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Review

Transforming Banking Practices

Book Review by Bhaskar Parichha

Title: Transformational Leadership in Banking

Author: Multiple. Edited by Anil K. Khandelwal

Publisher: SAGE Publications/ New Delhi, 2021

India’s banking system, as it has evolved in the past two hundred years, is a mixed bag. It has cooperative banks, domestic financing institutions, scheduled commercial banks, regional rural banks, pre-reform traditional private sector banks, tech-savvy private banks, and foreign banks. One can add to this protracted list are the newer entities — small finance banks, payments banks, and the large number of mobile applications.

Even as India’s banking sector has expanded tremendously in the past few years, there is a lot to be desired from these financial institutions. Banks have, of late, been the government’s whipping boys, and the so-called reforms have only been half-baked. Bank mergers have taken place but they are yet to show up on their balance sheets.

While Non-Banking Financial Companies (NBFCs) have grabbed the space vacated by commercial banks, financial stability of banks is at crossroads. Monitoring and supervision have fallen drastically, reflecting in the persistent growth in Non-Performing Assets (NPAs). Post -Covid, there is an unfathomable shadow on India’s banks. It is in this scary backdrop that this book carries enormous importance. Transformational Leadership in Banking: Challenges of Governance, Leadership and HR in a Digital and Disruptive World by Anil K. Khandelwal comes in handy for the beleaguered leadership of the banking sector.

A thought leader, author, international speaker on leadership and governance, Anil K. Khandelwal is an acclaimed authority on human resource and leadership in the banking sector. He is a rare transformation leader. Transforming Bank of Baroda from a staid Public Sector Banks (PSB) to one of India’s most valuable international banks won him many awards, including the Asian Banker Singapore’s Lifetime Achievement Award. His brand of human resources leadership and its application in business turnaround also won him the Lifetime Achievement Award from the National Human Resource Development Network. He also chaired the government-appointed committee on HR in PSBs and was a member of the first Banks Board Bureau for banking reforms and selection of whole-time directors.

The book, as the blurb says, “offers a roadmap on leadership which is all about converting adversity into an opportunity for transformation. Through an excellent set of articles, case studies and interviews, this book offers a way forward for transformational leadership of the Indian banks.” Despite their many achievements, public sector banks continue to face several challenges, such as increasing non-performing assets, depleting market share and low market capitalization.

The volume is comprehensive because it deals with almost all aspects of Indian banking. With a Foreword by former Comptroller and Auditor General of Inida, Vinod Rai, the book has three parts. In part I there are essays from academics and practitioners. Part II deals with case studies. The last part deliberates on perspectives from experts. With  more than thirty chapters — each chapter contributed by a doyen in the banking sector and the academics — the 500 plus page book is clearly laid out with  sections on governance, leadership, human resources and of course the future of the banking environment

In the introduction, Dr Khandelwal writes: “The book comes at a time when Indian banking is undergoing crisis.” It gives a strong message that banks become robust institutions by addressing governance, leadership, talent and culture. The author’s argument is that the banking sector is likely to remain in a perpetual crisis mode, unless these measures are initiated immediately. 

The book, as the titles suggests, is on leadership in banking. Evidently, it has chapters on changing context of governance and leadership in public sector banks, the digital revolution, future of work in BFSI (Banking, Financial Services, and Insurance) organisations, human capital and ethical bank governance, leadership choices in building better governance in the context of regulation or culture, strategic human capital management and banking governance (unexplored symbiotic relationship in PSBs), honoring legacy while embracing evolution: (the ethics narrative in State Bank of India), leadership experience and fifteen actionable insights from the trenches, organizational transformational and an agenda for Indian banks, coaching and mentoring in the backdrop of the unsung and underutilized warriors of leadership development, grooming leaders in public sector banks, crafting and living in  bank culture et al. 

There are also some illuminating pieces on leadership in times of crisis. For example, lessons from COVID-19. Employer branding to build human capital advantage, trade unions in the digital economy, skilling  a new currency,  a new manifesto for chief human resource officers in the era of digital change, wellness and yoga investment for the bankers,HR as strategic business partner in SBI ,sustainable people processes and leadership development in Bank of Baroda, the human resources story of ICICI Bank, digital transformation of HR at Union Bank of India, fear psychosis in the executives, and  bank directors require training in specific areas of technology are the other chapters which make a value addition to the book.

In the context of competition and digitalization requiring new business models, the book argues for a fundamental shift in the structure and process of governance, including board-level autonomy, CEOs tenure and compensation, people process, talent development and building a leadership pipeline, to make banks resilient and future-proof. 

Transformational Leadership in Banking is both well-timed and edifying. With admirable standpoints on the issues of authority, management and HR in a digital environment, the book is a clear blueprint for makeover and restructuring. The book is, mostly, meant for public sector banks, and will be of immense value to policymakers, regulators, board members, CEOs, researchers and to all those who are  in  the leadership roles and the public on the whole. 

Dr Khandelwal’s book makes an overriding case for crucial and cohesive reforms in India’s banking sector. It offers timely solutions by focusing on several issues. A must-read for anyone interested in the well-being of Indian banking.

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Bhaskar Parichha is a journalist and author of No Strings Attached: Writings on Odisha and Biju Patnaik – A Political Biography. He lives in Bhubaneswar and writes bilingually. Besides writing for newspapers, he also reviews books on various media platforms.

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PLEASE NOTE: ARTICLES CAN ONLY BE REPRODUCED IN OTHER SITES WITH DUE ACKNOWLEDGEMENT TO BORDERLESS JOURNAL

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