Friday, December 31, 2010
In India too, there were mixed events and developments in political, economic and sports arena. It was so unfortunate that as many as fifteen types of Scams in almost all the fields like Sports, Judiciary, Defence, Banking, Telecommunication, Religion, etc took place. At the same time in just an year there were twenty five Heads of States from different countries including USA, UK, France, China, Russia, etc visited India for exchange and business.
We all hope that the new year 2011 and the second decade would usher in much more in every walk of life.
Thursday, December 30, 2010
SBI being a giant PSB, has always played a responsible role since inception even as IBI when RBI was non-existent. The first mandate to SBI was to go rural and it did. Today, the industry has a variety of players in public, old and new private, foreign, cooperative, RRBs and Local Area Banks. And there are NBFCs, Financial Institutions and Micro Finance Institutions too.
SBI should, in fact, be designated as a Maha Nava Ratna Bank for its contributions to the nation, economy and industry for nearly two centuries. But unfortunately, many tend to blame the bank while “Best Banks Surveys” always undervalue SBI. How sad! For example, in a recent survey published by Business Today (Dec 26, 2010) issue, the list of top-10 Best Banks for over seventeen years since 1993 SBI appears only once at no. 10 level in 2002.
In the early years of economic and financial sector reforms, the list was dominated by foreign banks like BoA, Bank of Tokyo, ABN Amro, Amex, Citi, etc. No wonder. Over the years, India's private sector banks and public sector banks also found their place. By 2009, the top ten list had six PSBs, 2 new Private (Axis and HDFC Bank), 1 old private (Federal) and one foreign bank (Citi) were listed. Again in 2010, the list is headed by Axis Bank (new private). Some times economies of scale appear to be going against the public sector banks who are burdened with rural banking which is not cost-effective; and size is a hindrance.
New Private Sector Banks and foreign banks are not loaded with old legacies, non-performing assets, not so well qualified or trained staff and so on. SBI, hence is far above all these factors and a front runner. RBI looks to its support, experience, exposure and guidance in making many policies (IBI was its predecessor, after all). Under these conditions, if the bank had transforted into a modern bank of world standards, I compliment the author Mr R Chakrabarti and reviewer Mr Murali of Business Line for their factual story.
Wednesday, December 29, 2010
Unfortunately, in India we witnessed nearly fifteen scams of all types committed by a variety of individuals through out the year. The latest in the news are PF Scam, allegations of scam by ex-CJI and the last being Citi Bank employee in Gurgaon embezzling about Rs. 400 crores. Most shameful scandal was that of 2G resulting in a loss of Rs. 1,76,000 crores to the exchequer and that of Ashirvad Apartments affecting the Kargil War victims (by Defence Personnel). At this rate, Bankers, Administrators (IAS) or Bureaucrats, Businessmen, Sanyasis (Nityananda), Judges, Defence Personnel, MCI Chairperson, Politicians (BSY and his ministers), Micro Finance Institutions and promoters (Vikram Akula), IPL organiser Modi, are all involved directly or indirectly in these shameful incidents. All these are done at whose cost? AAM AADMI.
Coming back to the Organisational structure of SBI, it is the only bank in our country with a Chairman, 2 Managing Directors and over a dozen of Deputy Managing Directors at the top. All these are positions at least more superior to CMDs of different public / private banks. GOI seems to be considering adding two more Managing Directors in order to handle large size business of the bank. Of the lot of DyMDs, five of them are heading the Associate Banks in Bikaner & Jaipur, Hyderabad, Mysore, Patiala and Travancore (Saurashtra and Indore were already merged with SBI). The news is that even though there are two MDs in service, because they have less than two more years of service ahead of them, GOI shortlisted a few names of senior Dy MDs like Pratik Chaudhary, Hemant Contractor and others for the post of Chairman. The exact name would be finalised before March 2011 so that the giant bank continues to have its leader in place.
What an unfortunate development that a news item hit headlines in print and electronic media in this week that the bank was caught sleeping. An employee in their Gurgaon branch appeared to have single handedly handled the wealth management accounts of priority customers and indulged in a fraud to the tune of Rs. 400 crores. After all, all those employed in Foreign Banks are supposed to be smart and highly intelligent when compared to PSB staff. In the last two decades these PSB staff have been competing with Foreign Banks in order to render first class customer service at door steps.
Friday, December 24, 2010
Accidentally or unexpectedly I was asked to handle the course by our Director, although initially the course was designed / structured by another colleague who has subsequently quit TAPMI's services. Looking at the diverse backgrounds and level of exposure of the students, I went on re-designing the course structure by including the fundas of Doing Business in India (2010), the contents of which were sourced / down-loaded from the net. I spent about ten sessions familiarising the students on all related aspects of doing business.
The later sessions were even interesting, as I went on delving deep in to the European Union and the different business practices and regulations in the twenty seven countries / members of the Union. The students were also exposed to the various MNCs of Europe operating in India and the business environment in different parts of the EU viz., Central, North, Southern, Western and Eastern Europe. It was a rich learning experience for myself first besides making it an interesting learning process for the students through the experiential mode of presentations and assignments. Overall, I enjoyed delivering the course during which period, I went on downloading and collecting huge information on the related topics. Now I have comfort.
More interesting to me was an unexpected experience on the 23rd December when being on vacation I went to IIM-B to meet some friends. My ex-colleague is Manager of MDPs and one of the programs being offered by them is titled "Doing Business in (with) India" scheduled in the second week of January 2011. The participants appear to be from outside India, for a five day program costing about 5,500 USD (Rupee equivalent to 2,50,000) which is a hopping fee. I only wonder, if such a program is offered by TAPMI!
It is very interesting that after having allowed twice, RBI is acting choosy and careful in allowing new private banks on the Indian scene. Immediately after introducing economic and financial reforms in early nineties, RBI went on permitting new private banks while simultaneously reforming the public sector banks and old private banks besides of course inviting new foreign banks for a level playing field in India.
The industry witnessed founding of HDFC Bank, ICICI Bank, IDBI Bank, Times Bank, Global Trust Bank, UTI Bank, Bank of Punjab, Centurion Bank and Development Credit Bank (converted from a Coop Bank), in the first phase with a minimum capital requirement of Rs. 100 crores. However, very soon Times, BoP and Centurion got merged into HDFC Bank for some strategic reasons besides ICICI and IDBI went ahead with reverse mergers. GTB got force-merged with OCB (public sector) while in the second phase, YES Bank and Kotak Mahindra Bank were born with a capital requirement of Rs. 300 crores.
