...Introduction The Indian Financial Institutions Sector The Indian Financial sector is still dominated by Bank intermediation. Though the size of Capital market has started expanding significantly from the early 1990s, bank intermediation remains the dominant feature. The market capitalization as a percentage of GDP in India is $ 1.03 trillion, which is about 90% of the GDP, while countries like Hong Kong (525% of GDP), Singapore (221%) are way ahead. India s Bond market capitalization also remains low at 50 % (McKinsey report) with the corporate bond market way behind the government debt market. The bank deposits account for 52% of the GDP, and about three fourth of the total assets of the financial system. (Paper by Wharton publications on financial systems in India, 2007). The Non Banking sector, including the Mutual funds, Non Banking Financial Companies, Insurance companies and Other Financial institutions account for over 30% of the Financial Sector’s assets. This adds up to about 26 lakh crore in assets (2008-09-FSAP). According to The Financial Development index-2008, India scores better in Financial intermediation through Non-Banks ranking 16th, compared to a rank of 50th in terms of Banks. India ranks better in terms of capital access comparable to Japan, in spite of much lower assets/GDP comparatively. Classification of Financial institutions The Financial institutions in India can be broadly classified into the categories as listed in the representation...
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... * Why banking sector and how you are the right person for it ? * What is your father's Job Background ? * What are NPA (Non-Performing Assets), how can u use technical knowledge in correcting the balance sheet? * How Can NPA be reduced ? * For unemployed people, which plans are addopted by government ? * Tell us About your native place and famous places near to it. * What was the Headline in Today's Newspaper?(Main Page and Financial Page Both). * What are functions of Banks and How does banking effect the economy of the country? * Difference between Fiscal and Moinetary Policy ? * Number of Districts in Your and Nearby States ? Governor, Chief Minsiter and Other Ministers of Your State (Like Education, Tourism Ministers )? * Latest Noble Prize Winners, Padam Awards Winners, Miss India, Miss World Miss Universe Etc. * How is Future growth of commercial banks in India and any hurdles to it ? * Banks VS NBFCs (Non Banking Finance Companies) ? * Questions About Budget 2013 - 14 and current five year plan. * Difference between Cheques, DD, Bill of Exchanges and Certificate of Deposit ? * Direct and Indirect Taxes In India. * Important People of India - Chief of Planning Commission and Election Commission Etc. CM and Governors of All States. * Where you want to see yourself after 5 Years? * Your Strengths and Weakness ? * RBI's Role in Economy. * If you get a better job in Public Sector (IAS/PCS Etc...
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...There are a very wide variety of options available for an MBA with specialization in Finance. Today, an MBA with a Finance Specialization learns a variety of subjects like Corporate finance, Costing, Budgeting, International Finance, working Capital management, investments and securities etc.With increased financial liberalization a wide array and wide variety of jobs are available to an MBA with specialization in finance. He can be working in the corporate Finance function of a major manufacturing Organization looking after management of funds for that corporate, working out working capital limits of the corporate and dealing with Banks and other financial lending institutions etc. | | A finance MBA has an option of working with leading banks or with leading Non banking Finance Companies or leading Finance Companies other than Banks. He also has options of working as a securities analyst or working with brokerage firms and dealing in buying and selling securities. Operations in the security market or the stock market is the biggest industry in India. With increased opening up of the Indian Financial market and increased international money pouring into the Indian Stocks the option available for MBA Finance are endless. Same is true of a person dealing in Foreign Currency transaction either in bank of in a manufacturing Company.But here is a word of caution: jobs of security analyst and that of Foreign currency trader are high pressure jobs which at times lead to significant...
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...The relationship between the following variables and the banking profitability will be equally verified even if these variables are not the main of this thesis. vi. There is a relationship between liquidity and bank profitability vii. There is a relationship between bank size and bank profitability viii. There is a relationship between bank ownership and bank profitability ix. There is a relationship between loans to assets ratio and bank profitability x. There is a relationship between loans to deposits and bank profitability xi. There is an influence of macro-economic factors (inflation and G.D.P) on banking performance What is the correlation between banking profitability and its determinants? What are the main determinants of the banking...
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...Introduction Indian banking system has emerged as a vibrant sector in the Indian economy. Strong regulatory mechanism, inherent strength in the economy, and progressive policy framework which supports, nurtures, and helps in growing the financial institutions. Indian financial services industry is dominated by the banking sector that contributes significantly to the level of economic activity. The banking structure in India is broadly classified into public sector banks, private sector banks and foreign banks. The public sector banks continue to dominate the banking industry, in terms of lending and borrowing, and it has widely spread out branches which help greatly in pooling up of resources as well as in revenue generation for credit creation. The role of banks in accelerating economic development of the country has been increasingly recognized since the nationalization This facilitated the rapid expansion of banking in terms of its geographical reach covering rural India, in turn leading to significant growth in deposits and advances. Eventually, however, the government used banking sector to finance its own deficit by frequently increasing cash reserve ratios (CRR) and statutory liquidity ratio (SLR). Deregulation of the Indian financial system in 1991 followed by various financial sector reforms during the period 1990 through 1998 led to a major restructuring of the Indian banking industry. India has entered high growth trajectory with the initiation of economic reforms...
