"It's not necessarily be a David and Goliath kind of situation"
What’s the main activity going to be for the bank?
It is going to be all banking services. Of course, it has to be an incremental way that one penetrates into the market. They are looking at commercial banking, retail banking, maybe in time it will be institutional banking and a bit of perhaps capital market entry as well. That could be a bit ambitious at this stage but definitely I know that there is capture of the local segment and the residential mortgage market.
That’s to be starting straight away?
It is a question of working out the strategic focus and the directors are yet to be sitting with the business plan to work out what will be the milestones and where will be the deliverables, but there is a focus because it is a full-fledged bank in India. In fact, as we speak, there are board papers coming up which actually gives us an idea where the focus is going to be. I suppose the main focus will be first the residential banking as well as commercial banking. That will be a definite focus. If they have to get into nonbanking activities, that will be another stream, but I don’t know at this stage whether that will be, like nonbanking financial activities.
How does it feel like standing up to the big Australian banks.
Well, I don’t look at it as just being competitive. I am looking at it as niche marketing and there is a time and place in this today’s world about having a player that need not necessarily be a David and Goliath kind of situation. It is about niche marketing and it is about the penetration into a Diaspora group as well as, as I said earlier, it is not just about hooking onto the Indian subcontinent people here or the people of Indian origin. It is also looking at all ethnic communities as well as looking at mainstream. If the product is good, if the whole activity is proving to be value for money, we may be able to capture the hearts and minds and the brains of the mainstream New Zealanders as well and that is my feeling that we should have another player. We are the 19th bank to operate in New Zealand. So it’s quite important that we don’t start the game with how can we cut and slice and dice the cake. It’s about increasing the size of the cake.
Do you think there will be an instant appeal to Indians living here because of the brand equity of Bank of Baroda in India?
Yes, there could be that initial euphoria because it is associating one with the brand and with that emotional appeal but the bank also has got to play its role in trying to say to people that we also provide value for money and we are going to give you something that’s going to be a legacy that they can leave behind. So sometimes the euphoria and the emotional thought of it works as a package but the credibility will hold good if the delivery is matched with the vision.
What’s your role going to be?
I am only a local board advisor, so I don’t fly to India for board meetings. That’s the main corporate group. I think they have tapped into my 18 years of experience in the Reserve Bank and my role will be primarily to provide that kind of financial and prudent oversight of the banking operation and I believe that they will be forming committees like audit committee and I think because of my background, I will be heading the audit and finance committee but there will also be a customer committee, there will also be a strategic focus committee, a new business committee. So perhaps we will look more into community getting involved in this as co-opted members and by the way, it is a pro bono role for me because I already am working for a public institution. So in this pro bono role, I can give as much as I can add to the intellect and expertise. It is not a full-time director’s role, neither am I looking at it as another way to earn money. It’s mainly to work on the goodwill.
What’s the main activity going to be for the bank?
It is going to be all banking services. Of course, it has to be an incremental way that one penetrates into the market. They are looking at commercial banking, retail banking, maybe in time it will be institutional banking and a bit of perhaps...
What’s the main activity going to be for the bank?
It is going to be all banking services. Of course, it has to be an incremental way that one penetrates into the market. They are looking at commercial banking, retail banking, maybe in time it will be institutional banking and a bit of perhaps capital market entry as well. That could be a bit ambitious at this stage but definitely I know that there is capture of the local segment and the residential mortgage market.
That’s to be starting straight away?
It is a question of working out the strategic focus and the directors are yet to be sitting with the business plan to work out what will be the milestones and where will be the deliverables, but there is a focus because it is a full-fledged bank in India. In fact, as we speak, there are board papers coming up which actually gives us an idea where the focus is going to be. I suppose the main focus will be first the residential banking as well as commercial banking. That will be a definite focus. If they have to get into nonbanking activities, that will be another stream, but I don’t know at this stage whether that will be, like nonbanking financial activities.
How does it feel like standing up to the big Australian banks.
Well, I don’t look at it as just being competitive. I am looking at it as niche marketing and there is a time and place in this today’s world about having a player that need not necessarily be a David and Goliath kind of situation. It is about niche marketing and it is about the penetration into a Diaspora group as well as, as I said earlier, it is not just about hooking onto the Indian subcontinent people here or the people of Indian origin. It is also looking at all ethnic communities as well as looking at mainstream. If the product is good, if the whole activity is proving to be value for money, we may be able to capture the hearts and minds and the brains of the mainstream New Zealanders as well and that is my feeling that we should have another player. We are the 19th bank to operate in New Zealand. So it’s quite important that we don’t start the game with how can we cut and slice and dice the cake. It’s about increasing the size of the cake.
Do you think there will be an instant appeal to Indians living here because of the brand equity of Bank of Baroda in India?
Yes, there could be that initial euphoria because it is associating one with the brand and with that emotional appeal but the bank also has got to play its role in trying to say to people that we also provide value for money and we are going to give you something that’s going to be a legacy that they can leave behind. So sometimes the euphoria and the emotional thought of it works as a package but the credibility will hold good if the delivery is matched with the vision.
What’s your role going to be?
I am only a local board advisor, so I don’t fly to India for board meetings. That’s the main corporate group. I think they have tapped into my 18 years of experience in the Reserve Bank and my role will be primarily to provide that kind of financial and prudent oversight of the banking operation and I believe that they will be forming committees like audit committee and I think because of my background, I will be heading the audit and finance committee but there will also be a customer committee, there will also be a strategic focus committee, a new business committee. So perhaps we will look more into community getting involved in this as co-opted members and by the way, it is a pro bono role for me because I already am working for a public institution. So in this pro bono role, I can give as much as I can add to the intellect and expertise. It is not a full-time director’s role, neither am I looking at it as another way to earn money. It’s mainly to work on the goodwill.
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