In as much as about two decades time, almost all the PSBs (including SBI group) got revamped and well capitalised to meet the global standard CAR of 8% and above in a phased manner. Foreign Banks of course, some how did not take the advantage of the RBI's invitation to expand, may be primarily due to the rigid monetary mechanism and compliances. And today, in its third phase, RBI is dilly-dallying its well announced policy of allowing more private banks. The objections raised by the PSBs not to allow too many private banks (conceding some NBFCs and MFIs) with a capital of Rs. 50 crores or promoted by Corporates which is against the basic philosophy of two nationalisations in 1969 and 1980 earlier.
Thursday, December 16, 2010
This is certainly a progressive and welcome development for the two Asian giants. India should emulate if not challenge the big brother in international trade, growth in GDP, setting up of more and more MNCs, inviting of FDI in its major industries and other sectors in the years to come.
Monday, December 13, 2010
Depicting Brother-sister relationship in HRHK (not used in those days, of course)!
One of my favourite songs / pictures - Hare Rama Hare Krishna of 1971
Saturday, December 4, 2010
Another clipping on EU from Youtube link. May be I got to study deeper and deeper to understand so as to teach the course "European Business Environment" to the students of Masters in European Studies and Management (MESM) offered by TAPMI-MCES of Manipal University since 2010.
And now, YES Bank CEO spoke about Boring Banking (Two-Three years back, it was Dr Rakesh Mohan, DG of RBI who coined a word Lazy Banking) in the sidelines of BANCON being organised in Mumbai by IBA and Central Bank of India. I am curious to read more about this new concept. May be Google would help me!
Monday, November 29, 2010
Yet another Amitabh's popular movie with powerful dialogues; in the lead role is SRK; interesting movie for all those who believe in Gurukul type of education in the modern day world : 2000!
Namak Haraam : Amitabh, Rajesh Khanna, Rekha, AK Hangal, Asrani, Raza Murad, et al in a multi-starter movie of 1973 on Friendship, Love, Trade Unionism, Business Management, etc with powerful dialogues of Rajesh and Amitabh as also some memorable songs like Mai Shaayar Badnaam, Nadiya se Dariya, Diye Jalthe hain, etc......Eternal movie which introduced Raza Murad. Also took Amitabh to greater heights while Rajesh was moving out (Hrishida's earlier hit AANAND brought name to Amitabh while Rajesh at his peak in 1970).
Saturday, November 27, 2010
While the steps taken are commendable, no need to advertise it. All public servants are expected to deliver their best and not encash the work done for personal propaganda. It is a colossal waste of public money collected through taxes paid by the income earning salaried class.
Wednesday, November 24, 2010
Hail Nitish. He is a techno-politician and proved many people wrong about Patna and Bihar politics. Yes, it is a wonderful shift from Goonda Raj to Vikas (Development) Raj. I am sure Biharis world over must be rejoicing and celebrating this development. No Lalu, no Rahul, no Paswan or no Maoists could stop BJP-JD (U) to come back to power with thumping numbers. Stability, Peace, Progress and Development should usher in the once-famous Nalanda land blessed with River Ganges. All Biharis would raise their heads with pride and work.
What a shame? At a time when India is moving forward in Cricket, Economy, and looking for a Seat in UNSC, back home, everyday a new Scam is surfacing. There are innumerable scams all around. Be it in business, telecom, housing, sports, banking, police or defence, Oh!
It is sickening for the new generation of the twenty-first century to know about all these scams by Judges, Ministers, Bankers, Soldiers, Politicians, Sportsmen and so on .... one after the other. The figures and facts are mind-boggling and frustrating for a sincere, honest, intelligent and dedicated citizen. Where is the end? Corruption and Fraud are spreading like virus or cancer in all fields.
May be the Government of India should think of instituting awards at national and state levels. I suggest that we may think of Scam Ratna, Scam-Bhushan, Scam-Vibhushan, Scam-Sri, etc for these achievers and hang them publicly. Some times, I wonder - do we deserve democracy? Whether our Constitution is so dumb? Why do our Parliamentarians and Legislators promise something, take oath on something else and then carry out their nefarious activities? God save India. Mera Bharath Mahaan. Jai Hind. Jai Ho. Vande Matharam.
God has been kind to the generation to have given such a long life to Bhagawan Sri Sri Sri Satya Sai Baba. He has not only been rendering service to his surroundings on religion and life, but also to the entire world in extending social service by providing transport (rail, road, airport, etc), education (University and Schools), health (Hospital), sports (stadium), water (project in Ananthapur dist) and general boost to the economy of Puttaparthi (Prasanthi Nilayam).
Visits by Politicians, Bureaucrats, Businessmen, Foreigners, etc will vouch the good work of Sri Sai Baba. Ratan Tata is certainly an exceptional personality with proven track record in his business career. His visit to Sai will vouch the genuine seva being done there. Long live Sri Satya Sai Baba. Om Sai Raam.
Monday, November 22, 2010
TAPMI's new campus is changing fast and getting ready to receive the President of India on Dec 09, 2010 for a formal inauguration. The 42-acre modern residential campus is getting the final touch ups besides the surrounding like approach road being widened. In the past one and half years, TAPMI and TAPMIans have witnessed several events, achievements, dignitaries and recognitions with top-speed.
India Infoline included in the B-Schools page all the recent developments at TAPMI. Many more things are in the offing to make the twenty-six years old Management Institute to scale new heights.
Unlike last year, the event was not affected by rains in the region. The two day events were well organised with adequate turnout respondents for the research work. Interestingly, the second day happened to be Sunday cum Children's Day which brought nearly five hundred participants accompanied by their parents to take part in the events. Four Journalists were also specially brought in by TAPMI - Mr Vinayak of BL-Mangalore, Mr Robin of BI-Goa, Mr Dennes of NIE-Chennai and Ms Deepal Gala of TOI-Hyderabad. In addition, local correspondents also actively covered the events in the news papers.