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...Implications of M&As of Banking sector on Indian economy Author Author Shilpa Vivek Agrawal Shreya Deepak Saraf Novel Institute of Management Studies, Novel Institute of Management Studies Chinchwad, Pune. India. Chinchwad, Pune. India. Co-Author Dr. D.M Gujarathi Chairman BOS, Cost and Works Accounting University of Pune, India --------------------------------------------------------------------------------------------------------------------- Abstract Financial System is the most important institutional and functional vehicle for economic transformation of any country. India is slowly but surely moving from a regime of 'large number of small banks' to 'small number of large banks. The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. M & A in banking sector have been on rise in recent past both globally & in India. With the help of mergers and acquisitions in the banking sector, the banks can achieve significant growth...
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...This article was downloaded by: [University of Glasgow] On: 06 August 2013, At: 08:28 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of Transnational Management Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/wtnm20 Diversification, Strategy, and Stability of Lebanese Banks: A Non-Parametric DEA Approach Rock-Antoine Mehanna & Youssef Yazbeck a b a b Sagesse University, Furn el Shebak, Lebanon Saint Joseph University, Beirut, Lebanon Published online: 14 Jun 2012. To cite this article: Rock-Antoine Mehanna & Youssef Yazbeck (2012) Diversification, Strategy, and Stability of Lebanese Banks: A Non-Parametric DEA Approach, Journal of Transnational Management, 17:2, 155-166, DOI: 10.1080/15475778.2012.676939 To link to this article: http://dx.doi.org/10.1080/15475778.2012.676939 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed...
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...Financial Institutions in India- Financial sector plays an indispensable role in the overall development of a country. The most important constituent of this sector is the financial institutions, which act as a conduit for the transfer of resources from net savers to net borrowers, that is, from those who spend less than their earnings to those who spend more than their earnings. The banking institutions of India play a major role in the economy of the country. The banking institutions are the providers of depository and transaction services. These activities are the major sources of creating money. The banking institutions are the major sources of providing loans and other credit facilities to the clients. Apart from the banking financial institutions, there are a number of specialized financial institutions in India that have been incorporated for a definite purpose. These institutions include the insurance companies, the housing finance companies, mutual funds, merchant banks, credit reporting and debt collection companies and many more. Apart from these, there are several other financial institutions that are existing in the country. These are the stock brokers and sub-brokers, portfolio managers, investment advisors, underwriters, foreign institutional investors and many more. They are divided in two categories. The first type refers to the regulatory institutions and the second type refers to the intermediaries. * The regulators are assigned with the job of governing...
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...An Overview of the Malaysian Banking Sector FINA0501 ASIAN FINANCIAL INSTITUTIONS TERM PAPER LEE JUNHONG, JEREMY 2010540826 I. Introduction Malaysia has been an important player in the Asian economy since the early days of independence, and even before that, as a British protectorate. It is currently the third largest economy in Southeast Asia, and is the 28th largest economy in the world in terms of purchasing power parity according to the World Bank. Malaysia has also successfully diversified its role by focusing her economy on both the traditional sphere of primary agricultural produce as well as being a hub for light manufacturing in consumer durables and electronics. Strong economic planning and farsighted vision by both the government and central bank has been instrumental in maintaining a strong growth rate of her economy; her combined year on year growth since independence in 1957 has averaged 6.6%, which is no doubt a stellar record and one of the highest in Asia. The financial institutions and their functions have been instrumental in this success, and this paper will strive to highlight the strengths and weaknesses, as well as a general overview of the Malaysian banking sector. I. Historical background The earliest beginnings of the banking sector in Malaysia dates back to the early 19th Century under British influence and the expatriate (mainly British) merchant communities. The Straits Settlements comprising of Singapore, Malacca and Penang were administered...
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...The sector was characterized by small sized banks with high overheads; low capital base averaging less than $10million; heavy reliance on government patronage and loss making. Nigeria’s banking sector was still characterized by a high degree of fragmentation and low levels of financial intermediation up until 2004. In the light of the foregoing, banks are compelled by the Central Bank of Nigeria to raise their capital base from N2 billion to 25 billion on or before 31st December, 2005. Most banks resorted to mergers and acquisition as a survival strategy, which saw a reduction in the number of banks from 89 to 25. This study contributes to the concept of bank recapitalization by critically examining the impact of bank consolidation on the performance of banks using a sample of randomly selected Nigerian banks. It is the intention of the researcher to give more validity to empirical evidence that have been obtained by previous researchers on the subject matter. Relevance of the study The earliest set of studies evaluates the effects of bank consolidation through mergers and acquisitions comparing pre- and post- merger performance by measuring performance using either accounting or productive efficiency indicators.The results from both indicators have varied and at sometimes been contradictory. This can be explained by performance-influencing variables like size, brand name, diversification and cost reduction, there is still no reconciliation between these indicators. I intend...
