Pose a question to a bureaucrat, who is also an economist, on profitable business model for financial inclusion, and what would you get in reply? It is likely that you will get a typical ‘government answer' from the bureaucrat, and not an economist. Or so it proved.

Replying to a question on the profitable business model for financial inclusion at a panel discussion on ‘Profitable models for financial inclusion, agriculture and rural development' , Mr Achintan Bhattacharya, Joint Secretary, Department of Financial Service, Union Ministry of Finance, said that the Government can only lay the infrastructure. Models will evolve from bankers' own assessment of the situation. Reacting to this in a lighter vein, Ms Nupur Mitra, CMD of Dena Bank, who chaired the session, said: “This is the typical government reply. Not of an economist's.”

Mobile banking for financial inclusion

In the last 90 days, Canara Bank has opened 125 financial inclusion branches in 11 States and has already grossed Rs 100 crore business

(deposits plus advances), said Ms Archana S. Bhargava, Executive Director, Canara Bank, said during the panel discussion on ‘Profitable models for financial inclusion, agriculture and rural development'. During this panel discussion, Mr Renny Thomas, partner, Mc Kinsey &

Company, said that mobile banking would cost as low as one per cent of the traditional banking cost and far lower than the banking correspondent costs incurred for financial inclusion.

ALM of a another kind

Post-lunch sessions are the most challenging for speakers doing brain-storming sessions. Ms Usha Ananthasubramanian, Executive Director, Punjab National Bank, could not agree more. “Banks are all familiar with a branch of management called ALM or asset-liability management,” she said while intervening in such a session here at the Bancon 2011 here on Saturday. “But here, we have to accomplish another kind of ALM ....after-lunch management,” she said to the amusement of the assembled gathering.

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