Mr Vinayak released his story in the Business Line under "The New Manager" quoting me and Prof Gururaj. Not Just a Fun Fair in Business Line of 22nd Nov 2010
Wednesday, November 3, 2010
Mr Sridharan is a special person; a technocrat turned professional who is contributing to the progressive India. An Engineer par excellence; honest, sincere and committed top executive; a role model to emulate. Can we call him Father of Metrolines or Transportation in India? Not enough, he should be considered for awarding next Bharat Ratna honour by Government of India.
Tuesday, November 2, 2010
Another useful clipping on Doing Business in Europe
Saturday, October 30, 2010
Today's Business Line reveals the high rates (as much as 65% pa) being charged by AP based MFIs and interestingly Economic Times article is in favour of high rates. We need to wait and see what the Sub-Committee constituted by RBI is going to recommend even when AP Govt has gone ahead issuing an Ordinance last week.
Friday, October 29, 2010
My current favourite topic and also hot in discussion on account of SKS Microfinance issues at board rooms, regulators, government after more than 20 borrowers committed suicides recently.
Thursday, October 28, 2010
Thursday, October 21, 2010
Friday, October 15, 2010
A very powerful 1975 movie "Aandhi" with two of the greatest stars - Sanjeev Kumar and Suchitra Sen depicting the political life resembling Mrs Indira Gandhi, the then Prime Minister with melodious songs.
A very powerful 1975 movie "Aandhi" with two of the greatest stars - Sanjeev Kumar and Suchitra Sen depicting the political life resembling Mrs Indira Gandhi, the then Prime Minister with melodious songs.
Very unfortunate. And, who should be held responsible for this development? Are we in the twenti-first century, modern, technology and civilised world / economy or moving backward? What are the Governments, Regulators (like SEBI, RBI or NABARD) or Police doing?
This move appears to be a timely step by the regulator. SKS happened to be the first MFI to go in for IPO and set a new trend in the capital market. SEBI has permitted the same and we are witness many developments. Unfortunate incidents that occurred were Dr Mohammad Yunus criticising Dr Vikram Akula over the money-making at the expense of poor. And then, the dismissal of CEO of SKS, Mr Gurmani last fortnight taking the Board Room war to the open discussions. These were not expected of in a service sector like MFIs.
The issue of high rates of interest has been a permanent issue for debate and now the regulator, RBI seems to have gone wiser. Earlier, GOI declined to intervene over this issue and left it to the concerned State Governments. And, there have been reports about Political Parties entering the dispute of high interest rates in Andhra Pradesh, where there is predominance of MFIs. We have got to wait and watch the developments.
Sunday, October 10, 2010
Dil Cheez Kya Hai, Aap Meri Jaan Leejiye
Today is Big B - Amitabh Bachchan's 68th Birth day. He has been my favourite actor for four decades! He went through many ups and downs in his cine-career. He attempted at Politics (as an MP) and Business (ABCL) but was unsuccessful. KBC gave him biggest turning point. And today, KBC4 is being launched again with Amitabhji. This month Super Star of South India, Rajani Kanth's top Tamil movie "Endhiran" (Robot in Hindi and Telugu) with Aishwarya Rai Bachchan has been released all over the World!
This month, the October 2010, is going to be a memorable one from so many angles. I have been designated as Dean (Planning & Development) at TAPMI from 1st of this month. I am shifting to a new 3-bed room apartment in the campus during this week. I got in touch with so many friends including Laxman from Singapore, Sridhar from Canada and after long years, S Thandava Krishna of SCB, Dubai (thro Linked in). Next week, I will be meeting Mr PK Reddy of Hyderabad again after a long break, in Bangalore on my 58th Birthday on the 19th Oct.
In the Campus too many events are taking place on an ongoing basis like some additions to Faculty, preparations for Dec 10 campus inauguration by President, two more B-School Rankings (Business India @ 28 and Week @ 15) and so on. And on 16th Oct., we have two events on campus - one is foundation laying of TAPMI School of Business (TSB) and the other is a Round Table discussions of the TAPMI's Centre for Inclusive Growth in which I also would take part alongwith Director, seniior bankers/professionals and academicians. The topic would be on Professional management of SMBUs and role of Academic / Banking Institutions....Management students would be the beneficiaries.
Two important family events have taken place on 9th Oct. One is naming ceremony of Preethi's son (second child) in Hyderabad. Papa's daughter Deepthi (Wipro, Hyd) got engaged on the same day in Vizag. Mom and Baba Mamayya attended from Hyderabad. We could not go to either of the functions. We are planning to attend the wedding on 19th Dec in Vizag.
Thanks to a balanced judgement in Ayodhya-Babri Masjid Case by the Supreme Court on the 30th Sept., the country is going peaceful. The Common Wealth Games are going on smoothly despite all sorts of apprehensions about corruption, poor quality construction of the facilities, delay in completion of the projects, etc. Indian participants are also on the move to set a new record as to number of medals this time. In Mohali, India had an exciting one-wicket win over Australian Cricket team, thanks to an excellent performance by our own VVS Laxman again. Second Test is going on in Bangalore now.
There is a serious political crisis going on in Andhra Pradesh even after Mr Rosaiah, the Chief Minister completing his one year of rule. It is for the Congress High Command to take a crucial decision on the State Leadership and Jagan. Gaddar gave a shock to KCR and his separate Telangana movement. Mr Yeddiyuruppa is going to face his acid test this week to survive in power and BJP in the South.
Oct 02 every year is celebrated as birth anniversay of two great sons of India - Mahatma Gandhi and Lal Bahadur Sastryji. And this month on 16/17th, Dasara is being celebrated all over the country. Yesterday the 10th October (10th month of 2010) is unique with 10-10-10 (DD MM YY), it seems. Then at 10 hrs - 10 Mts - 10 seconds, it is all the more special, happening after some 860 years or so. All for good, of course. Life is like that.
Saturday, October 9, 2010
Wow. Some time back I listed all types of banking in India, with the maximum number of alphabets like A,B,C, D.... and so on. Today, I came across one more - Home Banking - being offered by new generation banks. Also, I read about Preferred Banking! I will write more later..........................
Friday, October 8, 2010
Having worked and taught for nearly four decades in the banking and financial services industry, I feel very happy about this report. Once referred to as 'four letter' outfits indulging in all types of financial juggleries while the commercial banking system was undergoing reforms during the previous decade, NBFCs have come a long way in competition with their counterparts.
