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Informist, Thursday, Sep 5, 2024

--Bank of Baroda Chand: We need to innovate on deposits side
--CONTEXT:Bank of Baroda MD Chand's comments at FIBAC 2024 conference 
--Bank of Baroda MD: Mobilising deposits a challenge last 3-4 qtrs 

--Bank of Baroda MD: Deposit must be bundled product, not generic one 

--IDFC MD:Policy intervention not helped lower income class get loans 

--HSBC India CEO: Globally HSBC gets 100,000 cyberattacks every day 

--SBI Setty: Investment in cybersecurity rising significantly 

--SBI Setty: Greenium on loans can be front-ended 

--SBI Setty:Ultimately foreign capital has to come in to aid financing 

--StanChart Daruwala: Relief on risk weights could ease lending rates 

MUMBAI – With deposit growth in the banking system lagging credit growth by a fair margin, Debadatta Chand, managing director and chief executive officer of Bank of Baroda, said that banks need to bring deposits as a bundled product and not just a generic one. 

"There is a preference changing among savers, it is a transient problem, not a structural one," Chand said during a panel discussion on deposit mobilisation at the FIBAC 2024 banking conference today. "But at the same time, we as banks need to figure out the change that is happening, deposit does not have to be a generic product but a bundled product now." . 

Chand said deposit mobilisation has been a problem over the last three-four quarters and to tackle this problem, banks need to come out with innovative products. "We have seen in the last 3-4 quarters, mobilising deposits has been an issue for the banking system," he said. 

The panel also discussed threats arising out of digitalisation of banking services and the safeguards required in order to insulate banks from these threats. HSBC India Chief Executive Officer Hitendra Dave said at the conference that globally, the bank reports around 100,000 cyberattacks on a daily basis. 

Talking about the need for funds to meet India's financing needs, State Bank of India Chairman C.S. Setty said that banks cannot solely rely on domestic deposits. "Ultimately, foreign capital has to come in to aid financing," he said. 

Setty also said that in order to make green financing more attractive, the greenium on that can be front-ended. State Bank of India's investment towards cybersecurity has also risen significantly, he added.

Speaking at the same panel, IDFC First Bank Chief Executive Officer V. Vaidyanathan said that there is a need to penetrate the bottom of the pyramid and ease their access to credit. "No amount of policy intervention has helped the lower income class get credit," Vaidyanathan said. 

On how the regulator can intervene in lowering the finance costs, Zarin Daruwala, cluster cheif executive officer, India and South Asia, Standard Chartered Bank, said that lowering of risk weights on credit deployed by banks can help in bringing down costs.   End

Reported by Kabir Sharma

Edited by Tanima Banerjee

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