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...Innovations and Inclusive Growth A Case of Banking Industry in India Kiran Kumar Kakarlapudi Background and Motivation India has entered high growth trajectory with the initiation of economic reforms in the early 1990s with a policy shift towards free market economy.1 While on the growth front, the economy has performed considerably well, on the other hand the issue of distributional effects of growth has gained momentum in the academic and policy environment. Thus, in the eleventh and twelfth five year plans, emphasis has been laid to achieve sustainable economic growth with inclusive development (Singh, 2011). The empirical evidences on India’s growth pattern show that, the fantabulous growth performance, to a large extent, is driven by high growth in the service sector which has grown at 8.1 percent per annum during 1990-91 to 2007-08. Similarly, the share of service sector Gross Domestic Product (GDP) has increased from less than half to 68 percent in 2007-08 (Acharya, 2008). 2 The insights from the studies on service sector growth in India reveal that the spurt in the service growth is driven by the rapid growth of business services (which include Information Technology), communication services, financial services, hotels and restaurants, and trade (distribution) services, which is facilitated by the advent and rapid diffusion of information technology (Gordon and Gupta, 2004; Banga, 2005; Verma, 2006; Eichengreen and Gupta, 2010).3 Further, it has been argued that, rapid...
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...SPECIAL ARTICLE Challenges to Financial Inclusion in India The Case of Andhra Pradesh S Ananth, T Sabri Öncü Focusing on the institutional challenges to financial inclusion in Andhra Pradesh, this paper argues that it is the inability of formal financial institutions to meet the specific needs of the poor that has enabled informal service providers to fill the vacuum. Without a paradigm shift, especially on the part of banks, financial inclusion is bound to fall short of expectations. It proposes that the banking sector should look at efforts to expand inclusion not as a capital cost or as a charitable expense, but as a long-term investment in the future. The soundness of such an investment is borne out in the success of individual business correspondents in some districts of the state. 1 Introduction The views expressed in this paper are those of the authors and do not necessarily reflect views of the Centre for Advanced Financial Research and Learning. S Ananth and T Sabri Öncü (Sabrioncu.cafral@rbi.org.in) are with the Centre for Advanced Financial Research and Learning, Mumbai. Economic & Political Weekly EPW inancial inclusion has become central to Indian policymaking over the past few years and various attempts have been made to expand its scope. Despite these attempts, the challenges to financial inclusion remain formidable. These attempts and challenges have to be not only examined in the context of an increasingly globalised economy, of expanding markets...
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...Technical Paper on Differentiated Bank Licences | | |I. Introduction | | | |II. Statutory background- Banking Regulation Act, 1949 | | | |III. Policy of issuing licence to banks in India | | | |IV. Differentiated Bank Licensing- Examining Pros and Cons | | ...
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...INDIAN BANKING SECTOR ACKNOWLEDGEMENT Any accomplishment requires the effort of many people and this work is not different. We would like to express our gratitude to the faculty for his invaluable insights, without which this project would not have been completed. We would also like to thank everyone including our friends who directly or indirectly helped us in the completion of this project. DECLARATION We hereby declare that the project titled “Indian Banking Sector” is an original and independent work and is the end result of our own efforts and that the acknowledgement has been given in the bibliography and references to the sources are they printed, electronic or personal. TABLE OF CONTENTS 1. ACKNOWLEDGEMENT………………………………………………..….1 2. DECLARATION……………………………………………………………..2 3. INTRODUCTION……………………………………………………………4 4. CURRENT TRNEDS.……….………………………………………………5 5. INDUSTRY STRUCTURE………………………………………………….7 6. MARKET STRUCTURE…………………………………………………….9 7. NATURE OF COMPETITIVENESS……………………………………….10 8. FUTURE PROSPECTS…………………………………………………….11 9. CONCLUSION……………………………………………………………….12 10. BIBLIOGRAPHY/WEBLIOGRAPHY……………………………………….13 INTRODUCTION: The executives of India's banking community nodded their heads proudly when Prime Minister Manmohan Singh said in a speech: "If there is one aspect in which we can confidentially assert that India is ahead of China, it is in the robustness and soundness of our banking system...
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...* Critical Analysis on Costs and Benefits of the Financial Sector Within the UK. * * * * * * * * * * * * * * * * * Introduction The international financial crisis has drawn an international attention in financial regulation and policies made by governments have become increasingly prominent. In particular, strengthening financial regulation in London as an international financial centre requires huge efforts. London has been able to an international financial centre continuously, mainly due to a large number talent are familiar with the financial industry London has a unique advantage in language and location (Re, 2005). In addition to banking sectors, insurance, trust, securities and asset management business also developed. However DeMartino (2000) highlighted the current global economic depression and international financial crisis, along with UK Treasury published paper “The reform of the financial markets” referred to as “the worst crisis in 60 years”. In contrast, Frieden (2000) described the analysis of the causes of the British government's international financial crisis, and make policy recommendations on how to strengthen financial regulation. UK Financial Regulation Authorities According to Green (2011) Britain's “2009 Banking Act” was taken effect in which compared with the previous various banking laws, this law shows characteristics such as authorizing the Bank...
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