Unbelievable. That in a Communist country, students of journalism taking such radical and bold step of presenting a sexy 12 page calendar to their Prime Minister Putin on his birthday! We, in India, a democratic country with all modern life styles, of course with traditional values, still look at the news and pictures of Vijay Mallya's calendar girls for UB in secrecy. Yes, the twenty-first century is different!
And, my 58th Birthday is falling this month on 19th. What surprise gifts I can look for? and from whom? I sit with my fingers crossed. May be I will be in Bangalore on that day with friends and family members!!
I came across an ad of this new bank called Standard Bank in the web page of Financial Express today and got curious. Is it connected to the popular Standard & Chartered Bank in any way or it is an independent bank in South Africa. May be I need to spend some time and work on its website to get to know full details. Till then, let me upload in my blog the link to its website.
A proud moment for every Indian to know that the wealth is going to double in next five years. How reliable is this report? Does it mean that when the country's wealth doubles, each Individual Citizen also by and large benefits? Or is it confined to High Networth Individuals (HNIs) only. If so, what is the definition of HNI? Because, we come across several definitions of HNI from different organisations like Banks - Indian or Foreign. The fact that Credit Suiesse Research Institute carried out such a survey is laudable.
Thursday, October 7, 2010
In the near two decades of financial sector reforms in India, the major focus was on the banking system. While a major part of the ills in the system was attributed to the PSBs, the real issue was that of governance. Private sector banks simply followed the elder brothers and the system went on sustaining on false balance sheets. Several changes were made by the Govt as also the RBI to bring in a highly competitive level playing field among different types of banks. In the process, the PSBs were again the major beneficiaries.
During the late years of the previous decade/century, NBFCs played havoc while the banks were busy cleaning their balance sheets. Dereglation of interest rates and delicencing seem to have lead to mushrooming of NBFCs in India, when Govt / RBI appointed Vasudev Committee to set right the matters. Besides, Self Regulatory Organisations (SROs) like FDIC, AMFI, AMBI, etc have also put in their best efforts to remove the stigma on the NBFCs working. Today, a clear, transparent, efficient and highly competitive level playing field has emerged among all the participants of the Financial System. Interesting development is that RBI policy of inviting more foreign banks between 2005 and 2010 has not attracted many.
What started with Rs. 100 crores as capital required for a new bank to be set up in early years of reforms, was raised to Rs. 300 crores. Besides, the concept of Capital Adequacy Ratio (CAR) was introduced for all types of players on the international BIS standards. Now, CII proposing that minimum capital for new banks to be at Rs 1,000 crores is a welcome development.
Wednesday, October 6, 2010
I need to go back to my earlier works on Private Equity in 2005 and 2007 and update with this data to write another paper soon.
I attended the 2-day event on 13th and 14th August, 2010 - held for the first time by MBA Universe.Com, New Delhi. The program was well conceived and addressed by eminent Management Educationists from India and Abroad. The sessions were well designed and event well organised by the Team MBA Universe. Only one observation is that the delegates participating was skewed to North India and very few from South (like myself). I suggested to the organisers to look southwards for next event. The event concluded with announcement of India's Best B-School Rankings. This was also conducted by them for the first time under the able guidance of Dr Bakul Dholakia, former Director of IIM-A. TAPMI, Manipal was ranked at no. 21.
Tuesday, October 5, 2010
The Maha Ratna Bank ie., SBI is in news again. Currently, IDFC Bonds (with some tax concession upto investment of Rs. 20,000) are on tap for the middle class retail investors. Now that SBI is also in the fray besides raising its interest rates on FDRs, we have to wait and see what would be the response of the Invesors.
This news item is a frightening one to one and all. The increase in per centage of fake currency at 250 over the previous year, surpasses all the achievements India and its economy boast of. Strangely, this report speaks only in numbers and does not indicate the quantum of fake currency. This speaks of the inefficient administrative or vigilance mechanism in the country either in the government or banking system. Is there no remedy?
In the process, whether innocent middle and lower middle class income earners and saving community would be suffering. The Government has been failing in its promises and responsibility of containing inflation. Large scale corruption, lethargy, favouritism and inefficiency seems to be accumulating at the cost of honest, sincere and hardworking middle class. Any way, the business class, bureaucrats and politicians have unaccounted money with them.
Under this type of administration, how can AAM AADMI be assured of increase in quality of life for decades to come? God save India.
Islamic Banking cannot adopted in India for some obvious reasons. The legal system, social system, etc are not congenial to introduce Islamic Banking in our country. RBI made a thorough study a few years back and decided not to resort to this version of banking. The concept may be discussed, studied and researched but cannot be implemented. For academic purposes, some Conferences or Seminars may be held to educate those interested in knowing this mechanism. Some how, the religion aspect seems to be playing mental blocks for such a move. We have been witnessing, as a contrary, that Microfinance Institutions are charging usurious interest rates and RBI is yet to decide on this matter.
The youngest of the Development Financial Institutions (DFI), IIFCL has been progressing in a phased manner. During the Financial Sector Reforms period, the two leading DFIs, ICICI and IDBI were reverse-merged. IFCI, although being the first DFIs set up in 1948 (immediately after India's independence and before being declared Republic in 1950), but before India embarking its own Industrial Policy, has always been passing through difficult stages. Later, many DFIs were set up like EXIM Bank, NABARD, SIDBI, REC, PFC, etc., as also IL&FS and IDFC. Even then, there has always been deficiency of Institutions financing for Infrastructure Projects while Commercial Banks were meeting the requirements to some extent. IIFCL is now undertaking to bridge this gap in a planned way.
Monday, October 4, 2010
What a sad and unfortunate development, so soon after the first MFI in India having gone for equity from market. Only after this public issue, the GoI and RBI realised their role to regulate or oversee the working of and funds raising of equity by MFIs. Where is the Financial Inclusion from Commercial Banks? What are the NBFCs doing in this area? Have the RRBs/LABs and Cooperative Banks failed in discharging their responsibility of delivering credit at low rates of interest and on concessional terms to the rural borrowers? Are the farmers committing suicides only on account of high rates of lending by commercial banks or usurious rates by MFIs and Money Lenders?
