2011 Summary can be downloaded HERE - FT Live

Maximising Future Opportunities
in India's Fast-Growing Financial Sector

THANK YOU for your support
Platinum & Founding Sponsors
Gold Sponsors Silver Sponsors
Organizers
CWCNSL

FT-YES BANK International Banking Summit
15-16 November , 2011, The Taj Mahal Palace, Mumbai, India
YES BANK, India's new age private sector Bank and Financial Times,
world's leading business
newspaper, instituted the first-of-its-kind FT-YES BANK International Banking Summit,
a pathbreaking
conference focused on Maximising Future Opportunities in India's Fast-Growing
Financial Sector.
Although India's financial industry remains dominated by the public sector, the number of domestic
private banks has grown rapidly, with many of them venturing overseas, and many foreign financial
institutions building up their share of the Indian market. Increasing integration with the global
financial architecture, however, has brought fresh challenges, both regulatory and competitive.
This unique platform was conceived with the objective of analyzing the latest global and domestic
challenges facing India's financial industry, and exploring how they can be turned into opportunities
for local and foreign institutions in one of the world's fastest growing economies.
The exclusive Summit received an outstanding response, and witnessed the presence of Government
Leaders & Policy makers, Regulators, Indian and International Bankers, Corporate and Thought
Leaders from across the world. The discussions were extremely interesting and insightful with
praticipation from over 40 renowned speakers and more than 1000 distinguished delegates.
The
interactive session with Shri Pranab Mukherjee, Hon'ble Finance Minister, Government of India,
discussion with international regulators and the interactive Q & A sessions were all truly well
received.
Going forward, we are certain that this annual Summit will provide an excellent platform for
participants to network and learn from the insights, experiences and best practices of leaders and
experts from across the world. We look forward to your continued support towards this significant
initiative.
Yours sincerely,
John Ridding
CEO
Rana Kapoor
Summit Chairman &
Founder, Managing Director and CEO
1

2
Highlights
A world-class platform taking India and Indian banking to the world
Exclusive interactive discussion with Shri Pranab Mukherjee, Hon’ble Finance
Minister, Government of India
Participation of over 1,000 distinguished delegates from across the world
Participation from Key Leaders across Government, Indian & International
Regulators, Banks & Corporations and Opinion Leaders
Over 40 world-renowned speakers from India and Overseas
Address by Shri Pranab Mukherjee
Honourable Finance Minister, Government of India
DR. RANA RANA KAPOOR KAPOOR
Hotel Hotel Taj Mahal Mahal Palace, Palace, Mumbai Mumbai
SH. PRANAB MUKHERJEE
Dr. Rana Kapoor,
Summit Chairman, and Founder, Managing Director & CEO,
YES BANK moderating an exclusive interactive discussion with
Shri Pranab Mukherjee,
Honourable Finance Minister, Government of India
discussing contemporary issues of relevance in India’s growing financial sector

Kaushik Basu
Chief Economic Advisor
Ministry of Finance,
Government of India
K C Chakrabarty
Deputy Governor
Reserve Bank of India
Usha Thorat
Director, Centre for Advanced
Financial Research and
Learning (CAFRAL), India
Keynote Speakers
Jyrki Koskelo
Special Advisor to
Executive Vice-President
and CEO, IFC
Johnny Akerholm,
CEO, Nordic Investment Bank
Muhammad Ali,
Chairman, BRAC Bank
Abdulla Mohammed Al Awar,
CEO, DIFC Authority
Robin Banerjee,
Chief Financial Officer, Suzlon Group
A.K. Bansal,
Executive Director, Indian Overseas Bank
Saurabh Bhat,
President and Managing Director, Development &
Sustainable Banking, YES BANK
Sonjoy Chatterjee,
Chairman, Goldman Sachs India
Prabhu Chawla,
Editor-in-Chief, New Indian Express
Stuart Davis,
CEO, HSBC India
Ajay Desai,
Chief Financial Inclusion Officer, YES BANK
Michael Jude Fernandes,
Executive Director, Investments,
Khazanah Nasional
Akhil Gupta,
Chairman, Blackstone India
Partha Iyengar,
Vice President and Distinguished Analyst, Gartner
Umesh Jain,
Chief Information Officer, YES BANK
Manish Khera,
CEO, FINO
Matthew Kirkby,
Head-Global Banking, Asia Pacific, Global Head
of Corporate Finance, RBS
Suresh Kumar,
CEO, Emirates Financial Services
Subir Gokarn
Deputy Governor
Reserve Bank of India
John Lipsky
Special Advisor to the
Managing Director
International Monetary Fund
Other Valued Speakers
Lord Meghnad Desai,
Emeritus Professor, London
School of Economics and
Political Science
Jaime Caruana
General Manager, Bank
for International
Settlements
Y.V. Reddy
Former Governor
Reserve Bank of India
Heidi Miller,
President of International, JP Morgan Chase
Rajat Monga,
Group President & Chief Financial Officer, YES BANK
Thierry Monjauze,
Head of European Operations, Harris
Williams & Co.
M.V. Nair,
Chairman and Managing Director, Union Bank of India
M. Narendra,
Chairman & Managing Director, Indian Overseas
Bank
R. Jaideep Poondir,
Vice President, Delivery Head - Banking and
Financial Services, Cognizant
C.N. Ram,
Co-Founder, Rural Shores, and CIO, Essar Group
Shubhada Rao,
President and Chief Economist, YES BANK
Vaughn Richtor,
CEO, ING Banking Asia
Aditya Sanghi,
President and Senior Managing Director,
Investment Banking, YES BANK
R. Seetharaman,
CEO, Doha Bank
Sunil Soni,
Principal Secretary, Finance (Reforms), Government
of Maharashtra
Anuj Vaid,
General Manager and BFSI Vertical Head, Wipro
Infotech
Etienne Viard,
CEO, PROPARCO
3

