Strategic Challenges for Indian Banking Leadership in Present Times

Indian Banking system has faced multifold challenges and turbulent times since nationalization, in two phases. The government policies and the Reserve Bank of India directives, from time to time, have demanded the challenging strategic thought process and action points for the banks, especially the public sector banks. The implementation of various government-sponsored programmes since IRDP, PMRY, and others, and now Jan Dhan Yojana and various MSME schemes has been very successful due to dedicated leadership of the banks at corporate level and at branch level. 

The recent merger of the banks has further called for strategic planning for various intricacies of merger: cross-cultural aspects besides operational issues at branch level. 

In the present context of Corona pandemic crisis and recent directives of Reserve Bank of India for providing various concessions/moratorium/ implementation of new schemes, further new challenges would also call for new thought process and the leadership of the banks need to tackle strategically to provide support to millions of account holders and general public during and after corona crisis.

Some of the strategic challenges are: 

During the present crisis period:

1. Emotional connect with all stakeholders 
2. Keeping morale of staff high
3. Constant, clear-cut communications at all levels 
4. Community touch initiatives with support to local civic authorities 
5. Supporting all government programs/directives in totality with a humanitarian touch

For futuristic challenges:

1. Developing strong core team to implement the decisions taken at corporate level with acceptance of change management realities as a part of on going business
2. Preparedness for future merger and amalgamation as announced by the government 
3. Developing competent leadership pipelines
4. Regular training and development of manpower to face the future expectations  and encourage creativity of staff
5. Special focus on digital business.
6. Initiatives for successful implementation of “Atmanirbhar Bharat” and “Local to Vocal” schemes by supporting all activities of agriculture and rural development, MSME, export and other segments
7. Due to China effect, create conducive banking environment so global companies are encouraged to shift/set up their ventures in India
8. Encouraging Entrepreneurs and startups to come forward to set up new creative projects/business lines
9. Operational team to be made 100% customer-sensitive with supporting attitude
10. Attention to profitability and image-building globally  
11. Prudent recovery management to control NPAs with strong Risk-management policies 
12. Strict compliance of all regulatory guidelines with transparency 
13. Keeping Board fully informed with total clarity and full information on all strategic and operational issues 

With the total support of government, regulatory authorities and all others, the Indian banking leaders would be comfortable in facing all  future challenges effectively with strategic vision.