Sunday, October 3, 2010
The Festival of Joy of Giving was observed last year (2009) with a modest response. This year it seems to have caught up with TAPMIans in a big way. Members of Social Endeavour Group (SEG) took up the cause of helping the inmates of Balaniketan, Udupi and taught them singing, dancing, etc during the week. The Prize Distribution Ceremony was held on October 02, 2010 in MIT auditorium. Good show.
After about three months full of controversies, blame-games, apprehensions, accidents and all that, CWG XIX of 2010 has taken birth on Sunday, the 3rd October. In the last fortnight, the Allahabad High Court (Sept 30) was also making everyone to keep their fingers crossed. And thank God, the suspense is over from Babri Masjid dispute.
Next, was the preparations and infrastructure (quality and completion). All the Indians are feeling relieved and enjoyed the first day - Inauguration by our President - Ms Pratibha Patil and the Prince Charles. And here in the clipping Mr AR Rahman performsn. Interestingly, even his song was also under debate for about a month! Oh, the media hype!!
Last month, I heard a speaker in a public meeting redefining JIT - it is no more the Just In Time but typical Indian efficiency of Jugaad In Time. He was confident that the CWG would certainly be held in a grand manner despite all the above hurdles and apprehensions if not breakdowns or accidents. Indians are capable and competent to showcase their Jugaad talent and demonstrate to the world. That is what exactly happened. All is well that ends well.
It is obvious that after India's no.1 bank, the SBI, a retail branch is opened by the no.2 - the ICICI Bank. For some reasons, ICICI has been hitting the headlines now and then, but this is a welcome development. Recently, a leading business magazine detailed the top-level shake ups in ICICI Bank after KV Kamath handed over the leadership to Ms Chanda Kochar. It is a real challenge to this woman executive to prove her mettle and the womanpower when empowered.
On our way, we stopped at the Canara Bank sponsored Artisan Training Centre in Mayura village near Karkala to visit and watch the wooden, stone, mud and metal art works done by the inmates. The participants are from all over India numbering about 70. All facilities like food and shelter are provided free to them free by the CE Kamath Trust. Worth visiting. The Masters of the craft need to complimented.
Reaching Niddle by about 12 noon, we occupied three rooms (shared) and proceeded to Dharmasthala. Thanks to Mr Nagesh Kamath and his contacts, we had a VIP darshan of Lord Manjunatheswara. We had our lunch (prasada) in the temple premises and returned to Resorts. Evening snacks were at Dosa Camp in Niddle. After resting for about two hours, we again moved to Sri Rama Kshetra and visited the temples in the evening. Back to resorts, we had played cards, Dumb Sharrads (with in between singing and dancing too) and a late night dinner before resting at about 11 pm.
Next day morning, we freshened up and had break-fast at Dosa Camp again. Then, we vacated the rooms in Resorts and proceeded to Mangalore. Having reached by 12 noon, we went round the City Centre, a newly opened Shopping Mall. All of us made some purchases and then proceeded to Ocean Pearl to have a cost lunch. Then followed an Ice-Cream session at Natural and returned to Manipal to be at home by 6 pm.
Friday, October 1, 2010
Thursday, September 30, 2010
In 1978, I read an internationally popular book titled "Roots" by Alex Hailey. It delves deep into the black population of USA and their origins. According to the author, who himself a black, he probed for twelve generations to know the history. These were the people from African jungles, caught and taken to USA as slaves. The book is very interesting to know the transformation of this tribe for centuries. And what we witness today in USA is that the White House is occupied by an Afro-American - Mr. Barack Obama as its President.
At least our generation of Karanams (also called Telugu/Rao Patnaiks) belong to cross border areas of Andhra-Orissa-West Bengal. My home town is Kotabommali in Srikakulam Dist, the last / northern most adjoining Orissa State. I have this fact recorded in all my certificates, passport, etc. My birth place again is Salur in the same district. My mother grew up in Kharagpur, in West Bengal State. When my father joined the State Government (then Madras Province), he worked in Madras (now Chennai) in early fifties. Later, when the new AP state was formed in 1956, he came to Kurnool-Hyderabad to work for long years in the Medical & Health Department. I remember well that he was Secretary of the AP Sistakaranam Association in Hyderabad for long years.
I grew up in Hyderabad, since 1959 when I joined 4th standard (at the age of 7 years) in Govt High School, Malakpet. I also joined my first job in Andhra Bank, Central Office, Hyderabad in April 1971 (at eighteen and half years) and later moved all over in the State, Mumbai, Bangalore, Manipal and so on. The present generation of our community are not fully aware of our roots. They also do not seem to be interested with the kind of exposure to modern world, technology, society, life, etc. Wikipedia page (above) gives a glimpse of Karanams.
MFIs are proliferating. The recent developments in India only indicate that while on one side there is focus on Financial Inclusion and the banking system has been endeavouring to bridge the gap, on the other side, these MFIs are spreading fast and wide. It is appreciable that we need to have a level playing field in the industry, but not at the cost of charging usurious interest rates ranging any where between 24 to 36 per cent on the loans to rural poor and women. It is time that GOI and RBI speed up the enactment of the proposed law to regulate the MFIs.
Tuesday, September 28, 2010
Interesting! Forbes India in its October 0, 2010 covers the topic "Greed is Back" - the spirit of Gordon Gekko refuses to be exorcised from Wall Street or Hollywood. It is all about Gordon Gekko, the icon of greed, who returns to screens after 23 years. Perfect timing, as Wall Street shrugs off lessons from the crisis and goes back to its old ways. The three page article also covers eight Faces of Greed - Michael Milken, Jeffery Skilling, Ivan Boesky, Bernard Ebbers, John Meriwether, Nick Leeson, Bernard Madoff and our own Indian - Harshad Mehta.
Much more interesting is the next article in the issue titled "How Greed Works" by Vikram Sheel Kumar. Worth reading to avoid GREED.
Monday, September 27, 2010
In the last five years or so, Mobile Technology is spreading very fast and penetrating into rural India too. At a time when the GOI and RBI are focussing on taking the banking to grass roots level under Financial Inclusion, it is apt to choose this medium. I may call it Two Birds in One Shot.
Good source of information on Social Entrepreneurship in India.
The new word coined here is interesting "Sociopreneurship". I am keen on attending. It should help in my research work too.
