“…All these banks have huge transformation agendas and you cannot do a change agenda in two or three years. It is impossible to do that.
“You are creating a big hurdle in the public sector by changing your core team every three years,” Bhattacharya said at an event organized by the state-owned company.
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Bhattacharya clarified that he is there to review and ensure that those who need to change should be changed, but added that an opportunity should be given keeping in mind the objective of continuity.
Defending the performance of PSBs, he said that while assessing the performance of the lenders, various parameters like financial inclusion and public engagement have to be looked at and not the investor preferences like cost-to-income ratio.
He said that no other system in the world could overcome the challenges like Pradhan Mantri Jan Dhan Yojana demonetisationThe way public sector banks did it successfully.
It may be noted that reserve Bank of India Allows private sector bankers to remain at the helm till the age of 70, and recently reviewed guidelines to limit the maximum tenure to 15 years.
Meanwhile, speaking at the same conference, Bhattacharya said that banks need to invest in technological integration by unpacking and integrating the silos in which they operate.
“It will give you insight, which will give you a lot of ideas on what can be done,” he said, adding that RBI also needs to help with customer awareness.
Group chief executive Rashesh Shah said non-bank lenders should not compete with banks that have better access to affordable deposits.
He said NBFCs should focus on being closer to the customer and innovating more.