Wednesday, November 20, 2013

All about Bhartiya Mahila Bank - India's first All-Women Bank



The country’s first all-women commercial bank, the Bhartiya Mahila Bank (BMB), was inaugurated on Tuesday. The inauguration took place in Mumbai, and the event was graced by Prime Minister Dr. Manmohan Singh, Congress Chairperson Mrs. Sonia Gandhi, the Finance Minister Mr. P. Chidambaram and the RBI Governor Mr. Raghuram Rajan among other dignitaries. With this, the BMB commenced operations across seven branches. 

Some important highlights about the Bhartiya Mahila Bank:

  1. The BMB is the first public sector bank created by the Government of India. All other PSU banks such as SBI were, to begin with, private banks and were later nationalized. 
  2. The bank was launched with a corpus of Rs. 1000 Cr.
  3. The interest offered by BMB is as high as 4.5 % for savings accounts up to Rs. 1 lakh and 5 % for savings accounts beyond Rs. 1 lakh.
  4. The total business for BMB is forecasted to grow to 60,000 Cr. by 2020. Also, the number of branches will to 25 by mid 2014 and 770 branches by 2020.
  5. It will lend to women or to businesses which are either managed by or make products for women.
  6. The Bank will be headed by Usha Ananthsubramanian and will have an eighth member board  comprising members such as Tanya Dubash daughter of Adi Godrej, Kalpana Saroj, chairperson of Kamani Tubes, Chhavi Rajawat, the Harvard educated sarpanch of Soda village in Rajasthan and Nupur Mitra, ex-chairman of Dena Bank.
  7. The Bank will be headquartered in Delhi.

More than half of India’s population remains unbanked. Only 26% of women in India admit to having a bank account. The primary purpose of the BMB is financial inclusion of India's unbanked rural women. Also, one of the biggest issues faced by women is the problem of pledging collaterals against loans. The BMB aims to address this issue by offering collateral-free loans of up to Rs 1 crore to women.
     
     Let us all hope that the Bhartiya Mahila Bank succeeds in its noble cause of financially aiding the women of our country. Indeed, the success of a nation lies in the success of its women.

- Sufiyan Sarguroh
  SIMSREE Finance Forum
 

Tuesday, November 5, 2013

ARTHNEETI SEPTEMBER 2013 ISSUE



6 weeks is a short time, very short indeed, if you are considering the macroeconomic situation in India at least. The last six weeks have demonstrated how from virtually the onset of economic crisis, the macroeconomic situation recovered, so much so that the benchmark SENSEX is close to breaching the highest points recorded in history. There is a sense of confidence in the Finance Ministry and the RBI. Confidence is certainly commendable, but it must not turn into complacency.

The Artheenti September issue will take you through what really happened in the last 2 months, the fallout points, the emerging positives of late, and the path ahead. This publication also consists of articles on relevant and contemporary issues such as “Impact of QE Tapering on world growth” and “Rupee on a downhill yatra. But for how long?”. We also have an article from our alumnus Joiel Akilan of the 1994 batch on “Lessons for Team India Inc“. Also, we have published an interview with Mr. Kewal Handa who has served as the Managing Director at Wyeth Limited and Pfizer Limited. He shares his immense knowledge and insights on the pharmaceutical sector. To conclude, we have an article on “Dependence of Indian Markets on FIIs“ by the SIMSREE Finance Forum.
To continue reading, Click Here.
Happy Reading!
-          Team Arthneeti

