Sanjiv Bajaj, chairman and managing director of Bajaj Finserv Ltd, and president of the Confederation of Indian Industry, reinforces his belief that the Indian banking system is quite stable but advises the banks to work on risk management to avoid a fiasco similar to those at Credit Suisse and Silicon Valley Bank (SVB).
In an exclusive interview with Zee Business, Bajaj also praised the Reserve Bank of India, saying it is a strong watchdog regulator and has been keeping a close watch on the banking system for a long time.
“India’s banking institutions are quite stable. There are many banks in India with strong functioning. But the Indian banks can’t ignore the recent global developments in the banking sector,” he told Zee Business.
In light of the bankruptcy and bailouts of Credit Suisse in Switzerland and Silicon Valley Bank in the United States of America, Bajaj says the Indian banks should not ignore their risk management factor. “Even though the Indian banking system is strong, recent developments show that they should focus on their risk management.”
However, he believes that the RBI is an able regulator doing its job diligently.
“RBI is a watchful regulator. It has strict parameters to govern the banking system, and it has been monitoring them closely for over the years.”
He, however, has a word of advice for financial institutions and listed companies. Bajaj told Zee Business.
“It is the responsibility of financial institutions to develop a strong mechanism to not fall victim to meltdowns. Listed companies need be more careful. They should also have a strong functioning and consolidate it with time.”
Ranks data a great tool
Bajaj says that data has emerged as an important tool in the decision-making of companies. “This a time when digitalisation is changing every industry. It is benefiting millions of people. In such a situation, data has become important for every company’s business. Most of the decisions in companies these dfays are based on data.”
He says startups are playing a vital role in the paradigm shift through digitalisation.
Bajaj says his company is preparing to launch its Unified Payments Interface service Bajaj Pay soon.
The launch of Bajaj Pay has been in the company’s pipeline for long. Bajaj Finance in January 2021 confirmed that it was coming up with a in Q4 of the same financial year.
