank
in the Tribal Development in Srikakulam District (1991-92). 4, Social-
Economic Profile of sub-staff of Andhra Bank in Vizag Zone (1993-94). The
Department has so far produced 26 Ph. Ds and 56 M.Phil's in the area of
Banking.

Seminars Organised: The CBSR has organised five National level

seminars/conferences which include: 1. National Seminar on
"Nationalisation of Commercial Banks in India: Progress and Problems".
Jointly organised by Centre, for Banking Studies and Research, DCMS and
Institute of Public Sector Management, AU on 19th July 1998. 2. Banking
Sector Reforms in India organised by Institute of Public Sector
Management and Centre for Banking Studies and Research, Dept. of
Commerce and Management Studies, Andhra University, Visakhapatnam on
19th July, 1998. 3. National Seminar on "Emerging trends and Challenges
in Indian Banking" Jointly organised by the Centre for Banking Studies and
Research, DCMS and Institute of Public Sector Management, AU' on 19th
July 1999. (To commemorate 30 years of Banks nationalisation in India).
4. National Seminar on "Financial Intermediaries & Services in India",
Jointly organised by Centre for Banking Studies and Research, DCMS and
Institute of Public Sector Management, AU, during 10-12 March 2007. 5.
Housing Finance: Opportunities, Challenges & Strategies, sponsored by
Andhra Bank and UGC, organised by Indian Banks Association (IBA),
Hyderabad Chapter and Centre for Banking Studies and Research (CBSR),
Department of Commerce and Management Studies, Andhra University on
21st Sept, 2007. A National Seminar on ‘Financial Inclusion’ is being
organized by CBS&R in collaboration with IBA during 25-26 Nov, 2008 at
Visakhapatnam. 6. National Seminar on Financial Inclusion, jointly
organised by CBS&R, AU and IBA, Hyderabad Chapter, on 25-26,
November, 2008. 7. National Seminar on Social Justice, Dec 30th, 2008,
sponsored by UGC, New Delhi.

Endowment lectures organised: The most important professional

activity of the Centre has been, organisation of Andhra Bank Endowment
lecture by luminaries in Banking sector of National and International
repute. So far eight Endowment lecture were organised by the centre as
follows. 1. "Profitability Management in Banks" by Prof. M. D. Sharma, RBI
chair Professor and Dean, Faculty of Commerce, M. S. University of
Baroda, Baroda, On 27th April 1989. 2. "Tax Culture and Tax Education",
Dr. T.N. Pandey, Chairman, Central Board of Direct Taxes, New Delhi, on
Tuesday, 9th April 1991. 3. "India's Planning in Nineties" Dr. D.
Swaminadhan, Member, Planning Commission, Government of India, on
Sunday, the 1st March 1992. 4. "Banking Scenario", Padmasri. Ramesh
Gelly, Chairman, Vysya Bank Ltd, Bangalore, on Tuesday, 3rd March, 1993.
5. "Emerging trends and Challenges in Indian Banking". Sri Y. V. Reddy,
the then Dy. Governor, RBI, 19th July 1999. 6. "Contemporary issues and
Challenges facing the Banking Sector in the New Millennium", by Shri. B.
Vasanthan, Chairman & Managing Director, Andhra Bank, Hyderabad, on
Saturday, 23rd September 2000. 7. "Changing Trends in Indian Banking
with specific reference to Technology, Customer Service & Social
Development", by Shri. K. Ramakrishnan, Chairman & Managing Director,
Andhra Bank, on Tuesday, the 19th July 2005. 8. "Indian Banking:
Yesterday, Today and Tomorrow", by Prof. V. Balamohandas, Vice-
Chancellor, Acharya Nagarjuna University, Guntur, on Tuesday, 19th July
2005. 9. "Betting on Human Potential.. Vital Need for Success for an
Organisation" by Mrs. Ranjana Kumar, Vigilance Commissioner, New Delhi,
on 27th July, 2007. "Evolution of Bank - Customer Interface" by Sri Arun
Ramnathan, I.A.S, Secretary - Ministry of Finance, Govt, of India, New
Delhi, on 26th July, 2008.
 Organising Committee:

Chief Patron
Prof. Beela Satyanarayana
M.E.(MD), M.E.(IE), M.Teh, (CST),Ph.D (IITD)
Vice-Chancellor
Andhra University

Patron
Prof. L. K. Mohan Rao
Principal,
A.U.College of Arts & Commerce

Advisory Committee: Organising Committee:

Prof. P.V.G.D.Prasad Reddy Prof. D. Prabhakara Rao

Registrar, A.U Prof. R. Satya Raju
Prof. D. Harinarayana Prof. I. Muralikrishna Rao
Dean of Academic Affiars, A.U. Prof. M. Lakshmipathi Raju
Prof. P. Hrushikesav Rao, Prof. K. Ramamohana Rao
Director, School of Distance Education, AU. Prof. M. Madhusudhana Rao
Prof. U. Viplav Prasad Prof. P. Veni
Director, A.U.Press & Publications Prof.D. M. Sheiba Rani
Sri N. Laxmi Reddy Prof. G. Satyanarayana
Deputy General Manager, Prof. G. Sudarsana Rao
Andhra Bank Zonal Office, Visakhapatnam Prof. D. Lalitha Rani
Sri S. V. S. Ram Prasad Prof. N. Rajya Laxmi
Asst. General Manager, (Administrative) Prof.C. V. Kannaji Rao
State Bank of India,Visakhapatnam. Prof. N. Sambasiva Rao
Sri Ranganathan Prof. R. Madhusudhana Raju
Bank of India, Prof. IVRL Narasimha Rao
Visakhapatnam. Prof. M. Sandya Sridevi
Sri G. Sudhakar, Prof. A. Narasimha Rao
AGM and Circle Head, Sri. N. Krishna Prasad
Indian Bank, Dr. K. Satyamurthy
Visakhapatnam. Dr. J. Ravi
Sri C. V. S. Malleswar Rao, Dr. N. Kishore Babu
AGM & Branch Head – MCG, Dr. M. Sarada Devi
IDBI Bank, Visakhapatnam. Sri S. Sri Babu
Sri G. Varadarajan, Dr. M. Uma Devi
Chief Manager,
Karur Vysya Bank, Visakhapatnam. Seminar Director:
Sri V. Pavan Kumar,
Asst. Vice President & Branch Head, Prof. B. Appa Rao
AXIS Bank, Visakhapatnam. Director-Centre for Banking Studies &
Sri S. Rama Prasad Sinha, Research,
Assistant General Manager, Dean-Faculty of Commerce &
SIDBI, Visakhaptnam. Management Studies
Dr. P. S. Rajeswara Prasad Head- DCMS
General Manager,
APSFC,Hyderabad
 Seminar Joint Directors:
Prof. K.Sambasiva Rao Prof.V. Krishna Mohan
Prof. P. Viswanatam Dr.B.Mohan Venkata Ram
DCMS, AU DCMS, AU

“For enquiries & sending abstracts, please mail:

bapparaoau@gmail.com

vaddadi_km@sify.com

bmohanvram@gmail.com ”