Hyderabad, March 19: There is a second-rung leadership crisis in many top companies because in a recently liberated country like ours, there is an underlining feudal tension which hampers the hierarchy system, said former RBI chief YV Reddy. Speaking on role of leaders, he said, “A good leader in a company would ensure successors are also strong and able and can take their position in future.”
Reddy was a speaker on the last day at the National Conference on Leadership and Corporate Governance in Turbulent Times, organised by the School of Management Studies, University of Hyderabad yesterday.
Asked about his views on the recently increased RBI loans, he said if he had been the governor, he would have done the same. Reddy also felt it was not fair to compare Indian and American loan interest rates even though both were fighting inflation. “Even though the American interest rate is less than ours, economic conditions in both countries are different. The loan rates are in response to economic cycles which are different. We also have unemployment and other problems which influence loan rates,” he said. He also criticized public sector companies for increasingly following private sector models.
Renu Challu, managing director, State Bank of Hyderabad threw light on importance of leadership in the corporate world. “Leadership helps in times of crisis as crucial decisions need to be taken with high degree of self assurance. Managing team spirit is also important in a company,” she said adding, “The GDP is better in countries where there is strong corporate governance.”
Selected students and teachers who had participated in paper presentations during the conference were felicitated.
–Agencies