Session ii md & ceo - adfiap- botswana visit - kishor piraji kharat

1

DFIs and the Agenda for Development:

Expanding Possibilities

November 03, 2016

Presentation Outline

2

Role of DFIs

Current trends in Development Finance

Challenges faced

Opportunities

Remaining sustainable in the age of disruption

Role of DFIs

3

DFIs across countries set up as public or quasi-public financial intermediaries with the principal objective of:

identifying and filling the gaps in a country’s financial sector

and capital markets; essentially addressing market

inefficiencies

providing dedicated long-term finance for activities or sectors

crucial for overall development of the economy

providing technical/ managerial expertise to new projects as

well as for expansion/ modernization of existing projects.

4

Role of DFIs

DFIs have been playing a key role in: promoting industrial and infrastructure development across

countries besides developing financial architecture in some

countries.

building an institutional structure for entrepreneurship

development, credit delivery and capital market development

investing in under-served projects and under-capitalized

sectors to ensure sustainable and balanced growth and

development.

5

Current trends in Development Finance

The role of DFIs has expanded over the years from

Development Financing to Financing

Development.

Many DFIs have now embarked on the path of

universal banking.

However, DFIs continue to fulfill its policy

mandate of nation-building in a financially

sustainable manner.

Challenges Faced

6

7

Challenges faced

Technological innovations – digital disruptions, crypto

currencies etc.

Emerging competitors – Commercial banks/ FinTech/ NBFCS/

Payment Banks etc.

Shifts in consumer behavior - rising customer expectations

Changing regulatory and legal framework – changes in the

macro prudential approach, capital adequacy requirements etc.

Changes on a macro-economic level

Opportunities

8

9

Opportunities

Transforming the organization's business strategy to

stay relevant in the age of disruption

Embracing technological developments in the

organization structure

Specifically in a developing country context, pursuing

the goal of financial inclusion by ensuring last mile

connectivity

10

Opportunities

Enabling entrepreneurial development, skill

building and innovation by assisting

government schemes like Make in India, Start-

up India, Stand Up India, Digital India, etc.

Product and service innovation catering to the

shifting consumer demographics and rising

customer expectations

Incorporating sustainability and business

responsibility as core principles of functioning

Remaining sustainable in the age of disruption

11

12

Remaining sustainable in the age of disruption

Staying relevant by: Being nimble footed and innovative

Adapting to the latest technology in the arena of banking

and finance – making FinTech as the vital cog in driving

the business model

Expanding the Bank’s footprint and bringing superior

banking services to the masses, ensuring accessibility

and convenience

13

Remaining sustainable in the age of disruption

Developing internal competencies and external

relationships:

Partnering various financial institutions and industry bodies

within the country as well as outside for promoting cross-

border investment and financing.

Optimizing governance structure

Enhancing internal efficiency by focusing on capacity-building

Nurturing a dynamic work environment

Robust risk management system

14

Remaining sustainable in the age of disruption

Invest in sustainable and profitable businesses by:

Sustainable Financing - growing green debt capital market

by issuing green bonds and encouraging renewable and

clean energy financing

Adhering to the Environmental,

Social and Governance (ESG)

standards while lending to

minimize adverse impact on the

environment and society at

large.

Remaining sustainable in the age of disruption

15

Re-aligning business models with the changing needs of the

global economy while:

Pursuing a customer-focused strategy of sustained innovation

Raising capital to support the transaction costs of new

products and services.

Continuing to invest in medium and long term projects for

overall infrastructure development and higher social returns.

Supporting government initiatives, assisting in capital formation

thereby contributing to the nation’s developmental goals.

Innovate or Perish

The organizations that will survive today’s economic environment and succeed in tomorrow’s are those who will continuously innovate.

16

Transforming DFIs

Transforming Economies

Transforming Lives

Thank You