National Institute of Bank Management, Pune

(An Autonomous Apex Institute Established by RBI & Banks)

( Registered as a Society under the Indian Societies Registration Act 1860
Recognized as a scientific and Industrial Research Organization by Department of Scientific
and Industrial Research, Ministry of Science and Technology, Government of India )

Research Projects: April 2016 – March 2017

 Research Projects Completed


I.    Human Resource Management

1.    Competency Profiling For Branch Heads In PSU Banks

        – Dr Shomi Srivastava  & Shri S K Das

Banking industry, more particularly PSU banks, is passing through a very challenging phase due to paradigm shift in consumer behavior, digital revolution, demographic changes, ever increasing regulatory compliances, competition from private sector banks and NBFCs, and huge induction of young staff, etc. In the present dispensation, most critical link between customer and bank is branch.  Success of branch operations depends on various competencies (abilities, knowledge, skills, personal characteristics, etc.) of a Branch Head. Keeping above facts in view, we thought it fit to start a research project for identification of various competencies at Branch Head level.  Hence this survey was conducted. We have identified competencies in functional and behavioural areas after discussions with successful BHs / RHs / ZHs of PSU banks and also from feedback received through a survey, which was responded to by middle/senior level leaders of PSU banks and managers of a leading Private Sector Bank.  The project has identified the competencies of Branch Head to manage the branch effectively. Accordingly, the report is submitted. Dr Shomi Srivastava and Shri S K Das were coordinators of this project.


II.    Information Technology

1.    Study Report on Improving Efficiency of Retail Payment Systems in India
        – Dr Achyut Hirve (Coordinator), Dr Deepankar Roy, Dr Alka Vaidya & Prof Sunil Bakshi

This NIBM study on improving effectiveness of payment systems in India was taken up in June 2016 to study the constraining factors which affect the adoption of digital payments in India and suggest measures to address the structural issues for planned reduction in the currency to GDP ratio. Such a transformation would help meet the expectations of external and internal stakeholders for value creation through benefits realisation and risk and resources optimisation. The reduction of role of currency and promotion of digital payments in economy would require complimentary measures for creating a secure ecosystem for digital payments by adopting cost based pricing, creating infrastructure for cashless payments, encouraging digital payments for credit monitoring and utility services, and promoting indigenous research in payment technology.


III.    Strategic Planning, Marketing and Control

1.    Development of Cases in Marketing of Banking Services
       – Dr Sarita Bhatnagar

Two case studies have been developed. Case study titled "State Bank of India - Quest for Marketing Excellence through Social Media", which was presented in 4th ICBM International Case Conference 2016, "Managing Business in VUCA world" on December 17, 2016,  organized by ICBM - School of Business Excellence, Hyderabad. Case Study titled "HDFC Bank: CRM and Analytics Strengthening Marketing", has been brought out as working paper.

 

Consultancy Projects: April 2016 – March 2017

Consultancy Projects Completed


A.    Bank of Maharashtra


1.    Preparation of Treasury Manual for Bank of Maharashtra

       – Dr S V Kuvalekar (Coordinator), Dr V K Khanna, Dr Kedar nath Mukherjee & Dr Gargi Sanati

The concerned consultancy project has been initiated after receiving a request from Bank of Maharashtra for preparation of a "Treasury Manual" for them, covering Domestic and Forex Treasury operations, with all possible operational aspect related to the Front, Bank and Mid Office of the bank's Treasury.

The Manual intends to cover bank's Treasury operations in all possible segments of the Financial Market, namely: Money Market, Government Securities Market, Corporate Bond Market, Equity Market, Foreign Exchange Market, and Derivatives Market; emphasizing separately on all possible operational issues related to Treasury Front, Back and Mid office activities with respect to the specified market/products, within the ambit of RBI and bank's own internal policies and guidelines. The project work was initiated by acquiring the relevant internal documents from the bank, followed by round of discussions and interactions with the concerned executives and officials, both at the Corporate Office, Pune, and at the Treasury Branch, Mumbai. After receiving comments and suggestions from the bank on the first draft of the manual, the team members initiated further discussions and interaction with the concerned officials of the bank, to make the necessary changes on various chapters of the manual. Subsequently, the revised draft, after incorporating all the comments and suggestions made by the bank, was submitted to the bank before March 31 2017. The final report was submitted to the bank and the same was duly approved and accepted by the bank.