Welcome Remarks
The idea of having an International Banking Summit
has been conceived by the team at YES BANK and
Rana Kapoor
Summit Chairman &
Founder, Managing Director and CEO
complemented brilliantly by Financial Times. This is the
inaugural session, and I would like to welcome all the
dignitaries and delegates for this first-of-its-kind global
banking Summit in India. While we are facing global
uncertainties, we have been able to mobilize over 40 eminent
speakers and over 1000 delegates from all parts of the world
for this Summit in India. India, at this time of its life cycle, is
presented with a unique opportunity in adversity driven by its
growing economy, favourable demographics and progressive
YES BANK
reforms being undertaken by the Government. The Indian
financial sector has undergone significant transformation and
global integration, under the able guidance of the Reserve Bank of India (RBI). The second generation reforms,
including the recent deregulation of the savings rate, opening of branch licensing, etc. are game changers which
will facilitate the shift from lazy banking to dynamic banking. The sessions over the next two days will provide a
unique platform for the international financial sector, to build mutually symbiotic models through strategic
alliances and shared models.
The discussion comes at an important time,
particularly considering the uncertain global economic
environment. Back in India, the economy has shown resilience
during the crisis period and shown good growth. While the
Indian financial system was appreciated for its prudence, it
also needs to be equally expansive and inventive. There is a lot
to learn from the Indian banks including low cost innovation
considering the size and diversity of the nation. Over the next
two days we will hear leaders from the global financial
industry on all these aspects. I would like to thank our partner
YES BANK and Dr. Rana Kapoor, for his support towards the
Summit.
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James Lamont
South Asia Bureau Chief
Financial Times

Commentary by Dr. Rana Kapoor
Founder, Managing Director & CEO, YES BANK
Taking Indian Banking to the World
Encouraged by the highly positive feedback from all
stakeholders and encouragement from Hon'ble Finance Minister,
st
Shri Pranab Mukherjee, we have, today, inaugurated the 1 FT-YES
BANK International Banking Summit in Mumbai - the financial
capital of India.
It gives me immense pleasure to advise you that the Summit
received an overwhelming response from world over.
As the Summit Chairman, I would like to personally thank all the
dignitaries from the Government, Corporate and Thought Leaders
for their active participation and contribution to the first-ever FT-YES BANK International Banking Summit in
Mumbai, which was by all measures a resounding success. The spirit, energy and enthusiasm throughout the
sessions was remarkable, and provided a renewed sense of optimism and a clear set of recommendations for
addressing some of India's most pressing financial sector challenges. I also take this opportunity to thank all our
partners as it is their belief and support without which this event would not have been such a great success.
One of our key objectives at this Summit was to create a world-class platform for Indian Banking amongst
International audiences. We have, through this forum, tried to bring together the key decision-makers to assess the
latest global and domestic challenges facing India's financial industry and explore how they can be turned into
opportunities for local and foreign institutions in one of the world's fastest growing economies.
As discussed during the Summit, the fundamental growth aspects of Indian economy remain strong, and the
financial sector has to maintain its growth pace with the economy. While prudent regulatory oversight from RBI
over the last decade has successfully steered Indian banks towards robust health and performance, the financial
sector now looks forward to a decade that is full of opportunities.
As the financial sector Maximises the Future Opportunities in India's Fast-Growing Financial Sector, it is also
imperative for the financial sector to work towards the sustainable and balanced growth of the economy. I believe
that product innovation with prudential norms will be key, as the financial sector fuels the growth of the real
economic sectors of the country.
“One of our key objectives at
this Summit was to create a
world-class platform for Indian
Banking amongst International
audiences”
This Summit has been conceived as an annual event, and we do
hope to take this event to not only become one of the foremost
Summits in India but a renowned one internationally, as far as the
Indian banking sector is concerned. The quality of delegates,
world-class speakers and extensive visibility created both in India
and globally has been tremendous, and we hope to keep raising
the benchmark each year.
5

