Banking Conclave 2007: Globalisation and Financial Inclusion: New Age Indian Banking
June Session -June 15 -30, 2007

President Report

Banking Conclave 2007 is the flagship programme of FICCI Eastern Regional Council. In June , the conclave was addressed by Mr P.K. Gupta Chairman and Managing Director, United Bank of India and Mr S Sridhar, Chairman and Managing Director, National Housing Bank This year's theme is 'Globalisation and Financial Inclusion: New Age Indian Banking'

In a fast globalizing world where Indian Banks are swiftly expanding footprints abroad making significant improvements in all the areas relating to financial viability, profitability and competitiveness, they are unable to bring vast segment of the population, especially the underprivileged sections of the society, into the fold of the banking services particularly in rural India. Hence issues relating to "inclusive growth", distributive equity, "banking at the bottom of the pyramid", has increasingly come to the fore. The objective of the conclave is to deliberate on the prospects of growth of Indian Banking Sector t
hrough financial inclusion in this globalization era.

Shri C K Dhanuka, Chairman FICCI-ERC delivered the welcome address for both the sessions . Mr Dhanuka mentioned that Globalisation has acted as a powerful tool for unleashing India's capabilities in all fields whether they be economic, social or commercial. and the banking sector has a major role to perform in the growth process of Indian economy. It was suggested that Banks should continue to focus on rural banking and financial inclusion which is an essential in building economic development and ushering in greater economic and social equity

Session with Mr P.K.Gupta, CMD, United Bank of India- June 15, 2007

The Chief Guest was Mr P.K.Gupta, Chairman and Managing Director, United Bank of India. Mr Shashank Prashad, President, President, Tea Association of India proposed the Vote of Thanks

Unfolding UBI's future business strategy Mr P.K.Gupta said at this forum that the Bank is targeting a business mix ( deposits and advances) of Rs 72, 000 crore by the end of March, 2008. This will entail a 17% rise of deposits to Rs 43, 500 crore , while credit growth will be to the tune of Rs 28, 500 Crore. The Bank's credit- deposit ratio is also slated to go up to 65.5% from the current level of 61%. Mr Gupta also made a special mention of the fact that both the Tea Industry and UBI (with Rs 400 Crore exposure to the Tea industry) , have approached the Reserve Bank of India to rework its April Guidelines for priority sector lending which have restricted direct financing to corporates undertaking agricultural activities.

Session with Mr S. Sridhar, CMD, National Housing Bank - June 26, 2007

The Chief Guest was Mr S. Sridhar, Chairman and Managing Director, National Housing Bank. Mr Santosh Rungta, Co-Chairman - Committee on Real Estate - FICCI-ERC proposed the Vote of Thanks

Mr Sridhar stated that in order to provide ' affordable housing for all' National Housing Bank (NHB) is aiming to develop market based housing finance system focusing on unserved and underserved segments

Mr Sridhar mentioned that during 11th Five -Year plan the estimated housing shortage of the nation is 73.96 million and in rural areas it's 47.43 million . In order to meet this shortfall the sector requires an average investment of Rs 120, 000 Crore and Rs 400,000 Crore of advances from the Housing Finance Companies ( HFCs) and banks by the end of this period. Apart from these sources , Reverse Mortage Lending, Using Capital Markets through securitized debts, Refinance Options to Regional Rural Banks, Introduction of a scheme to supplement existing Indira Awas Yojna and a Composite Loan scheme in partnership with banks, microfinance institutes and self help groups are some of alternative means of housing finance proposed by the Bank . In order to reduce the shortage at 30 % a year National Housing Bank is targeting to disburse Rs 75, 000 Crore over the next three years. As a part of the NHB's drive to increase lending in rural areas , the bank is planning to invest upto Rs 25 crores to acquire 11% -26% stake, in HFCs that mostly operate in rural areas. The future plans of the Bank also includes formation of - mortgage guarantee insurance company; insurance-linked housing products; Residex- residence property price index and Indian Mortgage Lenders' Forum for producing certified mortgage counsellors who would be equipped to offer independent and fair advice on all real-estate and property related queries.

Both the sessions were well attended by over 100-150 participants comprising the members of FICCI Executive Committee, Affiliate Chambers, Bankers, Corporates, Real Estate Developers, Housing Finance Companies, Insurers, Brokers, Consulates and Media representatives. The event received excellent media coverage in print media such as The Economic Times, The Financial Express, The Telegraph, Business Standard, Hindustan Times, as well as in electronic media