Customer patronage and loyalty for Indian Bank seems to have caught the attention of its Managing Director and Chief Executive Officer Padmaja Chunduru. And she feels that this strength has helped the bank tide the storm during the early years of this century, when most feared that the bank would go into history.

She made this remark after meeting up with the bank's customers in Coimbatore. Awed with some of their suggestions for improvement in processes and incorporation of certain features in the digital space, Chunduru, who took over the helm of this Chennai-headquartered bank in September last said “at most such meets, customers would ask for rate reduction. But here, customers seemed to be passionate about banking with us. And this is truly heartening.”

And she maintained that she is intent on protecting the core, while envisioning to take the bank to the top among the medium-sized entities. “The potential to scale is huge, not just in the top line, but profits as well,” Chunduru said.

Excerpts from an interview:

1. Do you foresee the need for this many players in the banking and financial services sector?

Padmaja: Each bank has a niche, a unique selling proposition(USP). Over the years, as businesses started to evolve, banks too started looking for pan India presence.

By and large, banks tend to give a look-alike picture. The systems and processes though have to be streamlined, and there is huge skill gap, which will have to be addressed.

Banks will need to study their strengths and weakness and the geography in which they have an edge over others. Here, I would like to reiterate that the customers of Indian Bank have been loyal, stood with the bank through thick and thin. This I think is the bank's biggest strength. Ultimately, it is not the size, but operational efficiency that can take the bank to greater heights

We need all kinds of banks – small, medium and big. The Government's idea on consolidation is good and the speed at which the mergers are taking place is amazing. The ecosystem is encouraging. In consolidation though, the structure and characteristics of the entities that come together will matter.

2. What is your vision for Indian Bank?

Indian Bank has the potential to scale up not just its top-line but profits as well. Digital is the frontier and we expect to be there in two years.

It is not difficult to turn tech-savvy, but preserving the core is crucial. It is easy for banks to adopt technology than for IT-companies to get into banking.

This bank's culture is appreciable.

Our top-line has crossed the Rs 4 lakh-crore mark. We would like to grow the business by 12 to 15 per cent, with good control on asset quality.

My vision is to take this bank to the top among the medium-sized ones, not just nationalised but private and scheduled commercial entities as well. This will need some focus, reorientation. We have started looking into it.

3. Are you talking in terms of targets?

It is not merely about targets. We cannot overlook or ignore it, but I am looking at it more in terms of productivity, stronger systems and procedures.

We are aiming to bring the net NPA to less than 3 per cent (from around 4 per cent at present). Preventing slippage is crucial.

4. What is your strategy towards preventing slippages?

Well, I am planning to reward and recognise branches that stop the slippage at the nip. Hitherto, we have been rewarding those that have contributed to recovery.

5. Being a woman at the helm, what is the message you would like to convey to the women in banking...

I am trying to bring a special scheme for women. Will be working with the human resource department on this.

I realised that women decline / renounce promotions because of sheer pressure from the family coupled with the fear of being transferred to distant places. I intend to provide an enabling environment. It is in the initial stage.

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