Exclusive Interactive Discussion with the Hon’ble Finance Minister of India
6
Shri Pranab Mukherjee
Hon’ble Finance Minister
Government of India
I am very happy to join you all at the first Financial
Times-YES BANK International Banking Summit, even
though it is only in a virtual sense. Let me begin by
congratulating Dr. Rana Kapoor and his partners for
organizing this Summit and bringing together distinguished
panel of bankers, financial experts, investors, policy makers
and regulators to deliberate on contemporary issues of
relevance to India's growing financial sector. I am happy to
see the themes such as banking reforms, cross-border
strategic alliances and rural development and financial
inclusion that you have addressed in your discussion over the
two days of the Summit.
The Indian financial sector has seen significant
transformation, rapid growth and global integration over the
last decade. The banking sector has shown great resilience in the course of the global financial crisis and its
continuing aftermath. The fact that India has not gone through any major financial turbulence, as a result of the
earlier phase of financial deregulation is a testimony to
our consistent view that reforms in global standards
have to be adapted to local conditions.
The economic reforms initiated during the early 1990s
have borne good results for the Indian economy. The
economy has moved on to a higher growth trajectory,
with improved fundamentals and resilience to external
and domestic shocks.
The basic objective of the financial sector reforms has
been to promote a diversified, efficient and competitive
financial system, with the ultimate objective of
improving the allocative efficiency of resources. This has
“Congratulations to Dr. Rana Kapoor
and his partners for organizing this
Summit and bringing together
distinguished panel of bankers,
financial experts, investors, policy
makers and regulators to deliberate on
contemporary issues of relevance in
India's growing financial sector”
been sought by ensuring greater operational flexibility, improved financial viability and strengthening of
regulatory institutions. The reforms were carefully sequenced in respect of policy instruments and in terms of
specific objectives that had to be addressed.
We have taken steps in recent months, to take this process forward. Legislations have been introduced in the
Parliament to address some issues in the financial sector including insurance, banking, and pension sectors. We
have set up Financial Sector Legislative Reforms Commission to review financial sector laws with the objective of
bringing them in tune with current requirements and global best practices. An apex-level Financial Stability and
Development Council has been established and is functioning to strengthen and institutionalize the mechanisms
for maintaining financial stability and improving the inter-regulatory coordination.
In the post-crisis period, financial stability has become an integral part of policy discussions and macroeconomic

objectives globally. A sound and resilient banking sector,
well-functioning financial markets, robust liquidity
management and payment and settlement infrastructure
are the pre-requisites for financial stability.
The second generation reforms currently underway have
been built on the reforms over the past two decades. It
includes the recent deregulation of the savings interest
rate, discussions on mode of presence of foreign banks
and the process to give additional banking licenses to
private sector players. These steps seek the
transformation of the Indian banking sector into a reasonably strong, diversified and resilient system with
significant opportunities for growth.
The evolving circumstances present several challenges in the short to medium-term. We need to sustain the
momentum of expansion in domestic banking services, even as global growth is weak and is laden with
uncertainties. The possibility of systemic impact of sovereign debt crisis in Euro-zone countries on international
financial markets is a looming reality. We also need to overcome domestic concerns including those related to
capitalization issues of the public sector banks and the threat posed by their growing non-performing assets.
The aim of Basel III is to improve the banking sector's ability to absorb shocks arising from financial and economic
stress, thus reducing the risk of spill-over from the financial sector to the real economy. Basel III also seeks to
strengthen micro prudential regulations which will help raise the resilience of individual banking institutions in
periods of stress. Sufficient cushion is available with Indian banks to absorb the enhancement in the equity and Tier I
capital requirements as per Basel III. Following my Budget Speech 2011-12, the Government is committed to enable
Public Sector Banks to maintain a minimum Tier-I CRAR of 8 per cent.
As banking becomes more sophisticated in a complex globalised market, there is a need for improving the skill and
knowledge set of bank employees. There has to be a constant effort to understand the functioning of the financial
markets, the best practices that underpin the creation of new financial products and the related oversight issues, so as
to promote financial stability for sustained growth.
As part of the efforts to ensure convergence of the Indian Accounting Standards (IASs) with the International
"Financial Reporting Standards (IFRSs), a roadmap for convergence of IAS with IFRS for banking companies and
non-banking financial companies (NBFCs) has been finalized.
Financial inclusion is an important development priority of the Government. Only about 38 per cent of Scheduled
Commercial Bank branches are in rural areas and just
about 40 per cent of country's population has bank
“A sound and resilient banking sector,
well-functioning financial markets,
robust liquidity management and
payment and settlement infrastructure
are the pre-requisites for financial
stability”
“Entry of new banks, both Indian and
foreign, would increase competition in
the banking sector with attendant
benefits in the form of improved
efficiency in banking intermediation and
encouraging product innovation and
development”
accounts. We are presently working towards covering
around 73,000 villages with a population of 2000 or more
by March 2012 under our financial inclusion initiative. As
of September 2011 we have already covered 40,000
villages.
Up-scaling of financial inclusion efforts is essential for
banks, as it embodies the potential for augmenting
7

growth prospects in terms of enhancing bank savings and financial deepening. At the same time it would contribute
to a more inclusive development of the economy.
Expansion in banking services is a critical ingredient for sustaining high economic growth. Entry of new banks, both
Indian and foreign, would increase competition in the banking sector with attendant benefits in the form of improved
efficiency in banking intermediation and encouraging product innovation and development. These in turn, would
contribute to better growth prospects for the banks and the economy. Indian Banking has to be receptive to and
proactive in harnessing this opportunity.
Let me conclude by thanking the Financial Times and YES BANK for giving me this opportunity to share some of my
views with distinguished participants who have given me a patient hearing. I hope your deliberations at the Summit
have been fruitful. I wish you all the very best in your endeavours.
8