B.    Indian Bank

2.    Competency Mapping for Executives in Scale V and above of Indian Bank
        – Dr Achintan Bhattacharya (Chief Coordinator    ), Dr Shomi Srivastava (Coordinator), Dr Arindam Bandyopadhyay & Prof Anjan Roy

The project was undertaken to develop a Succession Planning and Leadership Development Plan for the Bank by identifying the better performers from among its existing pool of human resources in various executive cadres.  The exercise identified the top performers in the cadres who have the potential to become the future leaders of the Banks and to give a  focused attention on their grooming, placement, engagement and growth.  The objective of the talent management exercise was to identify top talent within the Bank who are relatively more rounded bankers and who are most likely to create a competitive advantage for the Bank and are, therefore, positioned appropriately.  The second objective was to create a developmental agenda by suitable placements and training for the top talent, in order to groom them for future leadership position in the short to medium term.  Lastly, to identify successors from the talent pool for critical positions and to perform leadership roles by suggesting positions in various branch, controlling offices and functional departments.
In this project 10 DGMs and 45 AGMs of the bank had participated. Report was submitted in April 2016. 


C.    Dena Bank

3.    Competency Mapping and Succession Planning for DGMs and AGMs for Dena Bank
        – Dr Achintan Bhattacharya (Chief Coordinator    ), Dr Shomi Srivastava (Coordinator), Dr B S Pawar, Dr Arindam Bandyopadhyay & Prof Anjan Roy

The project was undertaken to develop a Succession Planning and Leadership Development Plan for the Bank by identifying the better performers from among its existing pool of human resources in various executive cadres.  The exercise identified the top performers in the cadres who have the potential to become the future leaders of the Banks and to give a  focused attention on their grooming, placement, engagement and growth.  The objective of the talent management exercise was to identify top talent within the Bank who are relatively more rounded bankers and who are most likely to create a competitive advantage for the Bank and are, therefore, positioned appropriately.  The second objective was to create a developmental agenda by suitable placements and training for the top talent, in order to groom them for future leadership position in the short to medium term.  Lastly, to identify successors from the talent pool for critical positions and to perform leadership roles by suggesting positions in various branch, controlling offices and functional departments.

In this project 31 DGMs & 91 AGMs of the bank had participated. Report was submitted in March 2017. 

 
D.    Syndicate Bank

4.    Competency Mapping and Succession Planning for DGMs and AGMs Syndicate Bank
        – Dr Achintan Bhattacharya (Chief Coordinator), Dr Shomi Srivastava (Coordinator), Dr B S Pawar, Dr Arindam Bandyopadhyay & Prof Anjan Roy

The project was undertaken to develop a Succession Planning and Leadership Development Plan for the Bank by identifying the better performers from among its existing pool of human resources in various executive cadres.  The exercise identified the top performers in the cadres who have the potential to become the future leaders of the Banks and to give a  focused attention on their grooming, placement, engagement and growth.  The objective of the talent management exercise was to identify top talent within the Bank who are relatively more rounded bankers and who are most likely to create a competitive advantage for the Bank and are, therefore, positioned appropriately.  The second objective was to create a developmental agenda by suitable placements and training for the top talent, in order to groom them for future leadership position in the short to medium term.  Lastly, to identify successors from the talent pool for critical positions and to perform leadership roles by suggesting positions in various branch, controlling offices and functional departments.

In this project 130 AGMs and 28 DGMs of the bank had participated.  Report was submitted in March 2017. 


