Manickam’s career has been in public sector banking. While at Bank of India, he oversaw big banking jobs and how the bank worked with regulators, and had executive duties in several areas.
The bank says his knowledge covers banking jobs, managing risk, and obeying regulations; plus he knows about HR, and looking at – and getting back – money people owe. These skills match what the bank needs to grow and keep its finances stable.
Manickam has been on the boards of Tamil Nadu Grama Bank and BOI STAR Investment Managers. He was also Chairman of Star Union Dai-ichi Life Insurance Company, so has experience in governance in both banking and insurance.
Strategy and Governance
As Chairman, Manickam will advise ESAF’s board and management on strategy. He is to make governance better and make sure managers’ decisions are watched over independently. A good Chairman can make a board work better, and carry out long-term plans.
His background in obeying regulations is especially useful for small finance banks, as regulators are paying more attention to governance, the quality of assets, and protecting customers. A Chairman who knows about regulations can help the board’s priorities match what regulators expect.
Manickam’s experience in looking at, and getting back, loans in trouble could affect how ESAF deals with bad debts; the bank recently moved a large set of NPA loans, showing how important it is to get money back. Better ways to watch and get back debts could help asset quality.
It is also likely the new Chairman will stress how things are done efficiently. His experience in banking jobs suggests he will look at how jobs are done and how risks are controlled. These can help the bank grow while keeping operational risks down.
People and Work
He is also good at human resources. A sensible HR approach helps keep good staff and build a culture that knows about risk. For a small finance bank making its reach bigger, good people policies are vital to doing things and obeying rules.
The Small Finance Bank World
Small finance banks work in a competitive and regulated area, and must serve people who are not often served, while making a profit and having enough capital. Choices of leaders and governance have a big effect on plans and risk.
ESAF has been growing while dealing with old problems with asset quality. Bringing in a Chairman with experience in jobs, risk and getting money back shows governance is the answer. Investors, people who put money in the bank, and regulators usually see such appointments as a good step towards stability.
What to Expect
Soon, people involved will watch for things the board does to make risk controls and watching credit better. Expect updates on governance, clearer plans for getting money back, and a closer match between plans and how much risk the bank will take. The Chairman can be a link between the board and managers on these things.
With time, good independent watching over can help ESAF improve its strategy and become stronger. Manickam’s board experience in different areas puts him in a position to lead the bank through its next phase of growth, and meet regulatory needs.
For a bank fixing its balance sheet and wanting to grow, naming an experienced Chairman is a sensible move. It shows the board wants governance, managing risk, and steady performance, as ESAF Small Finance Bank goes forward.