Summit Chairs
Rana Kapoor is the Founder, Managing Director and CEO
of YES BANK. A professional entrepreneur, Dr. Kapoor
since 2003 has progressively established YES BANK as a
high quality, state-of-the-art private Indian bank with a
stated vision of “Building the Best Quality Bank of the World
in India” by 2015. Under his leadership, YES BANK has
evolved into a Professionals' Bank of India, adopting global
best practices and the highest standards of service quality
and operational excellence.
Rana Kapoor Prior to establishing YES BANK, Dr. Kapoor was CEO and
Summit Chairman &
Managing Director, and main Managing Partner of Rabo
Founder, Managing Director and CEO
YES BANK
India Finance Pvt. Ltd. (RIF), responsible for all its business
activities (Corporate Finance and Investment Banking). He
successfully spearheaded Rabo India Finance as a foreign
joint-venture financial-services organization in partnership with Rabobank (AAA-rated) in India, and thereafter
sold his shareholdings to Rabobank, Netherlands, in early 2003, after building RIF as a Professional Entrepreneur
(1998-2003).
Prior to starting Rabo India Finance in 1998, Dr. Kapoor was General Manager and Country Head of ANZ
Grindlays' Investment Bank from 1996 to 1998. Before that, he spent 15 years at Bank of America (1980-1995), where
he last headed the bank's wholesale banking businesses. In 1990, he was presented the Eagle Pin by the chairman of
Bank of America, the bank's highest professional recognition for consistent performance excellence.
Dr. Kapoor recently received the Entrepreneur of the Year award at the Asia Pacific Entrepreneurship Awards
2011. In March 2010, he was awarded the Entrepreneurial Banker of the Decade (2001-2010) by the Bombay
Management Association, and in November 2010, he was ranked the 2nd Most Valuable Indian CEO of the Year
(Mid-sized category) by Business World magazine. His other honours include a Doctorate in Science (Honoris
Causa) from G.B. Pant University of Agriculture & Technology towards his enormous contribution to the Indian
Food and Agriculture sector, and the Distinguished Entrepreneurship Award at the PHD Chamber Awards for
Excellence 2007. Dr. Kapoor received the President's Medal from Rutgers University in the US, where he earned an
MBA degree in 1980. He holds a Bachelor's degree in Economics from the University of Delhi in 1977.
9

Henny Sender joined the Financial Times in 2007. She was
previously the Wall Street Journal's Senior Special Writer for
the Money & Investing section and covered private equity
and hedge funds. Before joining the Journal, Ms. Sender
worked in Hong Kong for nearly 10 years and covered
regional finance for the Wall Street Journal Asia and the Far
Eastern Economic Review. Prior to that, she was in Tokyo for
five years for Institutional Investor. Ms. Sender was part of a
team at the Journal that won a Loeb award for coverage of the
meltdown of Amaranth, a hedge fund. Her work on the
overseas Chinese received a citation from the Overseas Press
Club and she was a finalist for the National Magazine
Awards. Her book on India, The Kashmiri Pandits,
was
published by Oxford University Press. Ms. Sender holds an
MS from the Columbia University School of Journalism. She
is a member of the Council on Foreign Relations.
10
James Lamont
South Asia Bureau Chief
Financial Times
James Lamont was appointed South Asia Bureau Chief for
the Financial Times in 2008, having spent four years as the
London-based World News Editor. Prior to this, he was the
FT Weekend News Editor and before that the Johannesburgbased
Southern Africa Correspondent. Before joining the
Financial Times in 2001, Mr. Lamont was Editor of Business
Report, South Africa's largest financial daily. He was Deputy
Editor of the Middle East Times in Cairo. He also reported on
oil and gas in the region for the OPEC news agency. Mr.
Lamont started his career in journalism writing for a UKbased
consumer magazine. He completed his first degree at
the University of York and did a postgraduate course in
Southern Africa studies.
Henny Sender
Chief Correspondent
International Finance, Financial Times

Day One, November 15, 2011
The Global Economic Outlook
Session Overview
Opportunities for India Banks – New Models of Growth
Sustaining Growth Through Banking Reforms
Cross-Border Strategic Alliances as a New Order of Business
Day Two, November 16, 2011
Rural Development and Financial Inclusion – A Policy & Business Priority
Creative Technology for Financial Efficiency and Superior Customer Experience
Opportunities in Sustainable Finance
Keynote Session with International Regulators
11

The Global Economic Outlook
12
Lord Meghnad Desai
Emeritus Professor, London School of
Economics and Political Science
While 1992-2007 was a long boom period for the world economy, post 2007 the economies are reeling under the
pressure, as we move into the fourth year of slow down
Previous recessionary cycles indicate that recessions typically last for 8-10 years, and as per the current trends,
the developed economies will not be able to catch up before 2015
Although, a profound transformation is being witnessed in the global economy with shift in tectonic plates,
the centre of economic gravity is shifting from mid-Atlantic to Central Asia, and now further moving
Eastwards
During the growth period, the emerging economies over-saved and actually funded the consumption of the
under-saving developed economies. This is not sustainable anymore
Savings from the emerging economies need to be deployed efficiently and given limited opportunities in the
developed economies, there is a need to facilitate trade among intra emerging economies as the next lever of
growth
On the current sovereign debt crisis: no sovereign debt is actually sovereign, and there are no risk free assets
now. This can only work in a closed economy. Internationally, the monetary systems need to be revamped and
alternate means of payments and store of value should also be looked at