Sunday, October 6, 2013

FISCUS '13


FISCUS 2013 : India and China – The New Torch Bearers of World Economy

5th October 2013 is a date that all SIMSREE students will remember for a long time. Through FISCUS ’13 – the annual financial summit of the institute - it was an honor and a privilege to have with us the stalwarts of finance in the corporate world. The theme for this year’s FISCUS was ‘India and China: The new Torch Bearers of World Economy’.
Mr. Seshagiri Rao – the joint Managing Director and group CFO for JSW Steel – was the Chief Guest. Mr. Atul Joshi – the Managing Director and CEO at India Rating and Research (a Fitch Group Company) – was the Key Note speaker for the event. The eminent panelists for the discussing the topic were Mr. Pramod Kasat – head of investment banking team at Investacorp and an alumnus of SIMSREE (batch of 1993); Mr. Tarun Sharma – Assistant General Manager at EXIM Bank of India and Mr. Nilay Rathi – General Manager (Commercial) at Century Textiles and Industries Limited.  The moderator for the discussion was Mr. Prashant Shetty – Director IDFC Capital and an alumnus of the Institute (batch of 1988).
The event, organized by the SIMSREE Finance Forum, was inaugurated by the traditional lighting of the lamp and the national anthem following which the Director of the Institute, Dr. Sandhya Dhabe, welcomed the esteemed guests to the Institute.
The Chief Guest for the event, Mr. Seshagiri Rao, then addressed the batch. He touched upon the challenges that the developed nations, namely USA and Europe, faced of late and what led to the various financial crises in these economies. In the backdrop of the current turbulent scenario, he also spoke about the opportunities that lie in emerging economies and outlined the path that could be followed. With a rich experience spanning three decades in the steel industry and in the corporate finance and banking sector, he also shared with the students the challenges that India faces with regards to Steel manufacturing and how the future is full of fruitful opportunities waiting to be tapped in to.
Mr. Atul Joshi, the Key Note speaker, brought to the event an insight to the economies of India and China from a Rating Company’s perspective. He first explained the students the ratings models followed for banks, corporate and the local governments. He also cited the disparities in the national and international ratings awarded to the institutions in India and its effect. Finally, he requested the students to have an optimistic attitude towards the future of the nation.
The stage was then opened for the panel discussion moderated by Mr. Prashant Shetty. All the panelists first spoke briefly on the subject. Mr Nilay Rathi shared with the students the challenges and opportunities that the Indian and Chinese economies face sighting the example of the textile industry. Mr. Tarun Sharma enlightened the students regarding the importance of exports for the development of any economy. Mr. Pramod Kasat elaborated upon the importance of investment, the differences between the Indian and the Chinese growth models, and the growth strategies to be followed. Among the wide array of questions raised by the audience were the ever increasing population challenges faced by the two nations, and whether it is a challenge or an opportunity, the political unrest between India and China, and how it may impact the economic ties between the two nations, the importance of trade fairs and the merits and challenges of the democracy in India and autocracy in China.
Mr. Seshagiri Rao concluded the discussion perfectly by saying “India and China need not confront and have conflict, but they need to collaborate and cooperate”. The event was concluded with a vote of thanks by the SIMSREE Finance Forum Coordinators.      

- Sufiyan Sarguroh,
  SIMSREE Finance Forum    

Saturday, September 28, 2013

1 Mistake Crippling Even the Most Talented Bloggers

I find talented bloggers who suffer from a mistake. A block. I am not immune from it.

Simple mistake to spot but it can be tough to correct.

"I am not making money with my blog so I must be a failure."

This one mistake led me to do stuff which lowered the value of my blogs. Posting too frequently. Moving away from networking. All that stuff.

Remember 1 thing; to make money blogging your blog must be cool.

Once you are cool, and people trust you, then the money flows in.

But reaching that cool factor requires you to create awesome content and make powerful connections with other bloggers, and you might not be getting paid much at all during that period of time.

You are not a failure. Failing is an event. You are unlimited.

Create awesome value.

Make powerful connections.

The money will keep. The Universe keeps a silent tab.

Carry On!

Please Follow Me on Twitter Here

- Image http://www.freedigitalphotos.net/

Saturday, September 21, 2013

Can You Overcome the Suffering of Letting Go?

I admit it.

I cannot run 2 successful blogs.

I can run 1 uber successful blog and a 2nd blog. But where your attention and energy goes, grows. So, dividing my most potent creative energies between 2 blogs by trying to post on a daily basis is not going to happen.

What does this mean for you? A little has changed. Please take these steps.

#1 - Follow Me on Twitter. Follow my other blog there for daily, value-packed, 2500 word, resource-style posts.

#2 - Look out for at least 1 update weekly here.

#3 - Pay attention to the theme here; it might just grow your online business quickly.

What is the theme? Suffering. Specifically, the suffering you experience by letting go. I did things like post 30 times daily here, push these posts like mad, networking like an animal, etc....and after 1 month of going bezerk I had to face facts.

I had to let go this blog. At least on the daily posting side of things. Because it was not working. I suffered through making this decision. Again, I run a successful blog. I would link up here but due to Triberr requirements, please click on my twitter account above, and link up through that spot.

But anyway, you might suffer terribly when letting go. Ego thing. I overcame the suffering of letting go. Now my other blog receives 7500 page views daily. L let go, I grow. Fun, right?

Anyway, apply this idea to your online business. Where are you suffering? Where can you let go? Where can you better devote your creative energies.

