Nawalji Sahay-” Writers are a Natural Fit for an Independent Director’s Role”
Our team spoke to the Senior Banker and Certified Independent Director, Nawalji Sahay recently. Here are the excerpts from the interview:-
- Reflecting on Your Banking Career:
As a seasoned banker, you have witnessed significant changes in the financial sector over the years. What are the most critical lessons you’ve learned from your banking career, and how do you plan to apply these insights in your role as an independent director?
Nawalji Sahay- Banking, as a profession, is unique. I say so based on my personal experience and growth story. Banking is just not about accounting or taking deposits and lending money. It offers numerous diverse opportunities to grow, as a person and a professional, mastering the art of interpersonal relationships, honesty, integrity, empathy, and social responsibility — to name a few. People look at you as a Banker with trust and more so as a friend, philosopher and guide and that way one earns their respect.
Now coming to the second part of the question I can tell you with lot of conviction that my career in banking started with archaic heavy ledger maintenance and manual accounting days and progressed through unthinkable changes which went all the way to internet/ phone banking or what people now experience as faceless banking. It has been a wonderful journey — full of challenges and learning. Financial literacy is one major asset that one masters while working in the Bank. I also got a unique opportunity to work at SBI Canada for four years at the turn of the century. I leave it to your imagination how challenging and exciting those complex, dynamic, experiences must have been. Change management and embracing changing technology played a big role in my success. All these combined in my progress as a multifaceted professional, abreast with the changing technology, a competent leader, and a socially responsible person.
Further, there are some critical and major exposures that I feel contributed a lot to make me what I am today — Exposure to diverse functions in the Bank, Working across various departments of the bank like Retail, Personal and Commercial Loan and Investment, Forex and International banking, Relationship Management. The personal relationship and rapport that one gets an opportunity to develop, contributed a lot to make me socially and professionally quite popular. Man management, problem-solving, crisis management, decision-making ability, risk management, strict regulatory compliance, and adherence to ethics, all played an important role in my career.
I can add that one cannot pinpoint one attribute which would contribute to a role as an Independent Director after all that I have shared before. In summary, banking as a profession provides a rich platform for developing a wide array of leadership skills, from strategic thinking and risk management to ethical governance and global perspective, all of which are essential for becoming a well-rounded and effective Director in any company. They all make me, I believe, eminently suitable for a role as an Independent Director. With all my experience I am sure I can be relied upon as a resource for guidance or better say a guardianship role.
2. Transition to Independent Directorship:
The transition from a full-time banking career to an independent director involves a shift in mindset and responsibilities. How have you prepared for this transition, and what unique perspectives do you believe you can bring to the boards you aspire to join?
Nawalji Sahay- After saying adieu to my banking career I worked almost for 10 years with an Asset Reconstruction Company as part of their top management. Since I had the opportunity to oversee the affairs of the company from the top, I acquired the nuances of looking over the affairs of the company and also providing directions for its growth. Though not a Board member I had the opportunity to sit regularly in the Board meetings which had very eminent Board members representing Foreign Investors, Tata group, Banks like HDFC, and ICICI, and chaired by the retired Chairman of SBI and later by a former MD of a Foreign Bank. Earlier even at the Bank, I had the opportunity to act as Secretary to the Local Board of SBI and as such attended multiple Board meetings with the Chairman of SBI presiding.
So my transition to the Board can be seen as a natural progression from all the professional experiences I acquired over four decades.
3. Balancing Writing and Corporate Governance:
As an author, you have a unique ability to articulate complex ideas and narratives. How do you see your writing skills complementing your role as an independent director, particularly in areas such as corporate governance and communication?
Nawalji Sahay- One will agree that Writers excel at conveying complex ideas in a clear and engaging manner. They come out with very thought provoking ideas. Their understanding of the environment around can be seen as a valuable resource and crucial in corporate governance, where clear communication is needed to articulate policies, explain decisions, and ensure transparency across the organization. This skill is crucial for a person in Directorship role where clear communication is needed to articulate policies, explain decisions, and ensure transparency across the organization. Writers also have extraordinary eyes and ears to scan the environment around and it can be very crucial and valuable in a Board role.
Both writers and corporate governance professionals analyse situations critically and they excel at conveying complex ideas in a clear and engaging manner. A writer’s ability to structure information logically and persuasively ensures that these documents are effective, clear and understandable.
Further, Writers often explore ethical dilemmas and societal issues in their work, fostering a deep understanding of ethics. This is directly relevant to corporate governance, which revolves around ethical decision-making, integrity, and accountability.
As such I have no hesitation in saying that I think writers are a natural fit for an Independent Director’s role.
4. Challenges in Modern Corporate Governance:
With your extensive experience in the banking industry, what do you identify as the biggest challenges facing corporate governance today? How do you envision addressing these challenges in your capacity as an independent director?
Nawalji Sahay- Modern corporate governance faces a number of significant challenges, shaped by an increasingly complex and interconnected global business environment. These challenges require companies to be more transparent, ethical, and responsive to a wider range of stakeholders. With all the experience that I have acquired I can definitely come up with certain options to meet the challenges pervading the corporate world.
As I see Companies often face pressure from shareholders and investors to deliver short-term financial performance, sometimes at the expense of long-term sustainability and growth, and as a result, they often err on corporate governance. They compromise on values for short-term goals. There are frequent attempts to take a shortcut in meeting all the statutory and legal requirements. It is a very dangerous trend. The Regulatory environment is unfortunately really complex and as such extra precautions have to be taken for strict adherence. There are some other key areas where the Board has to remain extra alert. For example: Data privacy and security, environmental and social responsibilities, human rights violations, protecting all stakeholders’ interests etc.
As a Board member, one has to have full and updated knowledge and information on corporate governance norms and rules and a non-compromising approach to its adherence.
5. Vision for Board Stewardship:
What is your vision for effective board stewardship, and how do you plan to contribute to fostering a culture of transparency, accountability, and ethical leadership within the organizations you serve?
Nawalji Sahay- As and when I get an opportunity to be a Board Director, I would like to focus most on the following:
- Ensuring and fostering a culture of transparency, accountability, and ethical practices on the part of the management as a prerequisite for the long-term success and integrity of the organization.
- The ethics and value system must start with me. My integrity, honesty, fairness, knowledge, and behavior
- Be firm on my value system
- Be open and accessible to share concerns, ideas, and ethical dilemmas, if any
- Encourage and support feedback
-Be committed and honest in my role and appreciate the responsibilities that I carry on my shoulders.
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Brief Profile
Nawalji Sahay is a banker and financial professional with over 40 years of experience in Banking, Financial Management, Training, Organizational Leadership, Strategic Planning, Strategic Business Relations, and Alliances in BFSI sector, primarily in India and Canada. He started his career as a probationary Officer of SBI in 1979.
He is also a Certified Independent Director.
