...Y V Reddy: Fiscal policy and economic reforms Address by Dr Y V Reddy, Governor of the Reserve Bank of India, at the National Institute of Public Finance and Policy (NIPFP), New Delhi, 26 May 2008 (edited transcript). * * * Respected Professor Govinda Rao and distinguished scholars, I am honoured by my friend, Prof. Govinda Rao’s, kind invitation to me to visit the National Institute of Public Finance and Policy (NIPFP). I had the opportunity of working very closely with the NIPFP on several occasions. Apart from my personal affinity to the NIPFP, there is a close relationship between the Reserve Bank of India (RBI) and the NIPFP, from an institutional point of view also. For instance, Prof. Govinda Rao is a Member of the Southern Local Board of RBI. Initially, I thought of speaking on fiscal policy and economic reforms from a central banker’s perspective. I realised later that while I have been working as a central banker over the last one decade, I had worked for most parts of the three decades prior to that in the Ministry of Finance, in the Government of India as well as in the Government of Andhra Pradesh. So it was a difficult choice for me as to whether I should give a fiscal view of the monetary policy or a monetary view of the fiscal policy. I have worked for a short period in the World Bank, which gives a global governments’ view and also in the IMF, which gives a global monetary authority’s view. As a via-media, I have opted to give a practitioner’s perspective...
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...Inflation in India: Docile or Defiant? Executive Summary ASSOCHAM study finds that inflation was structural in nature rather than being episodic. Farm prices are less responsive to the RBI’s monetary policy whereas manufactured goods prices were found to be more responsive to the policy. Manufactured goods prices are showing new dynamics: a) Highest price rise in primary and upstream products b) A moderate rise in intermediate goods prices c) Least hikes in prices of finished and consumer products In the light of these features and trends in inflation, ASSOCHAM suggests four pronged anti-inflationary package. These includes Structural Correction for Structural Inflation: This calls for a comprehensive action plan for the farm sector, involving among other measures, a programme for a “Horticultural revolution” for increasing productivity of fruits and vegetables, fish and poultry. Controlling form inflation is a joint responsibility of the union Government and RBI. Only monetary policy adjustment will not correct such trend price rises. 2 Hence, RBI need not raise policy rates every time form prices are rising, as analysis shows farm price are not responding to monetary policy changes. Manufactured good inflation is showing for greater responsiveness to monetary policy changes. RBI should concentrate more on controlling these prices Going into the disaggregated and Sectoral price behavior of manufacturing goods, we find the dynamics of change is more in upstream...
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...ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ RBI Central Office Building, Mumbai RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ 2 Contents Overview: Who We Are � Celebrating Our Platinum Jubilee � The Reserve Bank: Tradition and Change � Celebrating 75 years: Highlights Organisation and Structure: How We Operate � Management and Structure Main Activities: What We Do � Monetary Authority � Issuer of Currency � Banker and Debt Manager to Government � Banker to Banks � Regulator of the Banking System � Manager of Foreign Exchange � Regulator and Supervisor of the Payment and Settlement Systems � Developmental Role Research, Data and Knowledge Sharing: How We Communicate � Communicating with the Public � RBI Publications Addressing Current and Future Challenges Customer Service: How Can We Help You? 3 4 5 6 8 9 11 12 15 18 20 22 24 26 28 31 32 33 34 36 Overview: Who We Are The Reserve Bank of India (RBI) is the nation’s central bank Since 1935, when we began operations, we have stood at the centre of India’s financial system, with a fundamental commitment to maintaining the nation’s monetary and financial stability. 3 From ensuring stability of interest and exchange rates to providing liquidity and an adequate supply of currency and credit for the real sector; from ensuring bank penetration and safety of depositors’ funds to promoting and developing financial institutions and markets, the Reserve Bank plays a crucial role in the economy. Our decisions touch...
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...Global economic slowdown and its impact on the financial services industry in India April 2009 The global slowdown was an outcome of two events - absence of a sound regulatory framework & mismatch between financial innovation and the ability of the regulators to monitor them immediate aim should be to fix the financial system and to maintain the aggregate demand at a high enough level to stimulate the real sector 2 Contents Executive summary 1. Global financial markets: A perspective 2. Indian financial services industry 3. Impact of the recession on the financial sector of the Indian economy 4. Future outlook 5. Conclusion Contacts 4 6 9 14 18 20 23 3 Executive summary The global economy is reeling with the impact of the ongoing recession which started with the sub-prime crisis in the United States and found its way to other developed and emerging economies of the world. This recession has its roots in the initial collapse of the financial sector. However, in a world that is more integrated within each country as well as across nations, the events in the financial sector have eventually trickled down to the real sector of the economies as well. Finance and financial markets play a dominant role in growth and development of modern economies – hence, any recovery from the current recession must be couched in an overall recovery of the health and performance of the financial sector. In the absence of mature financial markets in their own economies,...
