Deepak Parekh (HDFC): Banking world over works on 2 principles – Trust & Confidence
Deepak Parekh (HDFC): But today, bankers are being dubbed BANKSTERS –Banking Gangsters!
Deepak Parekh (HDFC): Indian banking system insulated from global financial crisis. Its robustness is intact.
Deepak Parekh (HDFC): In fact, Indian banking regulation is being appreciated worldwide.
Deepak Parekh (HDFC): Sector NPAs up from 0.9% to 1.2% but not alarming
Deepak Parekh (HDFC): Restructured assets is 4.7%, but based on past experience, only 20% go bad
Deepak Parekh (HDFC):The ideal model for banking in India is traditional model – “Boring Banking” !!
Deepak Parekh (HDFC): There is a huge opportunity for all including new banks
Deepak Parekh (HDFC): E.g. Consumer credit in India is 8% of GDP, 19% in China, 25% in Japan, and even higher in devd countries.
Deepak Parekh (HDFC): Banking sector to see exponential growth e.g. mortgages to grow from 5 trillion in 2010 to 40 trillion by 2020
Deepak Parekh (HDFC): Insurance potential in India is huge but “A regulation a day, keeps business away!!”
Deepak Parekh (HDFC): Financial Sector Risks: Risk #1 – Regulatory Overbalance
Deepak Parekh (HDFC): Risk #2 – The negative regulatory perception of NBFCs
Deepak Parekh (HDFC): Risk #3 – Slowdown in growth of deposits
Deepak Parekh (HDFC): Risk #4 – Govt slipping on its role e.g. lower fisc, robust debt market, policy initiatives e.g. on infra, funding of PSU banks Basel III capital norm
Deepak Parekh (HDFC): Concludes – What banks should do: Customer centric, Transparency, Data mining for cross-selling, Technology
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