E.    Comptroller and auditor general of India (C&AG)

5.    Audit of Recapitalization of Public Sector Banks in India
       – Dr Arindam Bandyopadhyay, Dr Tasneem Chherawala, Dr Achintan Bhattacharya, Shri B A Prabhakar, Shri D Narang & Shri Biswamohan Mahapatra

NIBM has provided consultancy support to C&AG to prepare the above report. The project had started in January 5, 2017 and completed within six month. The report was submitted to parliament in the end of July, 2017 and was made public in CAG website in July 28, 2017.

Report URL: http://www.cag.gov.in/content/report-no28-2017-performance-audit-union-government-recapitalisation-public-sector-banks

The  Report  analyzed the recapitalization of PSBs and compared bank performance over  the  period  2008-09  to  2016-17, wherein GoI, as the majority shareholder, had infused capital of  Rs. 1,18,724 crore  in the PSBs. The purpose of audit exercise were two folds: a) to assess whether objective parameters were adopted for recapitalization of PSBs and to check consistency of their application across all PSBs & b) to examine whether the release of capital funds was monitored and check whether conditions attached to recapitalization were complied with and objectives of recapitalization were achieved.

The audit exercise finds that the rationale for distribution of GoI capital among different PSBs was not found on record in some cases and was not linked to their performance. There is a significant gap between book value and market value of PSB shares, with most PSBs having a lower market value which may come in the way of PSBs approaching the market for additional capital funds. 

The study has analyzed the effect of recapitalization on 21 PSBs performance by segmenting them into two categories in terms of total capital infused amount to current total net-worth (category I: high capital & category II: low capital). The study finds that the average ROA, ROE and rate of growth of advances has, in general, been lower in case of category II PSBs compared to category I PSBs. It was also noticed that the average capital adequacy ratio of category II PSBs was consistently lower than that of category I PSBs.

The study suggests that there should be an effective monitoring system in place and this system should ensure fulfillment of the intended objectives of fund infusion in PSBs. Moreover, the criteria for capital infusion, once finalized, may be consistently applied across all PSBs.  In this context, bank-specific ICAAP documents may be considered by Department of Financial Services (DFS) while assessing the quantum of fund infusion yearly.

Achievements in Consultancy during Financial Year 2017-18 

 

Providing consultancy support to Banks and Financial Institutions has all along been one of the key strengths of the Institute. The institute has successfully completed many important consultancy assignments in the risk management/HR/Strategy domain. The institute generally plays a facilitating role in providing independent consultancy support to the banks/FIs. Following consultancy projects have been successfully completed during 2017-18.  

 

Project 1: CAG Audit of Recapitalization of Public Sector Banks in India 

NIBM has provided consultancy support to C&AG to prepare the above report. The project had started in January 5, 2017 and completed within six month. The report was submitted to parliament in the end of July, 2017 and was made public in CAG website in July 28, 2017.  

The  Report  analyzed the recapitalization of PSBs and compared bank performance over  the  period  2008-09  to  2016-17, wherein GOI, as the majority shareholder, had infused capital of  Rs. 1,18,724 crore  in the PSBs. The purpose of audit exercise were two folds: a) to assess whether objective parameters were adopted for recapitalization of PSBs and to check consistency of their application across all PSBs & b) to examine whether the release of capital funds was monitored and check whether conditions attached to recapitalization were complied with and objectives of recapitalization were achieved.  

The study suggests that there should be an effective monitoring system in place and this system should ensure fulfillment of the intended objectives of fund infusion in PSBs. Moreover, the criteria for capital infusion, once finalized, may be consistently applied across all PSBs.   

Team 

Dr. Arindam Bandyopadhyay (Coordinator, NIBM), Dr. Tasneem Chherawala (Faculty, NIBM), Dr. Achintan Bhattacharya (Former Director, NIBM) , Shri B A Prabhakar (Former CMD, Andhra Bank), Shri D Narang  (Former ED, United Bank of India) and Shri Biswamohan Mahapatra (Former ED, RBI)

 

Project 2: Competency Mapping and Succession Planning for DGMs and AGMs of UCO Bank 

NIBM has conducted the Competency Mapping and Succession Planning exercise for DGMs and AGMs of UCO Bank during April 10 – 13, 2017 at NIBM, Pune. In this assignment, 21 DGMs and 47 AGMs participated in the exercise. Report submitted to the Bank on April 27, 2017. 