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...Global economic slowdown and its impact on the financial services industry in India April 2009 The global slowdown was an outcome of two events - absence of a sound regulatory framework & mismatch between financial innovation and the ability of the regulators to monitor them immediate aim should be to fix the financial system and to maintain the aggregate demand at a high enough level to stimulate the real sector 2 Contents Executive summary 1. Global financial markets: A perspective 2. Indian financial services industry 3. Impact of the recession on the financial sector of the Indian economy 4. Future outlook 5. Conclusion Contacts 4 6 9 14 18 20 23 3 Executive summary The global economy is reeling with the impact of the ongoing recession which started with the sub-prime crisis in the United States and found its way to other developed and emerging economies of the world. This recession has its roots in the initial collapse of the financial sector. However, in a world that is more integrated within each country as well as across nations, the events in the financial sector have eventually trickled down to the real sector of the economies as well. Finance and financial markets play a dominant role in growth and development of modern economies – hence, any recovery from the current recession must be couched in an overall recovery of the health and performance of the financial sector. In the absence of mature financial markets in their own economies,...
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...COMPANY ANALYSIS INTRODUCTION The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank. Mission statement: HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. PRODUCT VERTICALS HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: 1. Wholesale Banking Services ...
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...bank, began operations on April 01, 1935. It was established with the objective of ensuring monetary stability and operating the currency and credit system of the country to its advantage. Its functions comprise monetary management, foreign exchange and reserves management, government debt management, financial regulation and supervision, apart from currency management and acting as banker to the banks and to the Government. In addition, from the beginning, the Reserve Bank has played an active developmental role, particularly for the agriculture and rural sectors. Over the years, these functions have evolved in tandem with national and global developments This book aims to demystify the central bank by providing a simple account of the Reserve Bank’s operations and the multidisciplinary nature of its functions. The Bank today focuses, among other things, on maintaining price and financial stability; ensuring credit flow to productive sectors of the economy; managing supply of good currency notes within the country; and supervising and taking a lead in development of financial markets and institutions. The book serves to highlight how the Reserve Bank’s decisions touch the daily lives of all Indians and help chart the country’s economic and financial course. We hope that readers would find the book , authored by the staff of the Bank, useful in getting a better appreciation of the policies and concerns of the Reserve Bank. Dr. J. Sadakkadulla Principal Reserve Bank Staff College...
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...PREFACE As a part of the course curriculum, the first year M.B.A. students are required to prepare a financial project report. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application. The preparation of this project report is based on financial analysis of annual reports of 5 consecutive years for a public limited company using Ratio Analysis, Common Size Statements and other financial tools. The scope of the project report is limited to the study of the financial position of the company on the basis of the published data available. Our work in this project is, therefore, a humble attempt toward this end. In spite of our best efforts there may be errors of omissions and commissions, which may please be excused. Acknowledgement There is always a sense of gratitude, which one express to others for the helpful and needy services they render during all phase of life. I too would like to express my gratitude towards all those who have been helpful in getting this mighty task of project report writing. I would like to express my sincere thanks to my faculty guide Prof. Nikunj Patel and Prof. Ritesh Patel for providing inspiration and encouragement. We are also very thankful to the other teaching & non-teaching staff of the institute for extended their help; co-operation and support which have greatly ease our work and made our report unproblematic. At Last but not least we...
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...State of the Economy and Prospects CHAPTER 1 While India's recent slowdown is partly rooted in external causes, domestic causes are also important. The strong post-financial-crisis stimulus led to stronger growth in 2009-10 and 2010-11. However, the boost to consumption, coupled with supplyside constraints, led to higher inflation. Monetary policy was tightened, even as external headwinds to growth increased. The consequent slowdown, especially in 2012-13, has been across the board, with no sector of the economy unaffected. Falling savings without a commensurate fall in aggregate investment have led to a widening current account deficit (CAD). Wholesale price index (WPI) inflation has been coming down in recent months. However, food inflation, after a brief slowdown, continues to be higher than overall inflation. Given the higher weightage to food in consumer price indices (CPI), CPI inflation has remained close to double digits. Another consequence of the slowdown has been lower-than-targeted tax and non-tax revenues. With the subsidies bill, particularly that of petroleum products, increasing, the danger that fiscal targets would be breached substantially became very real in the current year. The situation warranted urgent steps to reduce government spending so as to contain inflation. Also required were steps to facilitate corporate and infrastructure investment so as to ease supply. Several measures announced in recent months are aimed at restoring the fiscal health...
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...Organizational Analysis Report Raghavendra Satwik - PGPEX 32/9 Rohan Gupta - PGPEX 35/9 Upendra Pisupati - PGPEX 50/9 Table of Contents Objective ....................................................................................................................................................... 3 Company Background ................................................................................................................................... 3 History ....................................................................................................................................................... 3 Operations ................................................................................................................................................ 4 Technology ................................................................................................................................................ 4 Management Team ................................................................................................................................... 5 Products & Services .................................................................................................................................. 6 External Environment ................................................................................................................................... 7 Organizational Culture .........................................................................