Interesting. That the Secretary of Financial Services issued a statement about Financial Inclusion, Inclusive Growth and related issues today while this position was being paid attention and focussed by RBI and the banking system for at least last five-six years. Technology has no doubt been of greatest use to leverage the rural banking in this century. Is it not the responsibility or failure of the GOI that even after sixty three years of independence and eleven five year plans (with two major bank nationalisations), the country has only 40% of the population with bank accounts. It is time that RBI realises the real problem and offer remedies to retrieve from the position.
Sunday, September 26, 2010
Richard Branson is Chairman of the Virgin Group. He was born in 1950 and educated at Stowe School, where he set up Student magazine when he was sixteen years old. In 1970 he founded Virgin asa mail order record retailer, and shortly afterwards opened a record shop on London's Oxfort Street. Two years later, the company built a recording studio Virgin Records went on to become the largest independent record company in the world.
Since then theVirgin Group has expanded to encompass around three hundred companies in over thirty countries. Richard is the only person in the world to have built eight billion-dollar companies from scratch in eight different sectors. Through the Virgin Group's charitable arm, Unite, he is working to develop new approaches to social and environmental problems.
Richard's autobiography, Losing My Virginity, and his books on business, Screw it, Let's Do it and Business Stripped Bare, are all international bestsellers. He lives on Necker Island in the British Virgin Islands and is married with two grown-up children. (extract from his book Losing My Virginity - Cover Page)
Thursday, September 23, 2010
RBI releasing the latest report 'A Profile of Banks 2009-10' is commendable. We get the core information of each bank, and under classification as Foreign Banks, Public, Private and SBI categories is helpful for researchers as also individual bank's policy makers to know the industry information, and market shares to face competition.
Wednesday, September 22, 2010
I gave a search for Microfinance in India on the website of RBI and the above page popped up. Although, it may give some idea, I am not too sure whether an integrated picture (latest) could be arrived at by going through all the links. There are thousands of MFIs operating today and they are yet to be regulated by RBI or NABARD. In the mean time MFIs are making merry with high interest rates charged for the loans from the rural, uneducated poor women customers.
It is not mere credit or finance that is happening or needed by the people in the rural areas of our country. They also have a high expectation from the State. They should also be availing of the benefits accruing to their counter-part elite bank customers like Technology, Credit Rating, MFI Indexing, Securitisation, etc., that is taking place of late for MFIs. Millennium Development Goals of UN also have promised to deliver something concrete towards welfare economy including social and financial aspects.
One of the agencies working globally on MFIs is CGAP - Consultative Group to Assist the Poor. Not only in India, that MF is needed and happening in a big way or Bangladesh. Almost all countries have realised by the year 2000, that MF is an important tool to contain poverty and extend loans to all those who are eligible.
This organisation is very special. ICRIER stands for Indian Council for Research on International Economic Relations, located in New Delhi and headed by Dr (Mrs) Isher Judge Ahluwalia. She visited our TAPMI Campus on November 03, 2010 alongwith her husband, Dr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission. She delivered Key Note Address at our Seminar on Banking.
ICRIER has a battery of Economists on its rolls for conducting research. Their website is www.icrier.org. They have associations with many other research organisations in the country and abroad given in a web page as Related Links. The reports of this organisation are highly authentic, informative and useful for any researcher.
Tuesday, September 21, 2010
Rajesh - Amitabh - Rekha - Asrani - AK Hangal - Om Shivpuri - Raza Murad (introduction) movie.
When I took the responsibility of Chairman-Branding, Promotion, etc Committee of Faculty Members, I did not know where to begin. By then, in May 2009 the rankings were announced by Business World Magazine and TAPMI did not participate; for reasons best known to any one. It pained me, particularly after having spent nearly three years in a different B-School in Bangalore and watching about accreditations and rankings!
Of course, to jump in to the fray, we need manpower, time, patience and most importantly, complete information about the Institute's manpower, finances, infrastructure, faculty/ staff / students' achievements, admissions and placements data, research outputs, visitors' on the campus, oh....... where is it available!!
With the support of some administrative staff (most of them are familiar to me) and faculty colleagues, we did submit almost all the following surveys. Most of the times, some or other data used to be either missing or incomplete. In order to catch up with the deadlines, against all constraints and hurdles also of course, the teachings/administrative responsibilities. The results, were mixed and thus putting further pressure on us. The only satisfaction was that we could retrieve from the derailment for about previous three - four years.
Come 2010, we got some realisation, but the constraints of manpower and MIS continued despite best of efforts. Some are not so keen on rankings while some have wild reservations; but the market does value these rankings, particularly the Admissions-seekers as also the Recruiters. We can not go on brushing aside about regulators and ranking agencies. These have a heavy bearings on our visibility and marketability.
Interestingly, as if the existing agencies or magazines are not enough, some more have entered the race. As it is nobody knows as to how many types and numbers of B-Schools we have in India (reputed or registered). In the last nine months from January 2010, I have come across nearly 25 agencies seeking information from us for B-School Rankings Surveys but only one agency (Career 360) visited our campus and took physically verified data. To list all these agencies : (1) The Human Factor (2) The Sunday Indian (3) Careers-360 (4) http://www.pagalguy.com/ (5) http://www.eduniversal.com/; (6) Business World also for B-School Directory (7) Business Today (8) Competition Success Review (9) Dun & Bradstreet (10) http://www.mbauniverse.com/; (11) Business India (12) The Week (13) All India Management Association's Indian Management also for B-Schools Directory (14) Outlook India (15) CNBC TV 18 (16) Dalal Street Investment Journal for B-School Directory (17) DNA Daily News & Analysis (18) Dainik Bhaskar Lakshya (19) AIMS International for Awards (20) Dewang Mehta Business Schools Annual Awards (21) The New Indian Express for South India's Best B-Schools (22) Silicon India B-School Survey (23) http://www.mbapursuit.com/; (24) Zee Business B-School Rankings.
Of course, each one of these magazines have some or other research associates and methodology. Most of them send a questionnaire to be filled up and submit alongwith documentary evidence including brochures, placement letters, invitation cards for events, etc. A few follow the perception methods of study. Their weightages also differ. The sensitive issue here is these agencies / magazines seeking rather pressurising for release of advertisements in these special issues. One view is that while inserting advertisements both the parties are favouring each other; but it should not be influencing the ranking process. That is the biggest dilemma.
