Had a chance to visit the banking summit conducted by our ICAI. Chief guest of the session were G. Gopalkrishnan ji from CAFRAL promoted by RBI and Arun Tiwari, MD & CEO of Union Bank of India”
In keynotes, CA Nilesh Vikamsey said ” Best time to held the summit of this kind for CAs. There is a lot of balancing work between flood of deposits as against dearth of good Loan Proposals.”
Mr. Arun Tiwari a very enthusiastic and at the same time experienced Banker shared his views on Global of Macro Economic Overview. It may result into breakthrough for the Banking. Only challenges make things work out of the box. He talked about new licenses to the banking. CAs are fit to be participate on the board of directors of the Banks. It is very useful for the banks to have these accounting professionals on the board. Newer roles for CAs may be seen like taxation, financial planning and up selling for the banks. CAs he says are also very good relationship managers for the SME customers and bridge the gap of communication between business and banking.
Mr. G. Gopalkrishnan ji head of CAFRAL promoted by RBI, shared his views of the overall banking scenario. He said that managing the stressed assets is a great challenge for the banking industry. Banks extended liberal credits to the infrastructure which has now becoming the lesson for them in risk management. RBI wants the stressed assets to be brought on the books. Implementation of BASEL III guidelines by the RBI is going to generate huge capital requirement. Government may have to come to the rescue of the banking sector if capitalization is to happen. Indradhanush shall prove a useful scheme floated by the Government apart from Jandhan Yojna.
September CAFRAL is doing a program of September on Forensic Audit. Reserve bank treats CA fraternity as it’s extended arm of supervision. This can be a good opportunity for the CAs. Infra credit appraisal and IT security audit can also be a great opportunity for Chartered accountants.
New concurrent audit guidelines may change the concurrent audit model drastically. CAs should migrate from paper audit to system audit.
CA Vipul Chokshi dealt with areas of opportunities and roadmap to reach next height of practice with banking. New areas he talked about were like Project Monitoring, System Audit and again Forensic apart from routine areas of Concurrent and Statutory Audits
CAG empanelment Empanel with various banks for concurrent audits. Most of the times banks advertise.
One of the things he covered is that the concurrent audit fees need to be improved so as to make it effective.
Reserve bank of India also gets done Department based concurrent Audits. It’s only by invitation.
Firms who are serious in building the concurrent audit practice needs to be build strong team and HR.
All the accounts under restructuring need forensic audit if you go strictly by the guidelines of RBI. State bank India has a panel for Forensic Audit. STATE Bank of Bikaner and Jaipur has come up for making a Panel oflate.
Branch level TDS jobs can be come up as opportunity.
CA Mithil Chokshi shared his views on attractive areas for CAs in banking sector. What’s exciting in Banking? Advance restructuring is very attractive area or practice while economy is sitting on huge NPA. The restructuring comes with forensic shall help a lot. A network of IT professionals with lawyers shall help. Mitihil ji shared that the CAs need to be more practice. Confident to look at bigger clients and bigger assignments.
He talked about the opportunities like LC discounting, FDI, ECB, LRS, overseas investments. FATKA compliance can transform decisions on Banking completely.
One of the tips I liked from Mithil was “Be forward looking advisors and information providers”.
Mr. Amitabh Sen from Kotak Mahindra Bank presented his views on CA skillset. He made a very interesting comment about CAs. CAs are not only in audit and credit, they are also part of sales and IT Teams. Amitabh ji envisages complete transformation in the organizational structure. People related capabilities are going to become very important for everyone generally. CAs capability to network will become very important going forward.
Technical session 2 on NPA problems with Indian Banks and Role of Chartered Accountants. This is moderated by Khushroo Panthaky for Grand Thornton. The panel consisted of Mr. A. K. Choudhary from RBI, Shri Sudhir Dayal from SBI and CA Pankaj Majethia.
CA. Khushroo pointed out that infrastructure, steel, textiles, aviation and mining are most effected as far as NPA is concerned. He also said that the banking industry needs better governance as per RBI.
Question to Mr. A K Choudhary from RBI What is been your experience on classification of NPAs in India vis-a-vis internationally. Mr. Choudhary feels that it’s in line with internationally norms.
When asked about reasons for increasing NPAs in public sector banks are higher than that of private sector banks. The reason he feels is that of exposure in coal, power, infrastructure, etc. He also said that these are core industries and PSBs will keep on exposure. Only thing PSBs will taken more care while lending in high risk sector.
Mr. Asokan from Reliance briefed about the Asset restructuring companies business.
CA. Pankaj Majethia said that Banks are loaded with secret reserves. He shared a beautiful thought “why are international norms as it is on India where we operate in different business models. Why is RBI not having indigenous norms which fit to India?”
Shri. A. K. Choudhary shared that RBI shall act prudent which is neither liberal nor stringent. Asset
Mr. Dayal shared his concern with ICAI. SUGGESTED signature verification model for banks to verify. This can enhance credibility and reduce faking risk. Chartered accountants can become a Trust and recovery Agents (TRA).
CA Pankaj Majethia pointed out that the reporting can improve if the training is done. Send your team for training and even train internally. He also said that balancing is critical for auditors. Don’t make decision ego centric, make them effective.
Mr. Sanjay jain of ARCIL shared his views on sea change the banking business. From physical
CA Nagesh Pinge talked about a Bank called ATOM BANK. This bank will not have any branch. We need to look at gaining expertise and develop trust and gain client confidence.
Mr.Sanjay Jain from ARCIL shared business model of ARCIL. Arcil purchases financial assets
Hemanshu Vasa from Kotak Mahindra Bank shared his views on opportunities for members in Industry. Work like TDS and Service tax for Banks can be done by even the smallest firms. Niche if created, will help the firms get at any level with that.
All in all a lot of useful discussions for developing Banking business. We carried a lot of positive vibes about our overall direction and strategy to be a top player for assurance and advisory in Banking Industry.
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