Executive Interviews: Interview with Anil K Khandelwal on Rebranding Strategies of Bank of Baroda
June 2006 - By Dr. Nagendra V Chowdary

Dr. Anil K Khandelwal
Chairman and Managing Director Bank of Baroda

• In one of the books, Sumantra Ghoshal along with Gita Piramal and Christopher Bartlett, in the context of changemanagement, talked about the valley of death. They've talked about the different stages the company goes through. What was the experience of BoB in this entire transformation?
  It is too short a time to undergo various phases. But I think, BoB in its history, especially after 2000, has followed its own pattern. I think 'death' would be a little hard word but bank has faced its own low points. IT was delayed and it had demoralized people and our expectations in the market had also gone down. Analysts were virtually writing off the bank. If you call it the valley of death, that is fine but then, we recouped very fast from that point. Branding helped us a great deal at least in the public eye.

• So this has revitalized and given new focus to this entire exercise?
  As I said, the brand was making a new promise to the world that we are alive and kicking. It was making new promise to the world that we have boundless energy, the sun reflected that. Now, many other initiatives had to follow this vision that the brand was transmitting.And then we startedmany things, we started on technology, we signed agreement with world class HP and I am happy today that in record time, core banking is introduced. Some of the branches are already rolled out. Then we had an ATM expansion strategy.We had one of the lowest numbers of ATMs; in March 2005 we had 160 ATMs. Today we have over 600 ATMs. Similarly, we introduced new products, multicity cheques,web-based remittance andmany other products. Another most important thing that we could implement is 8 to 8 banking concept. Originally I thought that we would confine it to Bombay or a couple of branches but the response we got made us do it. Eventually today, we've over 500 branches that work 8 to 8, which is amazing. And we became almost a leader in 8 to 8 banking among public sector banks and many banks have started following BoB today.We've also started 24 hour banking. So I think branding set a stage for many new initiatives to be implemented in a hassle-free banking. I must credit this achievement to our all-40,000 staff who got galvanized through this branding exercise, who could also understand that branding is not merely a cosmetic affair but sets a responsibility. In the beginning I told you that originally we did launch a transformation program that sets a direct responsibility or gives someone a disturbing feeling but branding created an aura of romance in the bank and a promise; slowly, when other changes were introduced, our people were able to respond to a grand vision that branding also carries responsibility.

• Could you rate 5 to 6 critical success factors for any Indian bank to be globally competitive?
  Focus on intangibles. Brand is one of the most important things. After all, I have always believed why someone goes and buys Lux or Cadbury. It's all the same. Most soaps carry the same fragrance or the ingredients of chocolate are the same. I think it is the brand building. And merely advertising is not brand building that you do more and more. There is a responsibility to be consistent with quality, delivery promise. I think if you falter on that, then your brand can get damaged. This consistency and this promise to provide consistent quality and maintain it almost of a six-sigma variety, then your brand gets built up. And also the responsiveness to customer when they face problem. I think that a brand comes in a package in terms of service, quality, and most importantly, in terms of people as to whether they own the brand. Whether they understand the responsibility towards the brand and whether they do everything possible proactively to sustain the image of the brand. And also developing an organization culture which is sensitive to maintain the brand positioning. I think most people confuse brand building with logo, advertising and a brand ambassador. How do you create symphony and synergy in all this and how do you consistently reflect about your responsibility as a result of brand launch? I think there is tremendous amount of responsibility in the corporate management and its people to maintain and sustain the brand image.

• If we might take Bank of Baroda on at least the 4 critical success factors on a 1-5 scale of critical success factors, 5 being the highest, on intangibles how do you rate Bank of Baroda?
  On intangibles, I'll rate BoB on 4.

• On consistency?
  We are building consistency, I'll say only this much. Because I always find that quality has no Victoria Terminus, and therefore we are building consistently. As I said we have moved from a complacency board to a very organic phase and therefore that is our greatest challenge.

• And the third critical success factor, i.e. responsiveness to customers?
  We've developed great amount of sensitivity to customers. For example, today all customer emails and complaints, I personally handle. I've almost abolished the office for customer service from the corporate office. It is in my secretariat. One officer helps me. I read all complaints, I reply to all emails. I take drastic decisions if I find that the customer has been rubbed on the wrong side. Because that itself sends a message and that helps in building the brand. I get such good letters from customers sometimes. They feel surprised. Their expectation frompublic sector banks is delay, non-responsiveness and apathy. That is how they are nurtured for several years and when they find a quick delivery, I think that's important. So on customer service, we are constantly improving. Second is 8 am to 8 pm banking. That has done tremendous good to bank's reputation.

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