Harshan is the Executive Director at Federal Bank, Aluva, kerala.

INTERVIEW

Shri Harshan is the Executive Director at Federal Bank, Aluva, kerala. In this role, he is responsible for the admistative matters, enterprise architecture, IT strategy & innovation, process automation and leveraging technology synergies across Federal Bank. He is well known in the financial market circle as an important resource person and a trainer across all major institutions in Banking and Finance.

After holding his graduation in Economics from Christ College, Irinjalakuda, he did his masters from Mumbai University. He started his career in Industrial Finance Corporation and then moved on to commercial banking in 1976 and joined Union Bank of India. In Union Bank he worked in various capacities predominantly in foreign exchange besides branch banking and in an assignment in London branch where he was one of the core team members to set up the branch. After serving in Union Bank of India for about 18 years he shifted to ICICI Bank as a core team member to set up the bank in 1994. He served about 8 ½ years in various capacities including Head of International Banking & Forex. In 2002 he shifted to Union Bank of California as its Regional Head for South Asia based in Mumbai. In this capacity he was overseeing the Bank’s business in India, Bangladesh, Sri Lanka and Mauritius.

He has been a guest faculty in Bankers’ Training College, National Institute of Bank Management, UTI Institute for Capital Markets etc over the last several years.

Mr. Harshan, Executive Director at Federal Bank talks to Sreeni K.R about his role, vision and future plans about the Bank.

Today many banks are facing problems due to stiff competition. For the last few years the bank has been running smoothly. How did you gain the employees confidence?

In my view the issue of competition does not constitute a critical factor in attracting fresh talent and retaining existing talent. In fact in a fully globalised environment, which industry segment cam claim to be immune from competition? In fact none. What I realize is that despite what ever be the environment, banking and financial space continues to be the most sought after destination for new talent. What is important in sustaining employee confidence is the challenges, empowerment in work content. We are careful in assuring that these attributes exist in the organization as a matter of culture and practice. I believe this would definitely help us in attracting the right talent and also to retain the existing talent.

What is your business philosophy?

Our business philosophy is built around two main pillars. To all in side of the bank, it is “Customer comes first” without whom we cease to exist. The second pillar is to constantly seek to achieve “Federal Bank first” in the minds of customers. Incidentally the second one is the natural byproduct of the first one.





What are the reasons to claim that you are the Pioneers in Enchancing Customer Convenience?

If you listen to the noise heard around in the media for the last several months from peer banks , you will see that most of these are anchored around “internet banking, any where banking, Mobile banking, instant money transfer etc”. Incidentally we have been silently offering all these several years ago without any noise. What we thought was that these aspects are fundamental and are considered hygiene factors in customer convenience and are to be given. When banks were debating the cost benefit analysis of taking ATMs to rural areas, we went ahead and enabled even our rural banks with ATMs. Again look at our FEDE PAY. It is perhaps a superb example of customer convenience. Could you imagine an elderly parents’ son tracking his parents’ telephone bills and paying it from US without moving from his desk? We have made it possible. I would therefore safely claim my position as pioneers in providing customer convenience.

What range of product and service are you providing to the customers?

We are providing all kinds banking and financial products for personal banking customers, Farmers, small business and corporates. The services include deposit and investment products, loan products, remittance services, etc.

Your bank is playing a great role as Banking Partner of NRI s. 30% of your deposits come from the NRI segment. What is the secret behind it?
There is no big trade secret behind it. It is essentially the warmth that Federal bank and its officers and staff display to customers including NRIs. We were always ahead in satisfying the needs of all NRIs irrespective of their economic status. Historically Federal bank has always believed in following the customers and has provided what ever it can in a modest way. In fact NRKs even now remember the warmth of the relationship.

What is the difference between SWIFT and FEDFAST services?

SWIFT is an electronic messaging system intended to format and transmit financial messages among banks in the world. FEDFAST is a cross border payment arrangement of Federal bank for quick remittance of money across borders and uses SWIFT and other messaging systems to carry the messages containing information on remittances.

Information plays a vital role in every day life.What strategic tool have you planned for achieving the competitive edge in todays market?

Success in banking is going to be decided through PPP. Products, Processes and People. My strategy is precisely based on the above. I believe that if we meticulously follow this we will be able to achieve a competitive advantage.

Most of the banks have invested heavily in technology and started reaping the benefits. What is your game plan?

We too believe technology will play a vital role in banking business. We have already invested heavily in technology and will spare no efforts in up grading technology platforms to make it state of the art on an ongoing basis.

Briefly describe the history of your bank?

The bank was started by Late Mr. KP Hormis about 60 years ago. The founder’s vision and farsightedness was instrumental in steering this bank during early years weathering all storms.The bank has grown over the years and is today a leading bank in the private sector. The balance sheet size is about USD 6 billion and the net worth is about USD 375 million. Its shares are listed in Indian stock exchanges and also in London Stock Exchange.

Many small banks are merging with new generation banks. ICICI Bank is currently the single largest shareholder with 20.44 per cent stake in Federal Bank. How would you protect your bank from the possible take over by the ICICI bank in the near future?

The statement is not correct. The largest single shareholder now is IFC Washington with less than 5% share holding. We are internally working always to ensure that we become too costly for acquisition by some bank. Given the current scenario and our fundamentals we are also confident that in a large scale consolation drive, if at all that happens, we will either be able to stand alone or can take the lead as a consolidator.

You have introduced a new product called Federal Bank Pure Gold? Explain?

We observed that the appetite for Indians for investing in GOLD has gone up considerably. However the existing arrangement for investment quality gold was found to be insufficient. This inspired us to introduce the pure gold product. These are Swiss minted gold coins of 99.99 purity and can be bought and kept as investment or for gifting.

What are your schemes for retired persons? What is the interest rate you are providing?

The conventional deposit product with extra interest is available any way. What we are now bringing is the reverse mortgage product for elders. We believe this will be a landmark product from “God’s own Country’s own Bank”.

What are your education schemes? Explain?

We have standard educational loans for higher studies for students wishing to take higher studies in India and abroad.

What are the schemes for financing delivery-based futures trade in agricultural commodities?

This is again a unique scheme from Federal Bank basically to help farmers. The service helps them to hedge their price risk of the produce they hold without any fear of future cash needs on the same.

What new services are you planning for your customers?

We have already launched a product for the young. Besides we are also planning to introduce an on line remittance product from US shortly.

What is your planning for rural areas?

We have a unique scheme called “samrudhi” as a banking inclusion program. The project is intended to cover all the banking needs of the village population. The project is already on in 10 villages as pilot and will be rolled out to other villages shortly.

What is the vision of your bank by 2020?

A formidable national bank occupying not less than 10^th position in Indian Banking and below 500^th in the world .