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...Table of Contents EXECUTIVE SUMMARY ..................................................................... 3 CHAPTER-1 INTRODUCTION ................................................................ 4 1.1 Types Of NBFC‘s ...................................................................................... 5 1.2 Regulations of NBFC‘s ............................................................................... 6 1.3 Guidelines for new deposits ........................................................................ 8 1.4 Responsibilities .......................................................................................... 11 1.5 Current Scenario ....................................................................................... 12 CHAPTER-2 Literature review ....................................................................................... 14 2.1 Importance Of NBFC‘s .............................................................................. 15 2.2 Role of NBFC‘s ... ................................................................................. 16 2.3 On Global Crisis .................... .............................................................. 17 CHAPTER-3 RESEARCH METHODOLOGY ............................................................. 18 3.1 RESEARCH DESIGN ...............................
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...regularly from the customer. If asset fails to be in this category i.e. amount due more than 90 days then it is NPA and NPAs are further need to be classified in sub categories. i) Sub-standard: the account holder comes in this category when they don’t pay three instalments continuously after 90 days and up to 1 year; ii) doubtful NPA; iii) Loss Assets: under this 100% provision is made. When account holder comes in this category their account can be written off by the banks. Types of NPA: * Gross NPA: reflects the quality of the loan made by the banks. * Net NPA: reflects the actual burden of the banks. The main reason behind NPA would be lack of proper enquiry by the bank, wilful defaulter, change in government policies etc. which could affect the bank by restriction on flow of cash by the bank for sanctioning a loan, drain of profit, bad affects on goodwill, etc. There are different acts and institution for the NPA recovery like SARFAESI ACT, 2002; SARC; ARC; DRT; Lokadalats; etc. Current status of NPA in Indian banking system: analysis of the RBI NPA data demonstrates interesting recovery trends by Legal Channels. The NPA involved has increased for all three channels: Lok Adalats, DRTs (Debt Recovery Tribunals), SARFAESI Act. However, the highest year-on-year increase has been with the Lok Adalats (c 80% per annum over last two years). The amount recovered by Lok Adalats...
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...transfers Profits among the poor Banks extending their reach Riverboat lenders in Brazil Small loans prove profitable in Indonesia Attijariwafa looks south in Africa Betting on savings in Colombia Partnerships with retailers A shopping trip to the branch in Latin America Retail channels in Mexico Policy initiatives Take it from their salaries in Brazil Push for Islamic finance in Malaysia 2 5 6 9 12 15 18 19 21 23 25 28 29 31 33 34 37 1 © The Economist Intelligence Unit Limited 2012 Beyond branches Innovations in emerging-market banking Introduction B anks in emerging markets are increasingly weighty in global finance and still enjoy plenty of room to grow in their home markets. But they will do so in innovative ways that set them apart from the lenders of the developed world. The continuing rise of emerging markets will boost the importance of banks in developing countries in the coming decades. These financial firms will not follow the same business models as their developed-country counterparts, however. Instead, they will rely much less on the branded branch, the traditional outlet for banking services. New technologies, innovative low-cost business models and supportive policy changes will permit lenders to engage ever greater numbers of consumers in sustainable and profitable ways. Many of these individuals will become users of formal financial services for the first time in their lives. Unlike the storefront travel agent or video rental shop, the bank branch...
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...A Comparative Study Of NBFC in India 2010 Table of Contents EXECUTIVE SUMMARY .................................................................................................................. 3 CHAPTER-1 INTRODUCTION ......................................................................................................... 4 1.1 Types Of NBFC‘s ......................................................................................................................... 5 1.2 Regulations of NBFC‘s ................................................................................................................. 6 1.3 Guidelines for new deposits .......................................................................................................... 8 1.4 Responsibilities ........................................................................................................................... 11 1.5 Current Scenario ......................................................................................................................... 12 CHAPTER-2 Literature review ......................................................................................................... 14 2.1 Importance Of NBFC‘s ............................................................................................................... 15 2.2 Role of NBFC‘s .......................................................................................................................... 16 2.3 On Global Crisis .........
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...“Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” Submitted for partial fulfilment of the Award Of Master of Business Administration DEGREE (2011-2013) Submitted By ArushiBhutani 1103270034 UNDER THE GUIDANCE OF Internal Guide:JayaPandey School of Management ABES ENGINEERING COLLEGE, GHAZIABAD (ISO 9001:2000 certified) AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA Candidate’s Declaration/Certificate I “ARUSHI BHUTANI” hereby declare that the work which is being presented in this report entitled “Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” is an authentic record of my own work carried out under the supervision of Ms. “JAYA PANDEY”. The matter embodied in this report has not been submitted by me for the award of any other degree. Dated: ARUSHI BHUTANI MBA Department This is to certify that the above statements made by the candidate are correct to the best of my knowledge. Prof. Rakesh Passi JAYA PANDEY Head of Department Designation: Date: Department: Date: ACKNOWLEDGEMENT “Interdependence is a higher value than independence” Some says “Managers are born and some says managers are made”. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are guided...
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