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terms of the quality of financialservices provided. Factors such

as skills, attitudes

andknowledge of personnel

play a critical role indetermining the competitiveness

of thefinancial sector. The

quality of human resources

indicates the ability of banks todelivervalue to customers.

Capital and technology are

replicable, but not human

capital whichneeds to be viewed

as a valuable resource for the



achievement of competitive

advantage.The primaryemphasis needs to be on

integrating human resource

management (HRM)strategies

with the business strategy.HRM strategies include

managing change,

creatingcommitment, achieving

flexibility and improvingteamwork. These processes

underlie thecomplementary

processes that represent the

overt aspects of HRM, such as

recruitment,placement,



performance management,

reward management, andemployee relations. Aforward

looking approach would involve

moving towards self-assessment

of competencyanddevelopmental needs as a part

of a continuous learning

cycle.The Indian banking

industry has been an importantdriving force behind thenation¶s

economic development. The

emerging environment poses

both opportunities andthreats, in

particular, to the public sector



banks. How well these are met

will mainlydepend on the extentto which the banks leverage

their primary assets

i.e.

, humanresources in the contextof the changing economic and

business environment. It

isobvious that the public sector

banks¶ hierarchical structure,which gives preference

toseniority over performance, is

not the best environment for

attracting the best talent

fromamong the young in a



competitive environment. A

radical transformation of theexistingpersonnel structure in

public sector banks is unlikely

to be practical, at least in

theforeseeable future. However,certain improvements can be

made in the

recruitmentpractices as well as

in on-the-job training andredeployment of those who are

alreadyemployed. There are

several institutions in the

country which cater exclusively

to theneeds of human resource



development in the banking

industry. It is worthwhiletoconsider broad-basing the

courses conducted in these

institutions among other higher-

level educational institutions sothat specialization in the area of

banking and financialservices

becomes an option in higher

education curriculums. In thearea of informationtechnology,

Indian professionals are world

leaders and building synergies

between the ITand banking



industries will sharpen the

competitive edge of our banks.

Conclusion

How close are we to the visionof a sound and well-functioning

banking systemthat I outlined. It

is fair to say that despite a

turbulent year and manychallenges, we havemade some

progress towards this goal.

There has been progressive

intensification of financial

sector reforms, and the financial



sector as a whole is more

sensitized than beforeto theneed for internal strength and

effective management as well as

to the overallconcerns for

financial stability. At the sametime, in view of greater

disclosure andtougher

prudential norms, the

weaknesses in our financialsystem are more apparent

thanbefore.There is greater

awareness now of the need to

prepare the banking system for

thetechnical and capital



requirements of the emerging

prudential regime and a greater focuson core strengths and

niche strategies. We have also

made some progress in

assessing ourfinancial systemagainst international best

practices and in benchmarking

the futuredirections of progress.

Several contemplated changesin the surrounding legal

andinstitutional environment

have been proposed for

legislation.



The NPA levels remain too

large by international standards

and concerns relatingto

management and supervisionwithin the ambit of corporate



governance are being

testedduring the period of downturn of economic activity.

The structure of the financial

systemis changing and

supervisory and regulatoryregimes are experiencing the

strains of accommodating these

changes. Certain weak links in

the decentralized banking andnon-bank financial sectors have

also come to notice. In a

fundamental sense, regulators

andsupervisors are under the

greatest pressures of change and



bear the larger responsibilityfor

the future. For both theregulators and the regulated,

eternal vigilance is the price

of growth with financial

stability.We should strive tomove towards realizing our

vision of an efficient and

soundbanking system of

international standards withredoubled vigor. Our greatest

asset in thisendeavor is the fund

of technical and scientific

human capital formation

available in thecountry. The



themes which are being covered

in this Conference under structural,operational and

governance issues should help

in defining the road map for the

future.R E F E R

E N C E

SITE NAME

WWW.BANKOFBARODA.C

OM



WWW.ICICIBANK.COM

WWW.STATEBANKOFINDI

A.COM

WWW.BAMBOOWEB.COM/

ARTICLES/B/E/BENCHMAR

KING.HTML



WWW.DENABANK.COM

WWW.SUCCESSFULMANA

GERS.COM

WWW.BIS.ORG/PUBL/BCBS123.PDF

WWW.IBA.ORG.IN/PLRMAI

N.ASP



WWW.RBI.ORG.IN/SCRIPTS/

PUBLICATIONS.ASPX

WWW.BANKINGINDIAUPD

ATE.COM

WWW.BIMALJALAN.COM/S

PEECHE011.HTML



WWW.BIMALJALAN.COM/SPEECHE011.HTML

WWW.BANKNETINDIA.CO

M/BANKING/BOVERVIEW.

HTM



MAGAZINE NAME

BANKING ANNUAL-

BUSINESS STANDARD

IBA-BULLETIN



BOBMAITRI

THE FINANCIAL EXPRESS

BANKING ANNUAL-

BUSINESS STANDARD

PROFESSIONAL BANKER-

THE ICFAI UNIVERSITYPRESS



BOOK NAME

BANKING AND PRACTICE-

P.N.VARSHNEW

BUSINESS MANAGEMENT-CAIIB EXAMINATION

MONEY, BANKING,

INTERNATIONAL TRADE



AND PUBLIC FINANCE---

D.M.MITHANI

terms of the quality of financial services provided 02

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