Opportunities for India Banks – New Models of Growth
After the crisis, banks face a world of increased regulation, complexity, risk and capital requirements. Profitability
has been further hurt by the drying up of lucrative sources of fee-based income. It has become essential to explore
new models of growth. In the new global economic order, India-related trade and investment opportunities are
projected to increase multi-fold – both inbound & outbound. The domestic demand-driven economy is also
creating unprecedented need for consumer banking solutions at all levels of the income pyramid. How should the
Indian banking sector – public sector undertaking banks (PSUs), private banks and multinational banks – respond
to these opportunities across trade, investments and payments? What will be the impact of the likely ballooning of
trade between emerging markets, and how will that affect developed economies and MNC banks in particular?
Keynote Speaker
Both finance capital and human capital are going to be stretched
in the coming times. Also, with the BASEL III norms being implemented
by banks, capital will further get stretched. However, there will be
numerous opportunities for the Indian banking sector with the evolving
income pyramid and inherent demographic advantage. The challenge
here would be how to address the diversified needs of the consumers
through new and innovative models of growth
Panel Discussion
Dr. Subir Gokarn
Deputy Governor, Reserve Bank of India
Seated L to R: Suresh Kumar, CEO, Emirates Financial Services; M.V. Nair, CMD, Union Bank of India; Subir Gokarn, Deputy Governor,
Reserve Bank of India; Rana Kapoor, Founder, Managing Director & CEO, YES BANK; Sonjoy Chatterjee, Chairman, Goldman Sachs India;
James Lamont, South Asia Bureau Chief, Financial Times
13

Session Takeaways
14
There was a convergent opinion of the panel on the opportunities and new sustainable models of growth:
SME and MSME Financing – They form the backbone of any economy, and in the context of India, there
is a need for structured credit products designed specifically to address the Indian market
Infrastructure Growth – Investment in the infrastructure sector is expected to go up to a trillion dollars
over the 12th five year plan, and the key here for financial institutions will be to devise innovative
financing models and manage Asset-Liability Management (ALM) risks on the balance sheet
Trade Financing – While India’s share in global trade has increased, the share of Indian banks in trade
finance has not increased correspondingly. Going forward, this will be a focus area for Indian banks
Banking the Unbanked – Brick and mortar banking has not been able to create adequate banking
penetration as it is expensive and inefficient to target population in the lower income groups.
Technology will act as a key enabler to achieve cost efficiencies, and accelerate scaling up of new
business models. This, supplemented by major initiatives such as the implementation of the Unique
Identification (UID) project will significantly reduce cost of acquisition for banks, and help achieve
financial inclusion objectives
Innovative models that banks will adopt - Transforming cost base to asset light models through
outsourcing, developing cost efficient leaner organizations, forging strategic partnerships/ alliances,
and developing an optimal mix of distribution channels
Following the recent path-breaking reform on Savings Rate Deregulation introduced by the Government of
India, other key game-changers needed are:
Further to deregulation of Tier II to Tier VI licenses, there should be calibrated deregulation of Tier I
branch licenses linked to the branches in Tier II to Tier VI
The current PSL obligations could be redefined and banks should take it as a socially responsible activity
that is economically viable and commercially feasible
While maintaining the overall safety net, the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio
(SLR) should be managed such that the depositors money is used more efficiently

Sustaining Growth Through Banking Reforms
The Indian economy is expected to grow at over 8% per year over the next decade. To sustain this growth the
financial services sector needs to expand in parallel and act as the engine for development. Deeper and more liquid
capital markets are needed to finance a required US$1 trillion worth of infrastructure spending over the next five
years. The Reserve Bank of India has already suggested that foreign banks could be allowed to operate via whollyowned
subsidiaries, rather than headquarter branches, to allow them to offer new financial products and expand
into new markets. What impact will these changes have on competition with domestic banks, particularly on loans
and offerings such as insurance and capital market instruments? What level of liberalisation, and across which
sectors, would be required to meet the growth targets set out by the government; and what would be the impact on
the economy should liberalisation come to a halt? What reforms are required to allow domestic institutions to
facilitate growth hand-in-hand with foreign partners?
Keynote Speaker
A vibrant banking and financial sector is essential for the
growth of the real economy. While currently ~70-75% of Indian banking
is state run, there is a trying need for private banks to take a larger share
of the Indian banking industry. On regulatory reforms, my opinion is
that good regulation is a matter of balance that keeps on evolving and
should be designed in a way that keeps the real sector growing and
thriving
Panel Discussion
Dr. Kaushik Basu
Chief Economic Advisor, Ministry
of Finance, Government of India
Seated L to R: Rajat Monga, Group President & CFO, YES BANK; Heidi Miller, President of International, JP Morgan Chase; Kaushik Basu,
Chief Economic Advisory, Ministry of Finance, India; Henny Sender, Chief Correspondent, International Finance, Financial Times; Johnny
Akerholm, CEO, Nordic Investment Bank; Stuart Davis, CEO, HSBC India
15

