Industry leaders and policy makers debate moves needed to position India as the "Breakout Nation" at ISB's Capital
Markets Conclave ARTHA
Mumbai, October 20, 2015:
The Indian School of Business (ISB), with campuses at Hyderabad and Mohali, hosted PJ Nayak, Former Chairman, CEO, Axis Bank and Sanjay Nayar, CEO, KKR as keynote speakers at Artha
2015 – ISB's Annual Capital Markets Conclave being held in Mumbai. The conclave brought together some of the best minds at the forefront of industry, policy and academia. Artha 2015 is co-organised by students of the Finance Club at ISB and alumni.
The theme of the Conclave for this year was, "India in a Sweet Spot? - Initiatives required to emerge as a 'Breakout Nation.' Accomplished leaders debated various approaches to position India as a favoured investment
destination, and the kind of investments needed to catalyse India's growth and find out how India can become the next growth engine in Asia.
Delivering the keynote address, P.J. Nayak, Chairman of the RBI Committee on Public
Sector Reforms and Former Chairman & CEO, Axis Bank, stressed there is much that still needs to be rectified with the public sector banks vis-à-vis the private sector. Notwithstanding the comparison on size, the private sector
banks have been more innovative leading to their success. The key drivers for this success is their innovation on adaption of technology for operational efficiency, automated transactions channels, better sales and distribution
channels and relationship management. For instance public sector banks own two third of the assets of the Indian banking sector, but generate only one third of returns, observed the head of the PSU banks reforms.
sector banks are facing a double whammy in the form of lower credit spread and lesser fee income than their private sector counterparts. Further it is a fatal flaw to impose the burden of social mandate on select banks. The social
responsibility should be shared equally by all banks, private and public, alike, he added.
The first panel on 'Role of banks and FIIs in financing long term growth' comprising of Vikram Limaye, MD & CEO, IDFC,
Harshvardhan, Global Partner & Head of financial services, Bain & Company, and Giri Jadeja, Head – Asia Financial Institutions group, IFC deliberated on whether India can become the next growth engine in Asia through banks
acting as catalysts of growth in the next decade.
The panel, moderated by Krishnamurthy Subramanian, Associate Professor of Finance, ISB debated on the role of banks in driving domestic credit growth and how digital
platforms can be leveraged to build banks of tomorrow. These transformations can enhance economic growth and impact financial inclusion.
Vikram Limaye, MD & CEO, IDFC, said, "There is a concern on how banks are
governed in India and from a regulatory perspective, whether the banks have the authority to do what they are supposed to do. The system is still not geared up for a seamless credit structure." Further, there is a need for the
banking community to do banking in a different way. Technology is the key and more and more banking will be done on mobile handsets adding, "The whole ecosystem needs to be complete in terms of having the right tools, regulations
and the governance structure."
Speaking on the occasion, Sanjay, Nayar, CEO, KKR, "Industrial export numbers have declined and I expect this trend to show in the service sector as well, which is already being
reflected in the IT sector results. He further added, "We need more absorption capacity in our capital markets to avoid asset price inflation. In the new GDP series, 7% GDP growth feels like a sub 6% GDP growth. It would be
cynical to say that India cannot achieve 8%-9% growth in the new series, the only question is when?"
The second panel on 'Attracting Private and Public Capital Flows vis-à-vis other Emerging Markets' was presided by
Manisha Girotra, Chief Executive Officer Moelis; Gaurav Ahuja, Director, Chrys Capital; Shankar Narayanan, MD, Carlyle; Vish Narain, Partner, TPG Growth; moderated by Viraj Mahadevia. The panelists spoke about private and public
market flows throwing insights on India and other emerging vis-à-vis developed markets.
The recovery in US demand along with a possible solution to the Greek crisis can provide the much required boost to Indian exports to
Europe and elsewhere. The panel widely agreed that amid sluggish growth in China, and indeed globally, the Indian capital markets can emerge as a favourite destination for capital flows. In the near horizon, this substitution
effect will give a significant fillip to Indian economy.
Artha is the annual flagship event of the ISB Finance Club and has hosted some highly accomplished leaders in the past. The conclave
brings together some of the best minds at the forefront of industry, policy and academia through interactive discussions, with the aim of developing perspectives and inspiring the student body.
The Indian School of Business (ISB) is a global Business school offering world-class management education across its two campuses – Hyderabad and Mohali. The School has grown at a rapid pace over the twelve years since its
inception and already has several notable accomplishments to its credit – it is the youngest school ever to consistently rank among the top Global MBA programmes, the first institution in South Asia to receive the prestigious AACSB
accreditation, one of the largest providers of Executive Education in Asia, and the most research productive Indian management institution. A vibrant pool of research-oriented resident faculty, strong academic associations with
leading global B-schools and the backing of an influential Board, have helped the ISB fast emerge as a premier global Business school in the emerging markets. For more details visit www.isb.edu
For further information, please contact:
C. Chitti Pantulu | Meghana Bangalore
Indian School of Business | Adfactors PR, Mumbai
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