Picture by S.H. Patgiri

He finds the difficult terrain challenging but is overwhelmed by the efficiency of his staff. O.P. Bhatt, the chief general manager of State Bank of India (SBI), North Eastern Circle, who joined recently is a man with a vision. He’s committed to translating into reality SBI’s motto: “The biggest bank for the smallest man”.

Born in 1951, this National Science Talent Search Scholar in Physics, Bhatt has done his masters in English literature. He has held several important posts at SBI London, Washington, Jaipur and Lucknow. The banker spoke to Teresa Rehman about his plans to make the North Eastern Circle a responsible “corporate citizen”.

Excerpts from the interview:

Q. What is SBI doing to promote border trade?

A. The region is unique in that it shares only around two per cent of the border with the rest of the country. Nearly 98 per cent comprises international border. Moreover, the entire region is landlocked. This offers a huge potential for cross-border trade, mainly with Bangladesh and Myanmar. Although a considerable amount of trade is flowing through the banking channel, approximately an equal amount is presumably traded outside this channel.

The SBI aims at bringing more trade into the banking channel. Opening branches at places where land customs stations are located, opening satellite forex desks and upgrading certain ‘C’ category branches to ‘B’ category to handle all types of foreign exchange transactions.

The bank has recently opened an extension counter at Zokhawtir under the SBI Champhai branch in Mizoram to facilitate trade with Myanmar. Many border trade centres such as Karimganj and Dawki already have SBI branches. SBI plans to open more such branches in border trade centres that do not have any banking facilities as yet.

Q. Why has SBI taken community services banking so seriously?

A. The concept of community services banking (CSB) was first introduced in 1973 with a view to undertaking various welfare and social activities, both in the banking and non-banking sectors, to uplift the quality of life of the downtrodden.

The bank also undertakes non-loaning welfare activities by way of voluntary efforts of the staff members. Besides, the bank also makes donations to government-sponsored national funds for relief and rehabilitation as well as to voluntary organisations.

Q. What is the contribution of SBI in the development of small-scale industries (SSI) in the region?

A. SBI is undertaking upgradation of the traditional crafts and industries. Already 31 heritage projects, all over the country, have been taken up by SBI under the said scheme. The first such project taken up in Assam is for the bell metal industry of Hajo. The second project covers the terracotta craft of Asharikandi in Dhubri district. The SBI is conducting a six-day motivational and training programme for terracotta artisans at Asharikandi with effect from May 31, 2004.

Q. Do you have any special schemes for women?

A. Women are our preferred customers as repayment (by them) is always better than men. We also have schemes like the Stree Shakti scheme and entrepreneurship development programmes for women. In fact, we are planning to open an all women’s branch in Shillong. It is an affirmation that we respect women and that we encourage them as business personnel.

Q. Why is SBI’s initiative in IT considered path-breaking?

A. We have the largest network in the circle consisting of 450 computerised branches. The computerisation leads to prompt and better customer service, longer business hours, lower transaction time and higher customer satisfaction due to single window service. The integration of the back office systems will provide truly “anywhere banking”. It is being rolled out to our circle later this year.

At present, we have 49 online networked ATMs in the NE circle. We propose to bring this number to 105 by theyearend. Currently, 28 branches in the circle offer Internet banking services. Special modules for corporate customers have been devised whereby the customer can pay salaries and make third party payments using the Internet banking channel. We plan to bring the total number of branches offering Internet banking to at least 75 by the end of the year.

This facility is at present being offered to the corporate customers at 11 branches on request. Tele-banking is available at 14 branches in the circle. SBI Connect is the communications platform that will form the backbone for the implementation of the core banking solution. Till date, 56 branches and offices are networked under SBI Connect. Work is in progress to hook 97 more branches and offices to the network.

Q. Please explain the SBI roadmap for installation and networking of ATMs in the region.

A. There are 49 SBI ATMs installed across all the seven states in the region. There are also two other card-issuing branches at the Gauhati Medical College and Fancy Bazar. The bank had also put up a mobile ATM at the Pragati-II fair held in March 2004, the only bank to have done so in the region.

For the year 2004-05, the bank has an ambitious plan of installing 56 more ATMs covering the entire region. This will bring the total number to 105 by December 2004. The bank’s ATMs in the region are a boon to card-holders as they have access to their accounts wherever they may be, 24 hours and seven days a week.

Some of our ATMs, especially in Guwahati, like the ones at Bora Service, Dispur Petrol Pump, New Guwahati and Maligaon are doing exceptionally well. In fact, these rank among the best in the country in terms of amount of cash dispensed.

Q. How has the SBI performed in development banking — rural credit, KisanCredit Card, assistance to Self Help Groups and NGOs.

A. So far we have issued 74,183 Kisan Credit Cards (KCC) to farmers, with the loan amount disbursed being around Rs 5,379 lakh. The share of Assam is the highest, at 51,073 KCCs. Last year alone we issued 39,825 KCC from the entire region. This year we have set ourselves an ambitious target of issuing 60,000 to farmers in the entire region. Of this, around 36,000 will be issued in Assam alone. We have also tried to popularise medicinal and aromatic crops. For individuals and members of SHGS, rural housing schemes like Gram Niwas and Sahayog Niwas have been rolled out.

Q. What about SBI’s new approach in Personnel and HRD matters?

A. We lay stress on fast-track promotion by giving greater responsibility at a relatively younger age.

The bank also lays a lot of emphasis on specialisation in credit, marketing and professional orientation of employees. We also have multiple reward and recognition schemes, employee empowerment, refresher courses for employees, and sponsoring officials for management and higher studies abroad.

Q. In what ways do you think the role of SBI in the Northeast is unique?

A. The circle is no different in terms of systems and procedures. In fact, the manpower is more sincere and even slightly better. But the Northeast tends to get a little isolated in terms of industrial growth due to its geographical location and other logistics.

I am looking forward to investing in worthwhile projects.