IMAGE MASTI
MESSAGE FROM THE DIRECTOR, IMA
The challenges that life throws at you, makes you explore the untouched facets of your own personality and there is nothing more intoxicating than challenging your own limits. This is what made me come to IMA. As a newborn has to be carefully cradled and moulded into a fine young adult, so is the way IMA has to travel. I envision IMA as the best banking institute across the face of the globe in the coming years. I see the world emulating us and trying to achieve the
benchmark set by us.
As I entered IMA on June 16th, I was reminded of a bee hive buzzing with activity. The energy flowing through the aircould charge up any dead battery and get it working- and why not, that’s what the youth is about. The youth- you, are an asset to the nation. I view you as self actualized people- knowing the right from the wrong, understanding what commitment can do to an organisation on a whole and to you at an individual level.
I want the Pos of IMA to grow and blossom into human beings the world can envy, to take the nation to the horizonsnever explored or experienced. I am confident that you- together can make all the difference in the world.
As every journey of thousands of miles, begin with the first step, I am here to take those first few steps with you.
All the Best…!!!
Brig. Pradeep Singh Siwach
benchmark set by us.
As I entered IMA on June 16th, I was reminded of a bee hive buzzing with activity. The energy flowing through the aircould charge up any dead battery and get it working- and why not, that’s what the youth is about. The youth- you, are an asset to the nation. I view you as self actualized people- knowing the right from the wrong, understanding what commitment can do to an organisation on a whole and to you at an individual level.
I want the Pos of IMA to grow and blossom into human beings the world can envy, to take the nation to the horizonsnever explored or experienced. I am confident that you- together can make all the difference in the world.
As every journey of thousands of miles, begin with the first step, I am here to take those first few steps with you.
All the Best…!!!
Brig. Pradeep Singh Siwach
A Brief Introduction of Our Director
Brig. Pradeep Singh Siwach is an M.Sc. in Defence studies from Chennai University and MMS from Osmania University. He is currently enrolled for PhD in Management at Osmania University. Brig. Siwach has served in the army for 34 years. Prior to joining us at IMA, he was the Head of Faculty at Tri Service College of Defence Management. He has presented research papers on strategic management and HRD subjects in reputed seminars and journals. You can reach him with all your queries and problems at pradeep.siwach@manipalu.com.
We welcome you sir.
On behalf of all PO s at IMA
We welcome you sir.
On behalf of all PO s at IMA
FROM THE EDITORS DESK
On a wet & melancholy Sunday morning, I was walking past the Hussain Sagar. The ancient & somewhat stale wind blowing from the west made my walk even more calm & tranquil. At intervals, a lonely bird sang, cleaving the almost engulfing silence. It was then I heard the murmur… Periodic yet prominent. It rose… I knew I was getting closer to the source, it sounded like voices rising in unison. I was really curious…early in the morning, what is exactly
happening out there? And then I saw them… In the middle of the Sanjeeva Reddy Park, they all stood in somewhat ill-formed rows, with their posh & expensive cars waiting for the respective privileged masters, outside the park. The Corporate honchos of Hyderabad…business tycoons, Executives of big MNCs…charismatic, powerful & almost embarrassingly rich, …guess what were they doing? Believe me…they were laughing! Yes… they were… a big, hearty laughter… at regular intervals. Their old & seasoned voices tore through the silence of the park as they laughed…. echoed almost. ‘The corporate laughter’ or ‘the laugh therapy’ they call it. They say, a hearty laughter for 10 minutes early in the morning helps to control the regulation of hormonal flows… thereby calms down the ever jangling corporate nerves, provides them peace… the most craved-for feeling these days. Here at IMA, probably we all can understand what those people were trying to do. We too feel the pinch… don’t we? Clichéd days go by, with the elements of pressure piling up on our young shoulders. Assignments, presentations, exams, long unending hours at IMA… no time for ourselves... to think, to ponder over the time we’re going through. It’s all too systematic, too stagnant. We all want the weekend to come… we all crave for relief. Even then, we have lots of work in the weekends as well. Where’s the way out? So here we are! Presenting you a new fun-pill, the new edition of IMAge…. The ultimate laugh-riot. You will find
your stress melting away…as you indulge in the fun & the frolic. IMAge will be our own laughter therapy.
Finally, I would like to thank all those who have worked really hard to make this concept a humour-filled reality. My sincere gratitude goes to Debarti Dutta, the co-ordinator of IMAge and all the executive board members. A special thanks to Pritam Kar for helping out in the proof reading process and of course, Jagdeshwar Rao Senapathi who takes care of the online edition of IMAge. This thanksgiving session will be incomplete without thanking our own Raghu Sir
for helping us out in writing the Highlights of “Indian Banking Conference, 2008” at ISB, Hyderabad.
At the end of it all, it’s a collective effort and it will give us enormous happiness if this edition lights up your face with a hearty smile. Laughter is undoubtedly the best medicine and the greatest prize for us.
Happy reading.
Chiranjibi Dipti Ranjan Panda
happening out there? And then I saw them… In the middle of the Sanjeeva Reddy Park, they all stood in somewhat ill-formed rows, with their posh & expensive cars waiting for the respective privileged masters, outside the park. The Corporate honchos of Hyderabad…business tycoons, Executives of big MNCs…charismatic, powerful & almost embarrassingly rich, …guess what were they doing? Believe me…they were laughing! Yes… they were… a big, hearty laughter… at regular intervals. Their old & seasoned voices tore through the silence of the park as they laughed…. echoed almost. ‘The corporate laughter’ or ‘the laugh therapy’ they call it. They say, a hearty laughter for 10 minutes early in the morning helps to control the regulation of hormonal flows… thereby calms down the ever jangling corporate nerves, provides them peace… the most craved-for feeling these days. Here at IMA, probably we all can understand what those people were trying to do. We too feel the pinch… don’t we? Clichéd days go by, with the elements of pressure piling up on our young shoulders. Assignments, presentations, exams, long unending hours at IMA… no time for ourselves... to think, to ponder over the time we’re going through. It’s all too systematic, too stagnant. We all want the weekend to come… we all crave for relief. