Banking Transformation Summit: Pioneering India's economic voyage beyond $5 trillion

The CNBC-TV18 Banking Transformation Summit commenced on a captivating note. It aimed to uncover the link between India's economic growth and the changing face of its banking sector, all driven by the influence of digital technologies. At the summit, leaders from various industries, policymakers, and financial experts were present. Their purpose was to evaluate how the Indian banking sector has transformed and what's in store ahead by offering a complete view of the evolving landscape.

The uniqueness of this gathering lay in the fusion of experienced minds. These were the architects behind the noteworthy institutions that have shaped India's financial narrative. Collectively, they delved into a reflective journey, exploring the very heart of India's capabilities, all united by the theme of pushing India's economy beyond the five trillion-dollar mark.

The summit commenced with a welcome speech by Shereen Bhan, Managing Editor of CNBC-TV18. She emphasised the value of technology adoption in streamlining operational costs and enhancing workforce productivity, noting that innovation and collaboration play pivotal roles in ensuring the long-term efficiency and resilience of India's banking sector. Despite challenges, Shereen highlighted India's progress, surpassing the trajectories of many developed nations, and set the tone for discussions ahead.

The discussion started with a captivating dialogue themed "Equipping A New India," featuring Uday Kotak, Former MD & CEO of Kotak Mahindra Bank, where he spoke about seeing India become a $30 trillion economy by 2047 led by the financial sector. While discussing the $5 Trillion mark, he commented, “This is the time for India while managing risks to really scale up in its aspiration for building new capacities and new capabilities in the financial sector.”

He navigated discussions ranging from inflation and India's growth trajectory to the need for diverse banking approaches. Emphasising the significance of having a mix of specialised banks, he also touched on the issue of concentration of power in the consumer tech sector. Additionally, he provided insights into Kotak Bank's strategic shift toward a more technology-focused direction.

CS Setty, MD (International Banking, Global Markets & Technology), State Bank of India, Shyam Srinivasan, MD & CEO of Federal Bank, Prashant Kumar, MD & CEO of Yes Bank, and Ashu Khullar, CEO of Citibank India shared their perspectives on the crucial theme of realising India's ambitious journey towards a $5 trillion economy and beyond.

With a perspective deeply rooted in experience, Kamath shared his belief in the transformative potential of Asset Management Companies (AMCs) as the next drivers of change. Drawing from his wisdom, he highlighted the evolving role of banks in mastering the art of retail lending, a key avenue for growth and empowerment.

He said, “Today, with open source and fintech startups, the landscape has evolved significantly. In order to remain competitive, banks must acknowledge the innovative work done by these startups. To meet the evolving needs of an aspirational India and double the economy, the banking sector needs to adapt. The long-term financing of infrastructure presents a significant challenge. Banks, which typically operate with short-term maturities, must find a way to lend to long-term projects without incurring interest rate risk. Collaboration with emerging savings platforms like pension and insurance funds offers hope for addressing this challenge.”

His insights offered a glimpse into how these innovative spaces are fostering the development of revolutionary financial solutions. With a nod to the fintech realm, Kamath acknowledged their role as catalysts for systematic transformation, propelling the financial landscape forward.

Chetna Sinha, Founder-Chairperson, Mann Deshi Bank, Sucharita Mukherjee, Co-founder and CEO of Kaleidofin, Shinjini Kumar, Co-Founder & Director, SALT-mysaltapp, MN Srinivasu, Co-founder of BillDesk, and Rishi Gupta, MD & CEO, Fino Payments Bank engaged in a dialogue that bridged the gap between traditional banking and innovative fintech solutions. With their collective expertise, they explored the symbiotic potential of collaboration in propelling the aspirations of a new economy.

Vishnu R Dusad, Founder & Managing Director of Nucleus Software, traversed the dynamic landscape of lending, redefining the boundaries that have traditionally confined the lending process.

He further added, “Across a span of three decades, our platform has catalysed the origination, servicing, and collection of 30 crores worth of retail assets, consequently amassing a commanding market share exceeding 50% in India. The root of the challenge isn't solely technological, it's the establishment of an encompassing ecosystem.”

The discussion between Umesh Revankar, Executive Vice Chairman of Shriram Finance Ltd, Rajiv Sabharwal, MD & CEO, Tata Capital, Jairam Sridharan, MD, Piramal Capital and Housing Finance, Ramesh Iyer, Vice Chairman & MD, Mahindra Finance and Alok Aggarwal, CEO, Muthoot Home Finance revolved around the changing landscape of Non-Banking Financial Companies (NBFCs), a sector that's increasingly becoming significant in India's financial story. The discussion explored the balance between stability and innovation that's shaping the future journey of NBFCs.

As the event concluded, it became clear that this was no ordinary summit. It was a junction of thoughts, a merging of wisdom, and a nurturing ground for possibilities. With every conversation, the stage echoed with the weight of insights gained from years of experience, and the enthusiasm of an India ready to step into a future brimming with potential.