SBI Chief in Conversation with RBI Governor Raghuram Rajan

Reserve Bank of India Governor Raghuram Rajan and State Bank of India chairperson Arundhati Bhattacharya spoke at an interactive session of a banking conclave held in Mumbai. Here are the highlights from the interaction:

• Rajan: New banks won't compete with banks
• Rajan: Payment banks bring in new players
• Rajan: Payment banks to act as feeders to universal banks
• Rajan: Licences for small banks may be announced next month
• SBI chief: Capital goods suppliers' order books looking up
• SBI chief: Manufacturing seems to be getting off bottom
• SBI chief: Rural and urban demand stay muted
• Rajan: Slow pace of rate-cut transmission by banks a concern
• Rajan: Real estate prices need to correct
• Rajan: Need to wait for markets to clear
• Rajan: Good monsoon to lead rural demand
• Rajan: Long-term yuan depreciation worrisome
• Rajan: Need to watch export front
• Rajan: Premature to panic on exports
• SBI chief: We have a 'missing middle' level management
• SBI chief: Trying to recruit from campus
• SBI chief: Plan to hire on contract from campus
• SBI chief: Getting right manpower is a challenge
• SBI chief: ESOPs or stock options will help keep top management engaged
• SBI chief:  Little incentive to lend to NPA (non-performing assets) accounts
• SBI chief: Ever-greening comes from lack of trust
• Rajan: Universal banks have to give full services
• Rajan: Banking will become more competitive
• Rajan: Banks customers will get rewarded
• Rajan: Credit spreads large on recoveries
• Rajan: Regulator cannot nip innovations
• Rajan: New models of currency will come
• Rajan: Increasing our market intelligence
• Rajan: Crowd-funding doesn't have clear rule