Published – April 5, 2018 | Times of India
Renu Sud Karnad Was Chief Guest at MICA Convocation
Ahmedabad: At a time when the call for privatization and merger of banks is growing louder, the managing director of HDFC Ltd, Renu Sud Karnad, said that there was an opportunity for privatization of public sector banks. Karnad interacted with the media ahead of the 23rd convocation ceremony of MICA, organized on the institute’s campus in Shela, Ahmedabad, on Wednesday. “We all know that in public sector banks, there is an opportunity for privatization,” Karnad said. “I really think that in the next five years, PM Narendra Modi’s government will see that some of these changes happen.”
When asked whether privatization was the way forward, Karnad said, “In some situations, it is not necessarily only privatization that might work; it could be mergers.” Weaker banks may merge into stronger banks, Karnad said. “Currently, weaker banks are not able to work out any mergers if the private sector is coming in,” she said. “The way the private sector system functions is very different from the way public sector banks function. There is more accountability and more performance-oriented situations. Eventually, that is going to help the system.”
During her convocation address, Karnad also spoke about indiscriminate lending. “Indiscriminate lending sans realizing the impact on the quality of the portfolio would not auger well for any housing finance company’s balance sheet.” The balanced approach has ensured that HDFC has been recording healthy year-on-year growth for the past 40 years with one of the best NPA figures globally, she said.
Some 222 students of the institute were given degrees during the convocation ceremony, including 173 students from the two-year postgraduate diploma in management-–communications (PGDM-C) batch, and 46 from the one-year crafting creative communication (CCC) batch. Three from the fellowship in management–communication (FPM-C) batch were awarded doctoral fellowships.
President and director, MICA, Shailendra Raj Mehta, said: “From July 2019, we will increase the intake in PGDM-C course by adding 60 more seats.”
(From left) Tridip Suhrud, member of governing council MICA, managing director of HDFC Ltd, Renu Sud Karnad, and Shailendra Raj Mehta president and director of MICA at the convocation ceremony