Trainers' Programme in New Horizons in Credit and Financial Services

It is heartening to note that Indian economy is marching ahead to achieve a double digit GDP in the near future. All sectors of the economy, except agriculture sector are performing exceedingly well. Even in respect of agriculture sector, there is a pick up though much needs to be done. While liquidity with the banking system and demand for credit is increasing at faster rate, credit off-take is still not much as expected. This is partly due to hesitancy on the part of branch managers/credit officers who perceive high credit risk. Further, though Indian economy has witnessed an impressive and quick recovery from the financial crisis, the level of NPAs is stll high. Despite, restructuring of advances in a big way, it has not been possible to arrest the trend in fresh NPAs. Consequently, the net NPA percentage as on March end, 2010 was more than 1.0 which is a matter of concern. More importantly, banks have to become friendly to borrowers by offering efficient credit related services at competitive rates. In addition, branch managers and credit officers must have a good understanding of recent developments in credit area which include : introduction of cash flow system for assessment of working capital, setting up of Credit Information Bureau (CIB), introduction of stricter NPA norms, establishment of Corporate Debt Restructuring (CDR) body,
amendment of Securitization and Reconstruction of Financial Assets Act, purchase and sale of NPAs, etc.
Similarly, the numerous challenges in the task of prevention of slippage into NPAs, in deciding about
appropriate methodology for loan pricing, credit rating and in the management of credit risk and credit
portfolio, etc., call for new skills to be acquired by branch managers and credit officers. Alongwith credit,
banks have been permitted to take up many financial services as a part of universal banking business
through their designated branches. This will help them to diversify their existing business and thus earn
income from it. The same underlines a need for the bankers to have working knowledge about distinct
financial services as well as current developments in the financial services industry.