See you on twitter. Then at my other blog ;)

Of course, after that I will see you here next week!

Ryan Biddulph

Wednesday, September 18, 2013

Fed holds off tapering, cuts growth outlook

U.S. Federal Reserve chief Ben Bernanke said the central bank decided to hold off on slowing the US$85-billion a month in bond purchases to see more conclusive evidence that the recovery will be sustained, a move that surprised financial markets that were braced for a reduction in the stimulus program.

            
            The US Federal Reserve has decided in its latest monetary policy to maintain its economic stimulus program (the Quantitative Easing) despite speculation that it would start the tapering process. It had been widely speculated that the central bank would cut back the stimulus package, currently $85bn a month. The Reserve also reduced its growth forecasts for the US economy, cutting the 2013 outlook by 0.3 percentage points to a range of 2.0-2.3 per cent, and lowering the prediction for next year to 2.9-3.1 per cent.
            To give a backdrop to the entire situation, the US embarked on an easy money policy post the 2008 financial crisis. This was called the Quantitative Easing program wherein the Federal Reserve would buy bonds and other assets in order to push more money into the economy, thereby stimulating growth and reducing unemployment.  The most recent strategy, called QE3, had the Fed buying $85 billion of bonds every month.
            With the US economy stabling, and the unemployment estimates reducing to 6% for the year 2015, the US Fed Reserve Chief Ben Bernanke had previously indicated in June that the tapering of the QE program may begin by the end of this year. This had sparked a panicky flow of money out of the emerging markets and back to the US which had adversely affected the emerging economies, including India.
            In his statement today Bernanke said, ‘‘Conditions in the job market today are still far from what all of us would like to see. The committee has concern that rapid tightening of financial conditions in recent months would have the effect of slowing growth.’’ Another important point is that Mr. Bernanke said a decision on tapering asset purchases depends on economic data, and there is no set timetable. Previously he had indicated that the tapering will begin by the end of this year.
            Now that the QE tapering has been held off, the markets on the whole will be looking towards a revival of sorts. The US Dow Jones rose 1.11% to 15,701.82 and the NASDAQ by1.1% to 3,786.906. The BSE Sensex has already gained 500 points and is at 20,464 points (as of 11:20 AM IST). The Rupee has has come down to 61.95 to the Dollar, down by 1.44 (as of 11:20 AM IST).
All eyes are on the RBI monetary policy expected tomorrow (20th September) where it is expected that Mr. Raghuram Rajan will signal a reversal to a few of the tightening measures the RBI had taken previously.

- Sufiyan Sarguroh
  SIMSREE Finance Forum

Recent Bills Part-2

Pension Fund Regulatory and Development Authority (PFRDA) Bill

Background:  Pension Fund Regulatory and Development Authority (PFRDA) Bill was established by the Government of India on 23rd August 2003 to promote old age income security by establishing, developing and regulating pension funds. Pension bill was introduced into the parliament in 2005 for the first time. After nearly a decade, both houses of parliament i.e. Loksabha (4th September) and Rajyasabha (6th September) have finally passed the pension bill which aims to create a regulator for pension sector and extend the coverage of pension benefit to more people.

Why it’s important: At present only 12% of total active workforce are having formal pension and social security plans, while remaining 88% of workforce is having no old age security. This bill will help increase number of people investing in pension plans. It will also open door for 26% of FDI in pension funds.

Key Features:
1.    With the passage of the bill, more citizens of the country will be able to get pension cover. National Pension Scheme (NPS) has a corpus of around Rs. 35,000 crore with around 53 lakh subscribers, including those of 26 state governments.
2.    Subscriber will be able to open an account which will be portable across job changes. Subscriber will also decide the fund manager and schemes in which he is interested to invest his pension wealth. They can also switch schemes and fund managers.
3.    Government of India has also launched Swavalamban plan for people working in unorganized sector.  This scheme will encourage such people to save for their retirement.
4.    This bill will give PFRDA statutory powers. With statutory powers authority can pull up errant pension sector participants and ensure better subscriber protection.

What will be affected?

The bill provides subscribers a wide range of choices to invest their funds, for assured returns by opting for Government Bonds as well as in other funds depending on their capacity to take risk. The new law could help bring in new pension products in the market, thereby giving a choice to customers. Competition could also improve quality of service and returns. If these measures are successful, these could help mobilize substantial long-term funds, which can be used to build infrastructure. 

By, Abhijit Vasagade
SIMSREE Finance Forum