The Hindu Business Line : Sidelights of Bancon-2006

Definitions of economics abound. Economics is what economists do, runs one definition. Some have referred to it as a dismal science. But while introducing Dr C. Rangarajan, career economist and former RBI Governor, to the audience, Mr K.N. Prithviraj, CMD, Oriental Bank of Commerce, said, "It is said that economics is nothing but common sense made difficult by American Professors.''

Deja Vu

Although bankers seemed to talk sincerely about financial inclusion at the ongoing conference, many of them seemed to suggest that there was nothing really new. Banks had been doing this for a long time. It was just that it was being given a new name. At various sessions, there were repeated references to the record of banks in branch opening, rural coverage, agri-lending, SHG linkages, social role of banks etc. One felt that this had been said at a number of bank conferences before. But there is not much to hope for in future going by what some of them said.

The Indian Bank CMD, Dr K.C. Chakraborty, referring to the general tendency to talk a lot but seldom act, quipped, "We are still going to discuss the same issue 10 years down the line.'' That sounded scary.

"Don't Bluff "

While referring to the need to be transparent with numbers, Dr Chakraborty cautioned fellow CMDs in rather blunt language - "Let's not bluff. Let's not cheat ourselves by not giving correct figures." He also seemed to come down heavily on banks announcing their achievements in opening more "no frills" accounts. He said the financial inclusion drive was not over merely by the opening of these accounts.

Counter Service

Banks these days talk about customer satisfaction and customer delight. But Professor V. Venkata Ramana, Dean, School of Business Management, Hyderabad Central University, referred to an occasion not too long ago when Dr Rangarajan referred to service at bank counters as "Counter service''.

Affairs are now "in''

When Oriental Bank of Commerce's CMD, Mr K.N. Prithviraj, was asked if the alliance announced recently among OBC, Indian Bank and Corporation Bank was a prelude to an eventual merger, he was quick to scotch any such speculation. When told that despite the denials, the market believed that the merger would happen, he said, "We are living together. That doesn't mean we are going to marry!''

Bus timings indicate branch timings !

Dr C. Rangarajan, Chairman of Economic Advisory Council to the PM and former Governor of RBI, in his address, referred to the problems in rural banking. While asking bankers to be close to their rural customers, he said that in many areas there were no fixed hours of business for rural branches. It was dependent on the arrival of the bus from the nearest town, since bankers preferred to stay in the nearest urban area. Their closing hour was also determined by the departure timings of the last bus.