Session Takeaways
16
There is a huge opportunity cost for lack of reforms. Deregulation of the financial sector should take place at
the right time for India to realize its true potential.
Borrowing costs remain high in India and there is a need for additional capacity creation
Asian papers carry a strong demand globally. If the environment is conducive, there will be no dearth of
capital coming into India
Some key reforms required include:
Innovative ways of financing infrastructure would be required to keep pace with India’s economic
growths
The large investments required for infrastructure development in India would need various foreign
sources of capital as domestic savings alone may not be sufficient
Efficient deployment of long term savings such as pension funds that are currently being managed
defensively
Reforms are required both on the supply side as well as the demand side. Public Private Partnership
(PPP) models that have worked well for the roads sector, should be replicated for other infrastructure
sectors as well
Development of the long term bond market
For SMEs, while there is systemic support, capital market reforms such as success of the SME exchange
can reduce cost of capital
Further granularity in the credit ratings would be required for better risk assessment by banks
Other sectoral reforms that are currently in the pipeline include Foreign Direct Investment (FDI) in the
retail sector, Goods & Services Tax (GST) etc.
With increasing pressure on healthy capitalization of banks, risk weighted assets are expected to be run
down globally
On a specific question related to using interest rate as a tool to fight inflation, Dr. Basu commented “In the
current global scenario where interest rates across various economies are significantly different, we can look
at other experimental models”

Cross-Border Strategic Alliances as a New Order of Business
Indian companies are increasingly expanding abroad through exports, nearshoring, M&A and other channels. In
parallel, a large number of global firms are investing in the India growth story beyond simple sourcing of goods
and services. Is the banking sector sufficiently geared to support these increasingly complex global aspirations or is
there specific support required from government and regulators to increase competitiveness? With increasing
regulation and protection, what kind of global alliances can be formed to serve clients better?
Keynote Speaker
There is an accelerated shift to Emerging markets. The time
taken will be a lot sooner than most will realize. Emerging markets are
buying assets, both South-South and South-North. What they
thought would take them 10 years or more to achieve is taking them
only 5 years to accomplish. Even though India has a strong domestic
sector, it is not isolated, do not be fooled into believing in de-coupling.
Look ahead 10 years; the world is changing, the emerging markets
will be a lot more powerful, and carry a lot more weight
Panel Discussion
Jyrki Koskelo
Special Advisor to Executive Vice
President and CEO, IFC
Seated L to R: Aditya Sanghi, President and Senior Managing Director, Investment Banking, YES BANK; Vaughn Richtor, CEO, ING
Banking Asia; Abdulla Mohammed Al Awar, CEO, DIFC Authority; Henny Sender, Chief Correspondent, International Finance, Financial
Times; Thierry Monjauze, Head of European Operations, Harris Williams & Co.; M. Narendra, Chairman & Managing Director, Indian
Overseas Bank; Matthew Kirkby, Head of Global Banking, Asia Pacific, and Global Head of Corporate Finance, Royal Bank of Scotland
17

Session Takeaways
18
With a fast growing economy and stronger balance sheets, Indian Corporates are looking at inorganic
growth to move up the value chain, access new markets and acquire technologies
As Indian companies have been able to attract high quality foreign capital, the credibility of Indian
companies has significantly improved, resulting in better Merger & Acquisition (M&A) prospects
To meet the global aspirations of Indian Corporates, the Indian banking sector needs to gear up and also
increase its presence in foreign countries
Experiences of large foreign banks show that physical presence in all countries may not be the most feasible
solution, and strategic alliances are better suited for certain markets. Many Indian banks have taken this
route by entering into strategic alliances with key local players in the foreign markets
Extensive due diligence and ensuring a cultural fit leads to Indian companies being relatively more
successful in M&As
There is higher trust between companies of economies with similar culture and good trade relationships,
which leads to long term successful strategic alliances

Rural Development and Financial Inclusion – A Policy and Business Priority
India’s economic growth rate has surged since the country began reforming its economic, financial and industrial
sectors in the 1990s. India is today considered the ninth-largest economy in the world by nominal GDP and the
fourth-largest by purchasing power parity (PPP). But is this economic growth reaching the disadvantaged of India,
of whom the majority live in its villages? India’s rural areas represent both a challenge and an opportunity for
companies and financial institutions. On the one hand, as rural incomes improve, they offer a pent-up demand for
basic and consumer goods. On the other, a significant portion of the rural population remains excluded from basic
infrastructure and services, including power, roads and banking. The government has made rural development
and financial inclusion a policy priority. To what extent will new players help to modernise infrastructure and
services for the rural areas? How will institutions be persuaded to provide for, and service, underprivileged rural
communities rather than the more affluent urban residents? What global models and success stories from other
developing economies can be adopted in India?
Keynote Speaker
Financial inclusion is a global phenomenon and not limited
to India alone. Globally, economies are struggling to provide
appropriate banking services to the financially excluded. While the
financial sector and the Indian Government are taking progressive
steps, it is a collective responsibility of the society as a whole to achieve
inclusive growth
Panel Discussion
Dr. K C Chakrabarty
Deputy Governor, Reserve Bank of India
Seated L to R: Prabhu Chawla, Editor-in-Chief, New Indian Express; Muhammad Ali, Chairman, BRAC Bank; K. C. Charkrabarty, Deputy
Governor, Reserve Bank of India; Ajay Desai, Chief Financial Inclusion Officer, YES BANK; Sunil Soni, Principal Secretary, Finance
(Reforms), Government of Maharashtra; Manish Khera, CEO, FINO; James Lamont, South Asia Bureau Chief, Financial Times
19

