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India’s Financial sector: Re-plotting the new normal
Jun 02, 2020

The ongoing COVID-19 pandemic and the lockdown has created a lot of new norms for various industries. For the financial sector the current pandemic has brought out themes like digitisation, cyber security, health insurance for all which are going to be the new normal and shaping the financial services industry going forward. This emerged during the discussions in the session on Indian Financial Sector: Re-plotting the New Normal at the CII Annual Session 2020 today.

Speaking on the financial sector balance sheets,  Mr Sanjay Nayar, Chairman, CII National Committee on Private Equity & Venture Capital and CEO, KKR India, said that the balance sheets of the financial sector remains weak .The consolidation of the public sector banks is a step in the right direction and will automatically consolidate the private sector banks too. He also opined that a classification of good and bad bank would support financing growth going forward. Mr Nayar also stressed on building the local pool of capital and not depending on the foreign capital for growth.

Commenting on the current situation and the NBFC’s Mr Abhimanyu Munjal, Co-Chairman, CII Forum on NBFCs & HFCs and Joint Managing Director & CEO, Hero Fincorp Ltd. said “For NBFC’s I see it as an opportunity to re-imagine completely their operating model” The new normal will keep evolving post COVID, as we would see a huge change in the customer preference and for that new normal we will need to adapt to the customers’ needs.

According to Mr Amit Chandra, Managing Director, Bain Capital Private Equity, three megashifts will be shaping the Financial services sector  broadly: blow to globalisation as a dominant theme, digitization shaping a lot of sectors with the financial sector at the fore front and revival of socialism as a theme, all of which have implications on the financial sector.

Mr Krishnan Ramachandran, Managing Director & CEO, Max Bupa Health Insurance Co. Ltd. opined that while the country has a demographic dividend, the country also needs healthy people to contribute productively. In the new normal the country needs to raise its healthcare spending and stressed on mandating health insurance for all in the country.

Mr Sanjiv Bajaj, Chairman, CII National Committee on Insurance & Pensions and Chairman & Managing Director, Bajaj Finserv Ltd. moderating the session said that banking growth in India is massive and the various steps like building pool of local finance, proper planning, focus of self-reliance in the financial system  would help in building a sound and resilient banking system and help in kickstarting the economy. The panellists at the session also underlined the need for onetime restructuring and unification of regulators in the financial sector.

02-06-2020

New Delhi
 

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