The Bengal Chamber of Commerce organised an Online Panel Discussion on "COVID 19-The Changing Landscape of India's Financial Sector: What Lies Ahead" on 28th May, 2020. The session was moderated by Mr Tamal Bandyopadhyay, Consulting Editor, Business Standard and Mentor - Finance and Banking Committee, The Bengal Chamber and the discussion focused on the role of bankers amidst COVID 19, microfinance, small finance banks and the strategies for empowering small players, mutual funds and the market, insurance sector and the commodity market in Covid era.

The eminent speakers were Mr. Rajkiran Rai G, Managing Director and CEO, Union Bank of India, Mr Gaurang Shah, Whole-time Director and President, Kotak Mahindra Bank Ltd, Mr Alpesh Shah, Managing Partner, India and MD and Senior Partner, Boston Consulting Group, Mr Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Co. Ltd, Mr Ajay Kanwal, MD and CEO, Jana Small Finance Bank, Mr Jaspal Bindra, Executive Chairman, Centrum Group, Ms Lakshmi Iyer, CIO- Equity, Kotak Mutual Fund and Mr Rishi Nathany, Head Business Development and Marketing, MCX India Ltd.

In his address, Mr. Rajkiran Rai G, Managing Director and CEO, Union Bank of India stressed that preparing and adapting to new upcoming challenges is the key for the changing landscape of India's financial sector. He said the lenders will be able to meet the expectations of the business community. According to him, the issues of the depositors cannot be overlooked, and more stress will have to be given on the liability side to retain customers. He further said that there will be a shift of credit growth in favour of the PSBs, adding that depositors will expect an interest rate of 5.5 per cent.

Mr. Gaurang Shah, Whole-time Director and President, Kotak Mahindra Bank Ltd, said that said the retail, a low-cost liability base, is key sustenance factor of the banks. Mr. Alpesh Shah, Managing Partner, India and MD and Senior Partner, Boston Consulting Group stated that the financial ecosystem is in uncharted territory and the situation is evolving every day. It is imperative that financial service organizations be flexible, agile and act decisively in response to the challenges that COVID-19 has posed. He warned that there is no playbook for business leaders to deal with the unparalleled enormity of COVID-19.

Mr. Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance Co. Ltd. said that the pandemic has had a significant impact on the life insurance industry. With over two months of no economic activity, there is a massive liquidity crisis amongst customers and hence they are addressing their immediate financial needs, rather than invest towards long-term needs like Life Insurance. On the products side however there has been an increasing demand in term and health insurance products. Mr. Ajay Kanwal, MD and CEO of Jana Small Finance Bank said around 65 per cent of micro-finance borrowers felt the COVID-19 impact to a large extent. He said customers at the bottom of the pyramid are most vulnerable and the right kind of support should be extended to them.

Mr. Jaspal Bindra, Executive Chairman, Centrum Group in his address mentioned that it is a very mixed picture for the NBFC sector. A lot will depend on the sector, e.g. in the more secured sector, like the housing business collections are better so it's easier to manage the cash flow. However, for people like in the sector dealing in unsecured personal loans, it will be difficult due to low collection. As such, large section of the NBFC sector is still struggling. Till other schemes don't kick in it will be a problem. Ms. Lakshmi Iyer, CIO - Equity, Kotak Mutual Fund said that there is a lot of confidence on mutual funds at the moment. SIP flow continues to be robust. Mr Rishi Nathany, Head Business Development and Marketing, MCX India Ltd. was of the opinion that the government reforms for the agri sector has been satisfactory. It is opening up new avenues for the farmers.

The webinar was attended by more than 300 online delegates and received wide coverage in the media.