Session Takeaways
Overall the panel was of the view that growth with equity and justice is critical for sustainable economic
development. Though there is no short cut to achieve this, an optimal mix of low cost channels (BC, Mobile
banking, Branches, etc.), led by banks and supported by the regulator and Government, will be required.
20
It will be banks that will drive financial inclusion in India, as they provide a full suite of banking products to
customers
Private banks will have a larger role to play by deploying innovative operating models that are economically
sustainable and commercially viable
Banks should consider financial inclusion as an investment, rather than an expense
Microfinance has delivered results in providing micro credit products to the unbanked and will further
facilitate financial inclusion, though it will mainstream banks that will play a major role
Financial literacy of the end-customer will be critical and equally important
Technology will be a key vehicle to achieve inclusion objectives, by reducing costs and hence making
inclusive growth more viable. With increasing penetration, the mobile phones can actually become a “silver
bullet” to achieve inclusion

Creative Technology for Financial Efficiency and Customer Experience
Liberalisation and the entry of new banks brought a rapid development of technology that has changed the way
banking operates in India. Technology continues to play a significant role in the competitiveness of a bank’s
business, affecting both the front and back ends, including product development, access to money, trading and
settlement, risk management, geographical reach and many other key areas. India today has one of the best
payment infrastructures in the world. With data security now of paramount importance, the RBI recently ordered
all banks to create CIO positions. What impact will the added security regulations have on bank operations? What
are the global trends and standards of excellence in data security and alternate banking mediums? How advanced
is India’s banking technology and can the country take a leading global role in this area? With the increase in
penetration of internet connectivity and mobile phone services, how will customer acquisition, fulfillment and
servicing change?
Panel Discussion
Seated L to R: Umesh Jain, Chief Information Officer, YES BANK; Anuj Vaid, General Manager and BFSI Vertical Head, Wipro Infotech;
Jaideep Poondir, Vice President, Delivery Head - Banking and Financial Services, Cognizant; C.N. Ram, Co-Founder, Rural Shores, and CIO,
Essar Group; A.K. Bansal, Executive Director, Indian Overseas Bank; Partha Iyengar, Vice President and Distinguished Analyst, Gartner;
James Lamont, South Asia Bureau Chief, Financial Times
21

Session Takeaways
Technology has changed the way banking is done. Banks that adapt and provide solutions the fastest will be most
successful
The role of the CIO is evolving to being an equal partner with the CEO and getting more involved in
implementing action oriented solutions for all businesses
Technology adoption by banks is being driven by the demanding customer, increasing competition, and
regulatory interventions:
With the changing customer landscape that is moving to the virtual world, it is imperative for banks to
reach out to their customers through alternate channels
Customers today need a 360 degree view of their multiple portfolios across various financial institutions.
Technology has the capability to provide such an integrated view/ dashboard to the customers for quick
analysis and decision making
Many banks are considering and deploying new technology enabled models such as private cloud
systems to reduce costs
Regulatory interventions and policy measures such as Core Banking Solutions (CBS), internet banking
etc. have given a thrust to banks for technology adoption
Technology with relationship is a strong combination and will be a key differentiator for banks
Banks are moving from storing piles of data to transforming it into intelligent insights. Most banks today
have active business analytics units that support the relationship and risk teams
The global crisis may actually push banks in western economies to move to technology enabled cost efficient
operating models. Further, many banks are looking for outsourcing of mid and back office operations. This
will create significant opportunities for the technology companies
Overall the panel was of the view that brand, trust and technology will be the three key pillars that will define the
future of banking.
22

Opportunities in Sustainable Finance
The need to reduce carbon emissions and save energy has created a clean technology industry that needs massive
financing. Similarly, rapid urbanization has accelerated the urgent need for infrastructure development across
India, and there is a very large financing gap that needs to be filled. The fight against poverty also requires
significant support from banks at the Base of the Pyramid. What obstacles have to be overcome for banks to play a
full role in these crucial areas? Are there any foreseeable government mandates that would impact the banking
industry and its view on clean tech financing? Is viability assured? Are there sufficient government incentives for
banks to enter public-private partnerships?
Panel Discussion
Seated L to R: Michael Jude Fernandes, Executive Director, Investments, Khazanah Nasional; Saurabh Bhat, President and Managing Director,
Development & Sustainable Banking, YES BANK; Akhil Gupta, Chairman, Blackstone India; Henny Sender, Chief Correspondent,
International Finance, Financial Times; Robin Banerjee, Chief Financial Officer, Suzlon Group; R. Seetharaman, CEO, Doha Bank;
Etienne Viard, CEO, PROPARCO
23

