2011 Summary can be downloaded HERE - FT Live

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