In his address after inaugurating Vijaya Bank’s 1,000th branch here, Mr Chidabaram asked banks to reorganise, consolidate and grow to global scale by embracing the rapid pace of change.

Stating that new kind of organisational development — going for both organic and inorganic growth, was inevitable, the finance minister encouraged them to pick up banks to consolidate.

Observing that they had no choice as consolidation was way to the future, he said do not wait for external forces to thrust this upon you as it is the only way to growth.

Invest in people

Pointing out future organisations driven by technology would be flat, he urged banks to invest in its people and train them to develop multiple skills.

“Look inwards and shed the heavy baggage of the past and just sprint ahead to realise your dreams,” he said adding “time has come realise dreams of building institutions that was both inclusive as also provided windows of opportunity for new stream of talent that was emerging.” 

Noting that the challenge before the country was to keep pace with the change to hold its head high, Mr Chidambaram said India’s strength lay in its size (population) and ability to build capacity.

Mr Chidambaram also distributed V-GenUth passbooks for three children, education loans to two young adults, agriculture loan to a customer besides loan for two women entrepreneurs.

IFCI was right

Later, to a query, Mr Chidambaram, while upholding IFCI’s decision to reject the Sterlite-Morgan Stanley bid, averred he was sure more bids would come when rebidding process for stake sale begins. He, however, refused to state when this would happen. The IFCI Board had rejected the conditional bid seeking management control after three days of negotiations on December 19.

IFCI, which had plans to raise money to manage its growing non-performing assets, had turned down a bid from the consortium of Sterlite Industries and Morgan Stanley to buy a 26 per cent stake.

IFCI had received three bids, of which NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, emerged as the front-runner by quoting the highest price.