From being a probationary officer in the State Bank of India (SBI) in 1980 to its Chairman in 2017, Rajnish Kumar saw the many changes in India’s banking sector that greatly impacted the country and its economy. In his first book, The Custodian Of Trust, he recounts how his term, from 2017 to 2020, was rather momentous, wherein the responsibilities he shouldered were rather unique.

The book talks about how the Indian banking sector was going through one of its most tumultuous phases. The problem of non-performing loans (NPLs) had severely impacted the balance sheets and profitability of banks, especially those in the public sector. It sheds light on the aftermath of demonetisation, YES Bank fiasco, the crisis in Jet Airways and NPLs, among others.

Speaking at the Management Development Institute (MDI), Gurgaon on the occasion of his recently released book, Kumar batted some of the most relevant and recent topics- digitisation, privatisation of banks, the various transformations in the banking industry, the evolution of fintech and much more. He was joined by dignitaries like Madnesh Kumar Mishra, Joint Secretary in the Ministry of Culture and former Joint Secretary in the Department of Financial Services, Ministry of Finance, Shailesh Pathak, former CEO of L&T Infrastructure Development Projects and Subhomoy Bhattacharjee, Consulting Editor, Business Standard, that added great value to the whole discussion. 

In an exclusive chat with BW Businessworld, Rajnish Kumar revealed some interesting stories that go behind his book.

On The Idea Of Writing This Book

Because it is a memoir, whatever came to my memory is captured in it. Sometimes I do realise that there were many more things that could have been added to the book. But this must be something that happens with each writer. 

So, in the period in which I was the MD & the Chairman, it was a very tumultuous period, I never expected that I will be ending my tenure with the arrival of COVID. I have tried to be as contemporary in this book like people often ask me about YES Bank or Jet Airways or the NPLs. While the media writes about this in a bad light, I felt that not enough research work has been done yet. People are simply blaming the bankers and their side of the story must also be brought to the notice of the public. The other section in the book is all about SBI-  all my personal and professional stories. I have to say that this is my first attempt, with no prior experience in writing. But I'm happy that the final product has come out. I am happy with the feedback.

On The Book's Audience

This book is, in a way, for everyone in the banking and finance industry- the students, the academicians, financial journalists, and the common man who is interested in what happened in YES Bank and Jet Airways. So, that way, the audience is very wide for this book. It is what it is strictly an academic book in that sense, not even an autobiography. 

On Releasing The Memoir Now

Somebody mentioned that people generally write a memoir after seven or ten years. But I believe that after these many years, who will remember what all happened. So, it is better that I do it immediately. After 10 years, I may not recall every nuance. And at this point in time, everything is fresh in my mind. So that's why I think the timing was it was correct.

On Choosing This Title

I chose the word 'trust' because banking is all about trust. And then by saying 'The Custodian of Trust', it is not about Rajnish Kumar, it is about the State Bank of India. Had I chosen 'The Custodians of Trust', it would have become a book about all the banks. Hence, this name is in particular as people have huge trust in the State Bank of India.

On Advice To Young Leaders To Combat Challenging Times

There are 'n' number of books on leadership. I never wanted this to be a book on lessons for leaders. It simply recounts whatever happened and as it happened. I have definitely shared some of the practices and principles I followed or the lessons I learned from my teachers and family. What has helped me particularly this one is the positive attitude towards work and life. I believe that the people who join the State Bank of India as probationers, all will intend to practice this. This will give them the capability to understand from others' point-of-view as well.

On The Future of Indian Banking System

There may be a change in its form. There is a possibility that banks will be non-existent, as people are discussing these days. But this may happen in a different form. Digitisation and the adoption of technology are changing the way we do business, and that is true for everything. Everything we do in our life has changed the way we engage- how we book a car or a movie ticket. Everything now revolves around the mobile phone. So, banking is no exception, obviously. And with the emergence of blockchain technology, artificial intelligence, machine learning models, every aspect of banking is being touched.

On Challenging The Challenges

My period was full of challenges as the head of the bank. Demonetisation, the merger of six banks and the resolution of all the high-value non-performing loans have been massive challenges. However, I saw it as a great achievement for not only the bank or for myself, but for the entire banking industry. And the new legislation which came in. 

Also, handling the COVID crisis as a banker, there was a unique challenge to it and there again, I took the compassionate approach to deal with it. I draw a lot of satisfaction that even at that time, we took good care of our employees in very difficult circumstances. Banking is an essential service, our people had to go to the right branch and give the service. It was indeed a unique experience. To sum, in these three years of my chairmanship, everything which was to happen was unique and challenging

On The Sturdiness Of The Indian Banking System Vs Global Counterparts

In the last five years, it has certainly improved. While it had its moments of crisis, it has emerged stronger. In terms of the adoption of technology, we can compare it with the best in class.

On Banking Being An Over Regulated Industry

Banking everywhere across the globe has become very over-regulated. After 2008, there is a huge change in the approach of the regulators. And it is an over-regulated industry. The compliance costs are very high. In many banks, there's more riding on the compliance side rather than on the business.