Central Bank of India offers a helping hand

A future partnership between the Commonwealth Secretariat and the Central Bank of India would be like a “capsule filled with all the right medicine,” according to the Bank’s Chairman and Managing Director.

“There are a number of complementarities which both organisations bring to the table,” explains Srinivasan Sridhar. “While the Commonwealth has the ability to convene senior officials from a number of different countries, our Bank can help disseminate information through a huge network. It is a winning combination.”

The Central Bank of India – the country’s oldest commercial bank – has 36,000 staff and over three and a half thousands branches in India, a large number of which are in rural areas. The bank is closely involved in micro-finance projects and is seen as a pioneer in community based funding for micro, small and medium enterprises (MSMEs). As such, there is a desire on both sides to increase collaboration between the two organisations, both of which are heavily involved in small business development.

The bank first worked with the Commonwealth Secretariat last month at the ninth Commonwealth-India Small Business Competitiveness Development Programme, held in Bangalore in southern India.

This programme, which looks at what companies need to do to become increasingly competitive both at home and abroad, was inaugurated by Dr A P J Abdul Kalam, the former President of India. This aim is realised through a series of seminars, where businesses are exposed to success stories by hearing first-hand experiences from renowned entrepreneurs.

At one of the panel discussions held during the programme Mr Sridhar spoke about the potential benefits of merging public sector banks to strengthen their capital base.

During the discussion he commented on the situation now facing many MSMEs. “The managements of MSMEs are now under great pressure to find markets and managerial talent, especially those who can contribute to innovation which results in changes in processes in their units during these tough times.”

Following this programme the Bank and the Secretariat are in discussion over potential future collaboration. Mr Sridhar has outlined three key areas in which the two organisations could continue to work together.

The first is through continued involvement in future Commonwealth-India Small Business Development Programmes, which Mr Sridhar believes are important for small businesses to “exchange experiences and lessons learned from their respective companies.”

The second targeted area of collaboration is through helping inclusive and integrated MSME development in Commonwealth developing countries so as to bring about innovative financing mechanisms for this sector. “The global downturn over the last two years has reinforced the need for inclusive growth both socially and financially.”

“By encouraging small scale entrepreneurs to set up businesses their livelihoods can be improved markedly.”

The third area marked out by the Chairman is the development of sustainable habitats. “It is important to help businesses understand the need to take into account how they use natural resources.

“The Central Bank of India and the Commonwealth can work together to help MSMEs incorporate environmental and sustainable measures into their structures.”

Ram Venuprasad, the Secretariat’s Enterprise Development Adviser, welcomed these proposed areas of future collaboration. “As Executive Director of the Export-Import Bank of India and the Chairman of the National Housing Bank, Mr Sridhar has been involved with the Commonwealth-India Small Business Development Programme since its very inception. As such, his personal involvement is key in growing a future partnership with the Central Bank.”

Secretariat Links:

• Country Profile: India
• Economic Development