This first of its kind roundtable explored the challenges of consolidation
in the banking industry from the business angle, the employee standpoint,
the customer's point of view, the technological angle as well as
the impact of Basel II on the Banking Industry.
'Managing Consolidation in the Banking Industry' proved that the
business realities together with the finance ministry can make consolidation
inevitable. The forum also revealed that 'Preparing for consolidation'
was the need for businesses earlier but the new environment throws
in fresh challenges for banks to test the veracity of the concept
Eminent panelists who took part in the discussion were, Union Bank
of India CMD Cherian Varghese, Oriental Bank of Commerce CMD BD
Narang, Dena Bank CMD Anil Khandelwal, Yes Bank MD and CEO Rana
Kapoor, ICICI Bank DMD Kalpana Morparia, Deloitte Touche Tomatsu
ED Ashwin Parekh, Asia Pacific Oracle Corporation vice president
financial services Alan G Payne and McKinsey director Leo Puri.
Morparia said, "Today, the top five banks constitute 43 per
cent of the total banking market. Mergers are inevitable because
of concentration in the segments. Mergers happen because they make
business sense not because they are a good thing to do."
Kapoor, on the other hand, said, "Small is beautiful. Small
comes without legacy. We have the freedom to put robust systems
in place. There is an opportunity now for the launch of private
banks who need financial support. There is also opportunity for
aggregation to take place, however, somebody needs to take the initiative.
Also, catalytic forces need not necessarily be foreign. Enough potential
exists within our country. New forces will eventually emerge."
Commenting at the forum CNBC-TV18 vice president sales and marketing
B Sai Kumar said, "Consolidation in the banking business has
finally become a reality. Until recently, it was more of 'Preparing
for consolidation' but has now become quite imminent. CNBC-TV18
aims at bringing to the fore the effect of the inevitable consolidation
of banks, on people from different walks of life. Through this forum,
CNBC-TV18 stands by its effort at empowering Indians to make informed
decisions and improving their quality of life."