Rating Agencies have appeared on the Indian scene in 1988 beginning with CRISIL. Then came ICRA, CARE, FITCH (formerly Duff & Phelps). Of course, now we have some more like SMERA, CIBIL, and Bric, besides of course foreign players like Standard & Poor, Dun & Bradstreet, Moody's, etc. There are consulting firms like Ernst & Young, PriceWaterhouseCoopers, etc. Each of these players can be carrying on their business in their own ways. The market and investors can not be taken for granted and thanks to reforms, SEBI now regulates all these Credit Rating Agencies. It appears similar regulatory mechanism is essential to oversee and monitor the above B-School Ranking Surveys. Else, the gullible student and sincere recruiter can be taken for a ride in the Wonderland of Indian Rankers of B-Schools.
Saturday, September 18, 2010
Blue Ocean Strategy world-wide
Today (18th September 2010), it was an entirely a new and different activity at TAPMI. India Blue Ocean Strategy Research Centre TAPMI was launched at 10 am in White House Hall of The Hotel Capitol, Bangalore by none other than the noted film maker from India, Mr Shekhar Kapur. He is a Chartered Accountant by training but after a brief period of practice as an accountant and Management consultant in UK for some years, he entered the field as a Model, Actor and Director. He directed prize winning popular films like Elizabeth, Masoom, Mr India, Joshilay and currently working on Paani. It was a very appropriate selection that he would launch the new centre.
The other prominent personalities at the inaugural session were Dr KRS Murthy (former director of IIM-B), currently Chairman of ISEC, Bangalore and himself a long term Professor of strategy. Mr Anand Sudarsan,. MD of Manipal Education, Bangalore was the Key Note Speaker. Dr Robert Bong and Dr Saji Gopinath, Director of TAPMI also addressed the gathering. Dr Bong dealt with the automobile industry in India for a few decades ending with introduction of Nano Car by Tatas as a recent example in India. In the following Technical Sessions during the day, Mr Peter Tan, Mr S Siva Kumar (e-Choupal fame of ITC), Mr Dileep Ranjekar of Azim Premji Foundation shared their own experiences with the strategy in India. It was a memorable event for all the TAPMIans.
It is learnt that Mr Vineet Nayar of HCL also propogated the Blue Ocean Strategy in his company and authored a book titled Employees First. More such instances can be had from the link given above.
Wednesday, September 15, 2010
It is better that Chiranjeevi seriously considers his cine-career as he is re-entering films. On the screen, you can fool the gullible viewers with all sorts of dialogues, actions, dashing scenes, and miracles. It is after all entertainment where all of us get into believe the illusions.
AP is facing the worst times or crises, when the twenty-first century world is moving fast. It has half-a-dozen post-power aspiring politicians - Naidu of TDP, KCR of TRS, Jagan of Congress, Chiru of PRP, and so on. Democracy does not mean that every one aiming for a Gaddi should disrupt public life every now and then.
Jagan is living in the dream-world to capture power (as a legal heir to his father Dr YSR, who had to wait three decades or so to become a CM). Over-ambitious Chiranjeevi after earning huge money and name in cinemas, now suddenly takes to streets. Should the Janata believe these tricksters? KCR took to the four decade old (buried) Telangana issue for his personal reasons. How much of waste of time, money, energy, resources, and chaos and confusion among the youth? God save AP.
My Paa the Best. I have been an ardent fan of Amitabh Bachchan for past four decades. Now, at 68 he is still going strong and steady. Congratulations, Amit ji, Jaya, Abhishek and Aishwarya.
Oh! As I said earlier, this site IBEF is so much up to date and informative. Today's citizen, student, researcher, policy maker and every one for that matter is going net-savvy. In a vast democratic country like ours, there have been many developmental changes have been taking place. But the media primarily focusses on spicy, flashy, sensational news to capture the attention of the viewer/reader.
Here I see a nice table, IBEF provides information on IT Parks, Green Power, Taxation, Cotton Exports policies of the Government. Very interesting and encouraging too. I recommend that we should be viewing this site on a regular basis to get such good news about India.
At a time when RBI and GOI is scratching their heads as to the role and regulation of MFIs as NBFCs in the country, there have been newer developments. Only a month back the largest MFI from Andhra Pradesh, SKS Finance (Swayam Krishi Sangham) floated by an US-returned Dr Vikram Akula went public with a huge Rs. 1,600 crore IPO. It may take some time for these developments to settle down as part of our Indian Financial System.
The news that Sa-Dhan would be opening more branches with regional chapters in different States of India is interesting. Let us watch and wait.
Unstoppable Indians. Wonderful collection or compilation by NDTV uploaded in the www.ibef.org site. These clippings are not available any where else separately. Each story is exciting and interesting that these unheard heroes and heroines are contributing for improving the quality of life of their fellow Indians. Worth a collection indeed. Cick on each of these ten stories and listen carefully about the contribution of these special groups of people.
The list is 1. The Umang Movement 2. linguistics @ small price 3. The barefoot College in Tilonia, Ajmer 4. Rise of Dalit Businessmen 5. The Gulabi Gang 6. Inspiring Micro Enterpreneurs 7. The 'Khabar Lahariya' story 8. The farmers' story 9. The people's budget initiative 10. Destination : Ability Unlimited. Very fulfilling if you go on listening each of these stories. Mera Bhaarat Mahaan. Jai Ho. Maa Tuzhe Salaam.
When I was very young, at 19 years of age, fresh from college to join banking service, the movie of Devanand and Zeenath Aman titled "Hare Rama Hare Krishna" was released and was grand hit. We even today relish those scenes and songs. It was hardly a decade that Goa was witnessing Hippie culture and simultaneously Hare Krishna cult was also spreading in India thanks to Sri Prabhupada.
