Thursday, November 5, 2015

National-Conference-on-Retail-Credit-Issues,-Challenges-and-Redressal-Mechanisms.

A National Conference on Retail Credit - Issues, Challenges and Redressal Mechanisms was organized by the Department of Finance, GITAM Institute of Management, in collaboration with Indian Bank on 31st October, 2015. Dr. M.S.V. Prasad, Head of the Department of Finance was the Convenor of the Conference.

Prof. K. Siva Rama Krishna, Dean and Principal, GITAM Institute of Management, in his Welcome Address, highlighted that retail credit poses a big challenge as there are many issues and mechanisms involved and also stressed the need to mitigate risks. Prof G. Subrahmanyam, Vice Chancellor, GITAM University in his address provided a brief overview of retail credit with reference to Indian and world economy. He highlighted the need for security in retail credit sector and called for an intensive research to know about the sector since it is now crowded with banks offering lots of financial products. In the Opening Remarks, Mr. V. Jagannadha Rao, Assistant General Manager, Indian Bank, Visakhapatnam, defined the concept of retail credit as a credit given to consumers for purchase of goods and services, with banks deriving only a thin interest margin. He stressed on the concepts of home loan, vehicle loan, mortgage, rent and cash.

The chief guest of the event was Shri C.Rajendiran, IRS, Principal Commissioner of Customs, Visakhapatnam. He highlighted that the economy needs to be kept going as nothing can be achieved or improved if we are stagnant. He mentioned that Rs. 6,46,000 crores will be taxed this year. He said that in the retail credit sector, a focus on the skills, talent and energy of young India are essential. He stressed on the need to prevent misuse of credit facilities and to attract foreign investments.
The conference saw three vibrant sessions with lots of data, opinions and ideas generated about the retail credit sector, with both bankers and customers putting forth their points of view and airing the positives and negatives of this sphere. Over thirty papers were presented and the abstracts were published.


The Valedictory Session saw the presence of the Pro-Vice Chancellor, GITAM University, Prof. D. Harinarayana who spoke of the change in the mindsets of consumers with spending and dependence on credit seen as a virtue in comparison to the old idea of saving more. The Chief Guest Sri M.Sudhakar Reddy, Chief Manager, Indian Bank spoke of massive effort made by the Indian banking system to include every social sector and the even the poorest and the most backward as beneficiaries of banking services especially loans. He emphasized that though there were instances of misuse of loan facilities, there were many models of economic growth and entrepreneurship based on the retail credit support offered by banks. He spoke of his great pleasure in associating with GITAM Institute of Management as part of the CSR activities of Indian Bank. A large number of students, research scholars, faculty members, banking and finance personnel from various institutions participated in this event.

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