Team-

Dr. Achintan Bhattacharya (Director, NIBM, Principal Coordinator), Shri V S KrishnaKumar (Former ED, Canara Bank), Shri Deepak Narang (Former ED, United Bank of India), Shri Asit Pal (Former ED, Corporation Bank), Shri Bhaskar Sen (Former CMD, United Bank of India), Shri B V Chaubal (Former DMD, SBI), Shri S K Das (Former CGM, Bank of Baroda), Dr. Arindam Bandyopadhyay (Faculty, NIBM), and Dr. Shomi Srivastava (Coordinator, NIBM) were members of the project.

 

Project 3: Competency Mapping and Succession Planning for Chief Managers of UCO Bank 

NIBM had taken up the consultancy exercise of Competency Mapping and Succession Planning for Chief Managers of UCO Bank during May 18 – 21, 2017 at NIBM Pune. In this project, 217 Chief Managers of the Bank participated in the exercise. Report submitted to the Bank on June 21, 2017. 

Team-

Dr. K L Dhingra (Director, NIBM, Principal Coordinator), Shri A C Mahajan (former CMD, Canara Bank and Allahabad Bank), Shri V S KrishnaKumar (Former ED, Canara Bank), Shri Deepak Narang (Former ED, United Bank of India), Shri B V Chaubal (Former DMD, SBI, Member), Shri T K Srivastava (Former ED, Syndicate Bank), Shri S K Das (Former CGMs BOB), Shri C S Pasricha (Former Executive, PNB, Member), Shri A K Thakur (Former GM, Union Bank of India), Shri Manoj Biswal (GM, Bank of Maharashtra), and Dr. Shomi Srivastava (Coordinator, NIBM) were the members of the project.  

 

Project 4: Competency Mapping and Succession Planning for AGMs and CMs of Syndicate Bank 

NIBM had initiated the assignment of Competency Mapping and Succession Planning for AGMs and CMs of Syndicate Bank during February 05 – 19, 2017. The objective was to identify the better performers from among its existing pool of human resources. In this assignment, 38 AGMs and 159 CMs participated in the Competency Mapping and Succession Planning exercise. Report submitted to the Bank on February 28, 2018.   

Team-

Dr. K L Dhingra (Director, NIBM, and Principal Coordinator), Shri Deepak Narang (Former ED, United Bank of India), Shri B V Chaubal (Former DMD, SBI), Shri B Ashok (GM, Central Bank of India), Shri H N Saxena (Former GM, Union Bank of India) and Dr. Shomi Srivastava (Coordinator, NIBM), were the members of the project.  

 

Project 5-NIBM has recently submitted project report on-Validation of Framework, Systems and Models used in Risk Management Department of Allahabad Bank”.  

Model validation has been a key task for risk focused management for internal management of risk across various business lines. Reliable rating systems require efficient validation strategies. The project was awarded to NIBM by Allahabad Bank on November 2017 for validation of Framework, Systems and Models used in Risk Management Department of the bank. The validation exercise covers both qualitative and quantitative analysis and is intended to provide suggested changes in complying with requirement of RBI or Regulator. It covers, Credit Risk, Market Risk, ALM & Liquidity Risk, ICAAP & Capital Computations.

 The Report is submitted in April 10, 2018.  

Team 

Dr. Arindam Bandyopadhyay (Coordinator, NIBM), Dr. Tasneem Chherawala (Faculty, NIBM), Shri Biswamohan Mahapatra (Former ED, RBI), Shri Rajesh Mahajan (Former GM, BOB) and Dr. K L Dhingra (Director, NIBM)

 

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