I would say money holds all power, except the spiritual. What is it that money cannot buy today?

I think the economic situation is improving, level of business confidence is improving. Self-sufficiency in our country has been the policy of various governments. We have to do away with dependency, and for that, our savings rate has to go up. Then only will funds be available for investment. As far as corruption is concerned, I think the Central Vigilance Commission is doing a very good job. Corruption-free service will have to be a fundamental right of our citizens.

What if there were no money in this world? We went for money as a medium of exchange because the barter system was not available for everyone. So, taking two steps backwards will not help. Money has come to stay. It is a matter of perceptions. Money by itself does not grant social status.

I rely on my own knowledge as far as my own finance goes. Of course, there are inputs, which I use to my betterment. As far as investments are concerned, I firmly believe in bank deposits. No way are private banks a competitor as an organisation, except may be in the metro cities. In fact, they are in class banking, whereas we are in mass banking. That said, I would not consider myself to be a competitor to Citibank or Standard Chartered because they are global organisations, whereas I am national.

But PSUs are also waking up. Liberalisation has thrown such challenges on the banking market. Competition is like a war. Everything is fair in love and war, but so far as competition in banks is concerned, for us, it is subject to our being within the guidelines set by the RBI. You have to strike a balance between prudence and social requirements, sound banking vs social banking. For example, we are considering giving loans to tobacco farmers; some of them have committed suicide and that is really pathetic.

In cases like this, we will have to explore the possibility of financing the same crop, or an alternative cash crop. See, so long as tobacco is not illegal, there is no problem for banks to provide finance.What can I say about fly-by-night finance operators? See, the system provides all facilities to the investor. The additional interest they get from outsiders is their risk. Finally, money is what money does. Comfort, security, options... maybe it is all these things you say. (B Vasanthan is CMD of the Andhra Bank.)

-- As told to Punam Mohandas