Tuesday, September 14, 2010
Dear Shri Shekaran,Your article in BL on IPOs compared to Circus is very interesting.Best wishes,Prof Chowdari PrasadTAPMI, Manipal-576104Off: 91-820-2701045Mob:09242124642New:09482549472
Indian Financial System (including Banks and Non-Banks) is considered to be robust; may be due to its conservative approach. But some times some public / private banks or NBFCs (later, it bacame the most hot four letter word) have been aggressive and tasted success or vanished from the scene. At least in the post reforms era, while the Public Sector Banks were streamlining themselves to conform to the RBI guidelines on Prudential Norms, etc., an excellent opportunity was grabbed by NBFCs to mushroo and squeeze the economy. Very soon, of course the saturation point emerged with CR Bhansali's scam surfacing. RBI and Govt got alerted and asked Vasudev and Committee to examine the NBFCs industry to caution the investing public. The euphora came down and the industry checked as also the banking system almost stabilised.
And now, we are witnessing the mushrooming of MFIs. One of them has already gone public and the response was amazing. RBI is opening discussion as to how to keep a watch on their activities and collaborate with the GOI and SEBI to check MFIs. A bill dealing with all aspects of MFIs in India is pending with the Babus and Parliamentarians. We wish they act fast before another major problem erups in the finance world.
This is certainly not Innovative or Doorstep Banking! Very unfortunate that even educated people living in metro cities get duped and become victims to such pseudo-bankers! I wish, I had such a magic pen.
India Brand Equity Foundation (www.ibef.org) has been one of my favourite sites, which I visit almost every day. It is a highly professional and informative site with all about the developmental news on India. CII and Government of India are collaborating to showcase India as a Brand that we all Indians should be proud of. The site disseminates several reports and clippings that are handy and authentic.
And a news like that India would be achieving 9.5 per cent growth rate in coming three to five years is exciting too.
Monday, September 13, 2010
The other noted Indian personalities in this list include Ratan Tata at no. 12, Ram Charan at 13, S. Kris Gopalakrishnan at 15, Vijay Govindarajan at 24, and Rakesh Khurana at 44. We all Indians, Management Teachers and Graduate Students and Corporate World should be happy that these six Indians have made the country great.
AP witnessed separate State agitations in 1969-70 both in Telangana and Seema Andhra areas affecting the economy, education, law and order and other aspects. Somehow, Centre could purchase peace by offering several projects to Hyderabad/Telangana as also political favours to the leaders who became Ministers, Chief Ministers, Central Ministers or Governors or Heads of several Corporations. The list includes both from Andhra (includes Rayalaseema) and Telangana. And now, after nearly forty years, democracy seems to have given scope for several proliferation of self-styled leaders from all backgrounds (including Cinema) championing the cause(s) of people. I see every move of every one in this set up as power hungry but not working for the society or people.
Odaarpu Yatra can not go on for years. It need not be with all fan fare of spending huge public money installing statues and celebrations and speeches. All this appears like show of strength. Why this type of Yatras were not taken up when thousands of farmers committed suicides when monsoon or crops failed? Why such yatras were not undertaken when cyclones or floods affected the assets, lives and economy? AP seems to be passing through power crisis. There have been enough Ministers at State or Centre and Chief Ministers from all the three regions. Starting from B Ramakrishna Rao (T), PV Narasimha Rao (T), T.Anjaiah (T), Marri Chenna Reddy (T), Jalagam Vengal Rao (T) - 5 from Telangana; Sanjeevaiah (R), Neelam Sanjiva Reddy (R), N Janardhana Reddy (R), N Chandra Babu Naidu (R) and YS Rajasekhara Reddy (R) - 5 from Rayalaseema; and Kasu Brahmananda Reddy (A), Bhuvanam Venkatram (A), Nadendla Bhaskara Rao (A), NT Rama Rao (A) 4 from Andhra to recall the CMs.
And then, there have been MLAs, MLCs, MPs (in Lok Sabha and Rajya Sabha as also Ministers) and Governors from all these regions ending with PV as Prime Minister and Sanjiva Reddy as President. All these people had adequate opportunity to serve the people and do justice thus rendering first class service to people towards development.In May, Jagan Mohan Reddy set off for the second leg of his Odarpu Yatra. In troubled Telangana. But pro-Telangana state protesters were in no mood to let the Congress MP's yatra continue in view of his united Andhra Pradesh stance. AP witnessed separate State agitations in 1969-70 both in Telangana and Seema Andhra areas affecting the economy, education, law and order and other aspects. Somehow, Centre could purchase peace by offering several projects to Hyderabad/Telangana as also political favours to the leaders who became Ministers, Chief Ministers, Central Ministers or Governors or Heads of several Corporations. The list includes both from Andhra (includes Rayalaseema) and Telangana. And now, after nearly forty years, democracy seems to have given scope for several proliferation of self-styled leaders from all backgrounds (including Cinema) championing the cause(s) of people. I see every move of every one in this set up as power hungry but not working for the society or people. Odaarpu Yatra can not go on for years. It need not be with all fan fare of spending huge public money installing statues and celebrations and speeches. All this appears like show of strength. Why this type of Yatras were not taken up when thousands of farmers committed suicides when monsoon or crops failed? Why such yatras were not undertaken when cyclones or floods affected the assets, lives and economy?
It looks more of politics and power (with corruption) is the priority instead of development. Be it in AP or any other state. The Common Man is always the sufferer / victim.
There was a few days gap in my writing the blogs; because of holidays coupled with travelling as also some network problems at home. Besides, I was also engaged in teaching European Business Environment course at MCES, Manipal last week and today I had a half-day's lecture sessions at SIBM, Manipal on High Value Credit Proposals to 31 of the their Senior Credit Managers.
Referring to my stint in SBI at Central Office, Mumbai, I was discussing with the participants reg Harshad Mehta's Stock Market Scam and how it surfaced at SBI's Mumbai Main Branch. Also, came up for discussion was the manner in which a junior Official of the bank handled the securities sales / purchases and meddled with the ledger accounts, etc. Besides, the fact that the SBI share was zooming day by day from a mere Rs. 450 (Rs. 100 was the face value and had a premium of Rs. 160 those days and rarely traded or quoted) to nearly Rs. 19,000 in a matter of about six months between November 1991 and April 1992, when the scam hit the markets.
Well, life is like that.... with series of Brand related meetings and preparations for two other events (or three?) on 14th and 18th Sept., 2010. (More on it separately)
SBI is in news again for another development. Its share is quoting in the Stock Market at the highest in recent times, with the BSE Index too hitting the highest at over 19,000 since January 2008 downfall. My comments would follow in a day or two.