GV Rao: A Journey in Banking, Compliance & Corporate Governance
Our team spoke to senior banker Mr GV Rao recently. Here are the excerpts from the interview:-
- Career Journey and Insights
“Throughout your extensive career in banking, what have been the key milestones that shaped your professional journey? Can you share any pivotal experiences that prepared you for a role as an independent director?”
GV Rao: I have been involved in several significant milestones in the banking sector, including the implementation of prudential norms, the Y2K transition, computerization, the enactment of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act for the recovery of stressed assets, and ongoing technology upgrades. These experiences have enhanced my ability to manage complex projects and navigate regulatory landscapes effectively.
I have had the privilege of working in various states across with different cadres in the banking sector. Each posting presented unique challenges, which I embraced as opportunities for growth. This diverse exposure to different regions and individuals has greatly boosted my confidence and adaptability to the circumstances.
Throughout my career, I have managed both branch offices and corporate offices, where my primary focus has been on fulfilling responsibilities to stakeholders, ensuring compliance, and overseeing audits. My tenure in the Treasury and International Division has further equipped me with expertise in corporate governance and regulatory compliance while driving business development.
These experiences, coupled with my strong inclination to share my knowledge for organizational growth, have inspired me to pursue a role as an Independent Director. I am particularly interested in contributing to Non-Banking Financial Companies (NBFCs), Banks, fintech companies, and other organizations where treasury and finance functions are critical. I believe my background and commitment to excellence in governance and compliance make me well-suited for becoming Independent Director.
2. Challenges in Banking Sector
“The banking sector is often faced with numerous challenges ranging from regulatory compliance to technological disruption. As a seasoned banker, what challenges have you encountered and how have you adapted to these changes within the industry?”
GV Rao: The banking sector continuously faces a multitude of challenges, ranging from technological advancements and regulatory compliance to managing non-performing assets (NPAs) and addressing staffing shortages. The industry has achieved significant milestones, such as Y2K readiness, branch automation, complete computerization, and the implementation of core banking solutions, largely due to periodic staff training and timely software upgrades. I was part of all these challenges. All these challenges are met out successfully by employee trainings, developing the culture of complying policy and regulation by all cadre.
3. Aspirations of Being an Independent Director
“You have expressed an interest in pursuing a role as an independent director. What motivated this transition, and how do you believe your background in banking will contribute to your effectiveness in this new role?”
GV Rao: I have had the privilege of working closely with the top management of banks, particularly in my role as Deputy General Manager of Treasury. In this capacity, I have been responsible for securing approvals for a majority of our investment decisions from Board-level committees. My role has also involved significant engagement during the pandemic, where I was instrumental in presenting proposals for approval and ratification in compliance with numerous regulatory and government guidelines issued for implementation by banks.
This extensive experience has ignited a strong interest in me to serve as an Independent Director in Non-Banking Financial Companies (NBFCs), Banks, fintech companies, and other organizations where treasury and finance functions are critical. My background provides me with a deep understanding of treasury operations, regulatory compliance, and strategic financial management, making me well-suited to contribute to the governance and oversight required in these sectors.
4. Leadership and Governance
“Effective leadership and governance are crucial in both banking and corporate boardrooms. From your perspective, what are the key qualities that a leader must possess to be successful in these environments?”
GV Rao: In any organization, the synergy between leadership and governance is pivotal to achieving long-term success and sustainable growth. A key aspect of this synergy is the support and empowerment of employees by leadership, particularly by the controller, to drive business initiatives forward.
Leadership through Empowerment, Governance through Compliance
Integrating Leadership and Governance are essential for a leader to possess success in the organisation.
The intersection of leadership and governance is where organizational success is forged. Supportive leadership that empowers employees, coupled with a strong governance framework reinforced through training, creates a resilient and thriving organization. This holistic approach ensures that the organization not only meets its current objectives but is also well-prepared for future challenges and opportunities.
5.Future of Banking
“With the rapid advancements in technology especially AI, the future of banking is likely to undergo significant transformations. What are your predictions for the banking industry over the next decade, and how should aspiring finance professionals prepare for these changes?”
GV Rao- AI will become the corner stone of the Banking sector applicable across public sector banks, private banks and other financial entities. AI will drive efficiency in numerous areas of banking.
Aspiring professionals must adapt to this technological shift. They should acquire new skills, gaining deep understanding of AI applications and developing strategic mindset accordingly. Gaining domain specific knowledge and data science analytical skills are must for the new entrants. Soft skills and banking experience will always play a key role.
Customer segments will undergo a vast change in the next decade. Within the next decade Millennials will dominate the banking sector The bankers of tomorrow are not bankers at all but the bankers of tomorrow are technologists who will enable banking experiences used by the customers across the digital landscape.
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Brief Profile
GV Rao is Former DGM-Treasury, Central Bank of India and a Certified Independent Director.