Session Takeaways
Given a viable project, the panelists’ viewpoint was that there are abundant funding options available from private
equity players, banks and development institutions
24
The panel comprised of leaders from the banking sector, private equity firms, development institutions and
the industry
Two broad discussion areas covered: a) financing sustainable industries such as wind power, solar energy
etc, and b) financing that is sustainable to all stakeholders
From the industry perspective, post 2008, financing has been a challenge, though good projects have been
able to attract investors
Development of sustainable sectors requires significant support from the Government. Some initiatives
taken by the Government include capital subsidy scheme for mega food parks, tax incentives etc.
There is higher perception of risks associated with Indian companies in sustainable sectors. This is primarily
due to lack of data and the industry being at a nascent stage. Industry and financial institutions look forward
to a consistent and transparent policy framework from the Government
Banks and Financial Institutions are under pricing the project risk as there is a deficiency of good bankable
projects in sustainable sectors, and high competition among financial institutions for these projects. Some
banks are developing knowledge expertise to mitigate these risks and obtain better returns through
“Knowledge Arbitrage”

Keynote Session with International Regulators
International regulators share their insights on the latest global moves to regulate financial institutions, and how
this will impact banks in fast-growing emerging economies like India. Basel III in particular has come under great
scrutiny in Europe and the US. How can such rules on capital ratios and risky assets be applied effectively to banks
in emerging markets? Should banks in emerging markets be governed by a different common regime of
international standards? What is the best way to regulate banks in economies that are still developing and where
liquidity is crucial to boost growth? Is the global financial system any safer now than when the financial crisis broke
in 2008?
Panel Discussion
Seated L to R: Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL), India; Y.V. Reddy, Former Governor,
Reserve Bank of India; Henny Sender, Chief Correspondent, International Finance, Financial Times; John Lipsky, Special Advisor to the
Managing Director, International Monetary Fund; Jaime Caruana, General Manager, Bank for International Settlements
25

Session Takeaways
The panel comprised of eminent regulators from India and across the world
26
Post the financial crisis, globally, regulators have taken a cooperative approach on macro policies, and
regulatory frameworks are being revised accordingly. One of the key lessons from the financial crisis is to
create countercyclical capital buffers during good times through fiscal and monetary policy measures
Overall the panel believed the world is a safer place today than in 2008. However, the key risk today is the
sovereign risk, and fragility within the intertwined financial system. Restoring the risk free status of the
sovereign will be a huge challenge
New regulatory framework is already under implementation and covers various aspects like quality of
capital, trade of complex products, liquidity ratios etc.
Same regulations produce different results in different economies, and a key reason for this has been
different implementation and supervision mechanisms adopted by various countries. Further, the panel was
of the view that identifying systemic risks being developed in the financial system will be a major challenge
for the supervisors
The Indian banking sector is better capitalized and is at an advantage as compared to its global counterparts

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Testimonials
It was a fantastically organized event & was very useful and interesting indeed.
Anirudh Kashyap, Cushman & Wakefield
“Outstanding selection of speakers covering in-depth subjects. Such a Summit should be held
semi-annually. Compliments to YES BANK and FT on arranging this event.”
C.A. Rajesh Chaturvedi,
Director, Allahabad Bank
I appreciated your efforts to conduct such a seminar. It was indeed excellent. No word to explain
the greatness of the function. You have got a great vision.
P.S. Viswanathan, Saudi Hollandi Bank H.O., Riyadh
“Excellent all the way – excellent arrangements, very well marketed, implemented professionally
with clockwork precision. “
K P Ramakrishnan, Chief General Manager, IDBI Bank
“I was privileged to have an opportunity to listen to excellent speakers like Lord Desai, Kaushik
Basu, Subir Gokarn, KC Chakrabarty and others. Panel discussions beautifully moderated.
Excellent Forum for effective networking – met some very interesting professionals. Great Event.”
S K Banerji, Chief Industry Officer, IIFM
Congratulations, it was a really interesting event! I look forward to the next edition.
Massimiliano Altabella, Banca Monte dei Paschi di Siena SpA
“Content was excellent. Speakers especially Lord Desai and Mr. KC Chakrabarty were
Outstanding. An overwhelming response to the Summit.”
Balkumar Agarwal, Director, Motilal Oswal Financial Services Ltd.
“Summit organization was excellent. Special thanks to Dr. Rana Kapoor and his team for close
connects with each and every participant.”
Krishna H Mankad , Retired Director, Reliance Infrastructure Ltd.
“Extremely interesting and well-organized summit. Topics were very well chosen and panelists
represented a broad range of speakers interesting to everybody”
Aleksi Hokkanen , Researcher/Lecturer, University of Helsinki
Thanks to you and the summit, we could understand the status quo of India and are fully
convinced that there are a lot of opportunities in the near future.
Hitomi Sato, Shinsei Bank Ltd

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