A New Beginning: The Turnaround Story of Indian Bank

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“…The lady leader has indeed shown indomitable spirit in turning around Indian Bank to high quality–high performance Bank…an eminently suitable guide for practicing bankers…”

—From the Foreword by Dr. APJ Abdul Kalam, Former President of India

“…Her remarkable success in bringing Indian Bank back to profit has turned her into Award Winning Celebrity of the Indian Finance Scene, feted for her turnaround expertise. Amongst her many good qualities are limitless energy, great persuasive power, and above all, common sense…”

—The Economist

“…Observes say Kumar’s operations expertise--technology and other back office processes—lies at the heart of her success…” —The Financial Times “…Kumar has clearly resuscitated Indian Bank…” —Business Standard Banking Annual “…Ranjana’s hands-on interaction with the employees was one of the major factors that helped in motivating the staff…human resource development seems to be one of her key strengths...”

—The Economic Times

“…The biggest challenge was to motivate the staff and convince them of the sincerity of our efforts. I had personally toured over 500 branches, motivated thousands of staff, and organised many training programmes with the view to shore up their morale and give them a sense of confidence and courage to face reality and move on to resurrect the bank…surely the staff and the union were not always forthcoming but it was understandable; once they understood the pitch and purpose of the mission, they came along all the way…”

—From the Preface

Author(s): Ranjana Kumar
Publisher: Tata McGraw-Hill Publishing Company Limited
Year: 2008

Language: English
Pages: 324
City: New Delhi

Cover
Contents
1. The Story in Brief
1.1 India Bank A Phonix
1.2 Good Old Days
1.3 Trust Betrayed?
1.4 What Went Wrong?
1.5 Sagging Emplyee Morale
1.6 NPA Management Deficient
1.7 Compass of Revival
1.8 HR Initiatives
1.9 Training
1.10 Management Structure
1.11 Innovations on Retail/Structured Credit
1.12 Credit Monitoring
1.13 Satisfying Results
2. Challenging Mission
2.1 When I became Chaiperson
2.2 Upbeat and Bullish Mood
3. Bank Failures-Global Experience
3.1 Impact on the Community
3.2 The U.S. Experience
3.3 Studies on Board Management and Supervision
4. Indian Bank-In Retrospect
4.1 Arbuthnot Bank
4.2 The Indian Bank
4.3 Years of Slow but Steady Growth: 1907-1947
4.4 Overseas Operations
4.5 Nationalisation of Banks
4.6 Making of a Strong Bank
4.7 Towards Globalisation of Indian Banking
4.8 Immediate Impact
5. Troubled Waters
5.1 Decline in forutne
5.2 Credit Management
5.3 Funds Management
5.4 Public Interest Litigation (PIL)
5.5 Fear Psychosis
6. Early Navigation
6.1 Study of the Problems
6.2 Re-capitalisation
6.3 Non-achievement of SRP Targets
6.4 Report of the CII Task Force
6.5 Report of the Verma Committee
6.6 Report of the Management Advisory Group
6.7 Second Phase of Study
7. Restructuring Plan
7.1 In-House Plan
7.2 Main Objective
7.3 Important Point of Restructuring Plan
7.4 Operational Restructuring
7.5 Support from Government
7.6 Other Support
7.7 Restructuring Plan-The Aspects Considered
7.8 Directions of the Government
8. Plan Implementation-I
8.1 Role of the Board
8.2 The Core Turnaround Team
8.3 Deputaion of Executives form the other Banks
8.4 Sensitising the Staff Members
8.5 System Based Initiative
8.6 Planning
8.7 Corprate Goverance
8.8 Marketing
8.9 Building the Right Tempo
8.10 Image Building and Handling Adverse Criticism
8.11 Credit Management
8.12 Standard Assets Monitoring
8.13 Psychometric Approach to Human Resource Management (HRM)
8.14 Rationalisation of Branches
8.15 Indirect Merger and Opening of New Branches
9. Plan Implementation-II
9.1 Steps Towards financial Inclusion
9.2 Rehabilitation of Overdue Borrowers under Agri Sectors
9.3 Structured Loan Products under Agriculture
9.4 Recover Management
9.5 NPAs-the Termites
9.6 Factors Responsibile for NPAs
9.7 Roles of the Board and CEO
9.8 Overseas Operations
9.9 Interaction with Diplomats, Customers and Staff
9.10 Meeting with Officials of MAS
9.11 The Colombo Branch
9.12 Subsidiaries
10. Recapitalisaation
10.1 Presentations of Performance
10.2 Role of Unions and Associations
10.3 Since My Leaving
11. The Art and Science of Turnaround
11.1 Falling in Line Syndrome
11.2 Commnication
11.3 Communication Through Audio Cassette
12. Lesson form the Turnaround
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Index