New Delhi: The disruptions caused by the COVID-19 crisis also present an opportunity for businesses to reinvent strategies and reinvent themselves, Union Bank of India Managing Director and CEO Rajkiran Rai G. said at a seminar organized by the PhD Chamber of Commerce and Industry on Friday. The banking industry is always there to support businesses, but they will also have to innovate and look beyond the deal.
He said, "The current disruption is an opportunity to re-strategise and reinvent. Look at the new geographic regions you can introduce, you can launch new products, and see strategic tie-ups when possible."
The Union Bank chief also said that SMEs have real opportunities to join the global supply chain as more companies seek to diversify input sources.
Noting that small businesses are primarily individual offerings, he said such companies should adopt digital means for banks to assess their creditworthiness more quickly and effectively.
"There is much simple software available, do that because for bank statements it is very important. Now, when you have original data, you can give it to me, and then my processing becomes much simpler instead of CA creating a balance sheet.
"I would like to have an account balance supported balance sheet, where each credit and debit income, I can authenticate your budget well and I can make a call to the limit (for the loan)," Rai said.
He added that digital will be a big wave for both banks and businesses following the coronavirus pandemic.
"Just like sitting at home, the loan is being processed. Banks have to evolve at this level in response ... to COVID. When I say that small and medium-sized enterprises must develop, they must develop ..." An opportunity for companies, especially small and medium-sized companies, to adapt to small trends. "
Rai emphasized that there is much to be done on the digitisation journey.
"We need to innovate and bring ... new ideas ... today the banks are ready to help. With the added burden of future consequences, we are in a position to help you. Together we can swim in uncharted waters.”
"It is also an opportunity for conventional banks to make the necessary makeovers and become agile institutions," Rai said, addressing industry participants.
He also said that there is a lot of talk about the economic contraction in this fiscal because many agencies come in different numbers. However, he expressed the hope that India will prove them wrong.
"When I speak to a lot of my people, ... we're almost back to normal. I was looking at my retail sanctions, my June sanctions are as good as the June 2019 sanctions."
"In general, we look at the metros and form opinions. Please look beyond the metros, there is India which is surviving and thriving. Why should we be negative? Let's prove all these statisticians wrong," he added.
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