“All Villains Were…”: Top Bank Official On Perception Change Towards Business People
V Vaidyanathan, the CEO and MD of IDFC First Bank, shared significant insights on Wednesday regarding the evolving societal perception of business people. During a fireside chat with Business Today Editor Sourav Majumdar at the BT500 Wealth Creators Summit, he described how there has been a positive shift in the way people view entrepreneurship in recent years.
To emphasize his point, Mr. Vaidyanathan drew comparisons with old Bollywood movies, highlighting the contrast between the portrayal of villains in the past and the evolving depictions in today”s films.
Mr Vaidyanathan reflected on the portrayal of businesspeople in Indian movies from the 1980s and 90s, noting that characters like Pran, Prem Chopra, and Danny were often depicted as villains. He observed a shift over time, emphasizing that contemporary films no longer tend to portray businesspeople in such negative roles.
“If you go back in time, if you see the villains of Indian movies in the 1980s and 90s, Pran, Prem Chopra, and Danny – they were all businessmen. Now, nobody portrays businesspeople as (villains),” The banker elaborated while responding to a question on what had changed in times of being a career banker and an entrepreneur banker.
He was attending a session titled “Financial Roadmap To $5 Trillion Economy” in the summit.
He highlighted that today, entrepreneurship is widely accepted and recognized as a significant contributor to employment generation. He pointed out that the government is actively promoting the idea, emphasizing the current emphasis on improving the ease of doing business.
“Now, entrepreneurship is accepted. Entrepreneurship is seen as a source of employment creation. The government speaks these days about ease of doing business,” the banker added.
Mr Vaidyanathan has also reflected on the evolution of the Indian business landscape. He noted that two to three decades ago, small-scale industries dominated with companies having market caps of no more than Rs 1,000-2,000 crore. However, there has been a remarkable shift, with contemporary firms now boasting market caps ranging from Rs 5 to 10 lakh crore. Vaidyanathan attributed this change to significant improvements in governance, leadership quality, and infrastructure over the past 10-20 years.
He further pointed out that project financing has undergone a transformation, with clearances now being obtained upfront to prevent project delays. Additionally, he highlighted a notable shift in the financing approach, with many institutions now providing funding after a project is completed.
Mr Vaidyanathan”s career trajectory is marked by his tenure at Citibank from 1990 to 2000. Upon joining ICICI Bank in 2000, he spearheaded the establishment of its Retail Banking division. His rapid ascent continued as he earned a position on the Board of Directors in 2006 at the age of 38. Subsequently, at 41, he assumed the role of MD and CEO of ICICI Prudential Life Insurance Company.
In 2010, Mr Vaidyanathan departed from the ICICI group and took a strategic step by acquiring approximately 10% equity in a modest, publicly-listed real-estate financing NBFC with a market cap of Rs. 780 crores ($140m in 2012). His vision was to transform it into a commercial bank. Initiating substantial changes, he restructured the Board, renamed the entity Capital First, and assumed the dual role of Chairman and CEO.
To actualize the transition to a commercial bank, Mr Vaidyanathan orchestrated the merger of Capital First with IDFC Bank. Consequently, he assumed the position of MD and CEO of the amalgamated entity, which was rebranded as IDFC FIRST Bank in December 2018.
