##izing quality data. present it systems of banks are essentially built to manage structured data. there are lot of business insights and value in semi - structured and unstructured data. cbs of today is essentially a transaction processing engine which handles structured data. banks need to build systems to capture and analyze unstructured and semi - structured data as well. in short, banks need to look at beyond core banking and move from a mere transaction processing system to an information processing system with focus on crm, data warehousing, business intelligence, risk management etc. i would like end my thoughts on the subject quoting einstein, who once said, “ any fool can make things bigger more vibrant and more complex. it takes a touch of genius and lots of courage to move in the opposite direction ”. hr tools : necessity for next wave of growth the last decade was impressive for the indian banking industry. the banking industry has grown at an average annual growth rate of over 18 percent over the last decade, with the return on assets at around 1. 1 percent as on march 31, 2012. however, even though opportunities have increased for banks, some hr issues and challenges have emerged that banks will have to resolve if they are to emerge successful in the medium to long term. the main hr challenges that banks face today relate to recruiting and retaining talent. historically, indian banks have attracted talent in the country, which has helped them not only develop a strong leadership base but also an efficient frontline. however, in the coming years, owing to a large number of retirements, and attrition rates across organisations, banking sector in general, and public sector banks, in particular, may face a growing manpower crisis. how do they cope with this? attrition is manageable to a certain extent provided acquisition keeps pace with attrition. the solution lies in not just recruiting skilled professionals but in nurturing the talent in a manner so as to provide the right atmosphere to enable them grow with the institution. we also need to realise that unless this talent is properly trained, motivated and mentored ; it is difficult to retain them. the other hr challenges faced by banks are related to putting in place systemic succession planning, empowering the “ second rung ”, stimulating all cadres of employees, managing effective change within the organisation and outsourcing. while the hr has a lot of work to do while it comes to dealing with the issues cited above, the one related to outsourcing requires more than a

- taking. let us see the innovation stories in other sectors. innovation in the retail sector has come a long way in the recent years. it is revolutionising the way we transact business or communicate with persons or do research or play games. the extent and reach of the likes of amazon, flipkart, google, twitter, facebook, wii, x - box and so many more innovations is just amazing. speak of innovation and technology, one cannot resist talking about apple and steve jobs. what amazes everyone is the vision of this person who thought so ahead of his times. let us not get into his style of functioning ; the gadgets that he has given to us are world class. the user friendly nature of the gadgets that apple produces makes them the “ most preferred ” in their class. be it the i - pod, i - phone or the i - pad – they continue to dominate the sales in their respective markets with their innovative products. can banking in india become the ultimate customer experience? it is aptly said that, narayana hrudayalaya is walmart personifying the service spirit of mother teresa. by thinking differently about everything from the unusually high number of patients it treats to the millions for whom it provides insurance – and by thinking a lot like the world ’ s largest retailer – the hospital group is able to continually wring out costs. the hospital negotiates for better prices and buys directly from manufacturers, cutting out distributors. starting with cardiac care, an equipment - intensive specialty, made it easier for the hospital innovation excellence : what banks can learn from top innovators in other industries, accenture bis central bankers ’ speeches group to expand into other areas that require the same infrastructure. can banks look to reduce costs like the way narayana hrudayalaya has done? the key lesson for banks to learn is that perhaps they need not wait for their customers to decide what they want but to take the lead when it comes to developing new products or technologies. companies like apple or google did not wait for innovation to happen, rather they were proactive and their innovation processes never stop. what should the banks do to emulate these examples? of course the first fundamental pre requisite is to refine the quality of data. it is this data which facilitates banks to profile their customers, which in turn would enable them to be well on a growth trajectory using technology. while banks have made investments in building technology infrastructure, the same cannot be said of building and digit