The Hindu Business Line : Can BANCON become the beacon for bankers?

In early 70s,when the lead bank scheme and the concept of district credit plans were introduced, most banks set up economic research departments to conduct surveys, prepare plans.

The exercise necessitated collaborative efforts and close interactions.

The first BECON held in 1975, deliberated the role of ERDs and the operationalisation of the credit plans.

It was a business-like meeting of the middle-level executives, hardly finding mention in the media.

Change in focus

The next two BECONs too focused on implementation of credit plans and government schemes such as the 20-point economic programme.

The interest seemed to quickly wane in the absence of backing of the seniors and there was a lull for four years.

In the wake of massive branch expansion, recruitment and growth in retail credit, for the first time in 1980, banks reviewed their profitability and productivity.

The need for strengthening the BECON was recognised but the participation continued to be lukewarm. A few senior executives could be spotted, if venues were a Bangalore or Goa.

Rural development

Rural development continued to be the pet theme, though areas such as profitability, structure of banks and international banking too found place.

During the latter part of 80s banks used BECON as a platform to air their concerns and grievances.

The 90s ushered in lateral movement of senior executives and creation of a common pool in public sector banks, prompting the senior executives to project and market themselves in the glare of lights and cameras in these forums, helping them become important events.

The second half of 90s, coinciding with the second wave of reforms, brought about a qualitative change in the papers and discussions, many CEOs becoming a regular part of the process.

Post-reforms, the size and structure of banks, quality and strength of balance sheets, global competitiveness and issues like financial viability came to the fore.

Future perspectives such as restructuring of the financial sector, re-engineering the processes, industry best practices, and retail banking became the favourites.

New outlets

Some foreign banks opened new outlets while a few entered for the first time. Introduction of new technology and products, delivery channels such as ATMs and Internet banking intensified the competition.

Recognising the implications for the industry, the need for credibility and to provide organisational support, IBA assumed the role of a co-sponsor for BECONs.

Dignitaries from the RBI, Government, CVC and SEBI etc., began taking part in the proceedings.

After a delay on the eve of the new millennium, two BECONs were held in 2001 with the themes of ‘financial stability’ and ‘paradigm shift in banking’.

Many choices

Looking at the diverse interests of the delegates and the number of papers, the technical sessions or the segmental presentations began to be held in different venues, providing choice to the participants.

But the packed agenda leaves no room for any meaningful discussions.

Some end their participation with collection of the prized back papers, to attend to other engagements

As entry is thrown open, the BECONs helped bring together different market players, including service providers, regulators and the government.

It is an opportunity for socialising and business too.

Presently, the bankers seem to be outnumbered by others.

Many seniors, who make a beeline to the conference, mark their presence and do a vanishing trick, as soon as the top brass of the RBI and Government leave the venue.

BECON was aptly rechristened as BANCON (Bankers’ conference) during BECON 2003.

The first BANCON was held in 2004 with the theme ‘global aspirations’, reflecting the eagerness of banks to take on competition and get ready to comply with the Basel prescriptions.

Shift in priorities

However, a shift in the priorities of the new government was reflected in the theme, ‘opportunities in financing agriculture’, chosen next year.

As a follow-up, BANCON 2006 deliberated extensively on the subject of ‘financial inclusion’.

This settled the issue of Government’s hold on banks and the predominant role of PSBs at BANCON.

BANCON 2006 was held at the Hi-tech city in Hyderabad, providing a contrast to the theme.

Several foreign delegates from international banks and the World Bank participated in the glittering show.

The presence of a large number of VIPs and dignitaries attracted the print and electronic media in full strength.

The Indian banks had joined the global league!

More participants

The number of participants grew from a modest 30 in 1975 to more than two thousand now.

Continuous movement of senior executives from venue to venue, who combine the visit with other engagements, proves a great distraction for the serious minded.

The media interactions on the sidelines, the social vibes and business contacts may add to the hype and entertainment but not enlightenment.

Whether it is to be a forum for focusing on the issues confronting the banks or a business –cum-social event might become clearer in the coming years.

Apparently, there is no follow-up on the discussions.

So much effort, time and money go in to making the event. Once it is over no further dialogue takes place.

BANCON having emerged as a key annual event much more can be achieved.

It may be worthwhile to recapitulate the proceedings of the previous BANCON and review any related developments during the plenary session.

The author is a former Managing Director of State Bank of Mysore