Bank of Maharashtra was founded by a group of visionaries led by the late V. G. Kale and the late D. K. Sathe and was registered as a banking company on 16 September 1935 at Pune with an authorised capital of Rs one million, and began business on 8 February 1936. After nationalisation in 1969, the bank expanded rapidly. The bank has provided financial assistance to many small units across the country thereby giving birth to many industrial houses today. The vision of the bank is to be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing shareholder and employee value while moving towards a global presence.
Tell us about your family background.I come from a conservative middle-class family in Uttar Pradesh. My father worked in a textile company, who retired in 1981. My mother was a homemaker. I have five brothers who coincidentally are all bankers. I always wanted to make it big and worked very hard for it. My wife works for Power Grid Corporation in New Delhi. We have a daughter, who did her schooling from Mumbai and Delhi. She did her Masters from Birla Institute of Management Technology and is now working with a multinational company in Gurgaon.
Take us through your education background and your careerI did my schooling and Bachelors in Science (Physics) in Delhi. Later, I did my Masters in Science (Physics) from the University of Delhi. I have also done my LLB, CAIIB & Diploma in Banking. I took over as Executive Director of the Bank of Maharashtra on 31 December 2013. Prior to joining the bank, I was associated with Dena Bank from May 1983 to December 2013 where I was working as the General Manager in Mumbai since April 2009. I was heading various verticals like credit, retail, MSME and priority sector there. I worked as the regional head in Pune, Surat and Delhi. I also had a stint with Canara Bank, from February 1980 to May 1983. I got an opportunity to attend various seminars and conferences in India and abroad during my tenure.
You did your Masters in Physics…then how did banking happen? What inspired you to be a banker?I come from a family of bankers. All my siblings were part of various banks. Yes, while I did have an option of becoming a professor, I too, like them, decided to join a bank. After so many years in the banking industry, I must say it has been a fulfilling experience.
Take us through the performance of the bank and the way forward. Also take us through your branch network.If you see, at the end of December 2014, our net interest margins improved to 2.85 per cent, for nine months 2014-15, as against 2.76 per cent for the same period, previous year. Today, we have about 1871 branches and about 1848 Automated Teller Machines (ATMs) across the country. The bank’s total business stood at `2, 12,650 crore as on December 2014. Our total business has increased by `10,489.59 crore from `2, 02,160 crore as on 31 December 2013.
Total deposits of the bank has risen by `5,176 crore to `1, 19,650 crore as on December 2014, from `1, 14,474 crore as on December 2013. CASA Deposits have risen by `3,222 crore to `41,521crore as on December 2014. At the same time, gross advances have increased from `87,685.86 crore to `92,999.75 crore in for nine month ended December 2014. We will be focused on increasing our bottom-line and reducing NPAs in this fiscal year.
What, according to you, are the challenges in the banking sector today and what are the ways to overcome it?Over a period of time, the banking industry has encountered various challenges but today, the main concern bothering the banking sector is the rise in Non-Performing Assets (NPAs). The industry has to see ways and means to recover existing NPAs. This has mainly piled up on account of the economic slowdown.
"Over a period of time, the banking industry has encountered various challenges but today, the main concern bothering the banking sector is the rise in NPAs. The industry has to see ways and means to recover existing NPAs. This has mainly piled up on account of the economic slowdown"
Which of the areas are you seeing stress in your portfolio?We have seen a rise in Non-Performing Assets in infrastructure lending, namely steel, cement, textile and EPC (engineering, procurement and construction) contractors. Growth in retail NPAs has not been alarming and within our control. Yes, growing NPAs in the SME sector is also a concern. This is mainly on account of the recent slowdown and slow economic growth that has affected demand. We have constituted a high level committee to see how this challenge of the growing NPA can be met. That apart, we are also focusing on growing our bottomline and building the business.
We may hire about 1,000-1,500 employees in 2015-16, across the board, depending on the requirements across sectors. We would like to be permitted to have placements from the National Institute of Bank Management (NIBM) and Institute of Finance, Banking & Insurance (IFBI). We have taken up this issue so that we can take candidates on board from these institutions.
Not yet. We are still waiting for the final decision. The bank would get second and fourth Saturdays off and work full day on the other Saturdays.
Any kind of competition is healthy. If you see, public sector banks are more bound by HRM (Human Resource Management) and social obligations than those in the private space…the level playing field is not the same for both. We have to abide by government directions as we are owned by them. Now that the Government has decided to let the heads of private sector banks come to big public sector banks as top chiefs, there will be some changes in the way of working. Talking about other initiatives like Jan Dhan Yojana and going to rural areas, public sector banks have definitely done a lot more than their counterparts.
While the Reserve Bank of India (RBI) has reduced interest rates twice recently, we are still seeing if we should slash lending rates because the benefit of lower rates cannot be passed on to the borrowers unless the cost of deposits comes down. We will first analyse the impact on the cost of deposits and then pass it on to our customers. Talking about interest rate cuts in future, the central bank will look at various factors like inflation, growth and then do the needful.
Take us through your treasury portfolio.With the central bank slashing interest rates, the yields have come down, so we made a lot of money on account of higher bond prices. We have a team of about 50 who work from our Mumbai office. We have our daily teleconferences, every morning with them, to discuss the portfolio.
Take us through your staff strength and hiring policy.Currently, we have more than 14,000 employees across India. We may hire about 1,000-1,500 employees, this financial year, across the board, depending on the requirements across sectors. While private sector banks can hire candidates from B-school campuses, we cannot do so. We would like to be permitted to have placements from the National Institute of Bank Management (NIBM) and Institute of Finance, Banking & Insurance (IFBI). We have taken up this issue so that we can take candidates on board from these institutions.
What is your take on youngsters today? What is that one piece of advice that you would like to give to the youth today?Youngsters today are very techno savvy. The level of knowledge is extremely high. However, this knowledge has to be channelised properly. They need to be more career oriented…instead of hopping jobs, they should try and stick to one job for fairly long time to gain experience… there needs to be more stability. They need to understand that money should not be the only criteria in one’s career. In fact there are times when I also have these tiffs with my daughter…there is certainly a Bank of Maharashtra headquarters at Pune generation gap. Their views, likes, are way too different from ours. The way youngsters perceive life is different… I think that’s how they are today.
Can you highlight some of the initiatives taken by your bank last year?We recently launched “Purple Privileges” accounts for high net worth individuals (HNIs) by assisting them with a dedicated relationship manager. We have also launched a mobile banking app, “MahaMobile” to enable our customers to view all their deposit and loan accounts, do fund transfers, bill payments and raise a variety of service requests on their mobile phone anytime, anywhere.
We also launched “Maha Secure” -- a next generation digital banking solution, secured by RELID Technology, a high end product introduced to attract technology savvy customers and youngsters.
How would you define your moment of glory?The first time, when I joined Dena Bank as a Probationary Officer. At that time, being a probationary officer was a symbol of status. Yes, each time I got promoted, it was a moment of glory for me.
What are your hobbies?I do read a lot of books, be it fiction, or business and management related books, and I also listen to music. I like to listen to instrumental music. I also watch a lot of movies and read while travelling. I am fond of Bollywood films and music too.
How do you balance work and home?My family is based out of Delhi and I work in Pune. I do visit them once or twice a month. Yes, I do miss them but my principle is that when I am at work, I am only focused on my work. That’s how I balance both ends.
By Mahalakshmi Hariharan
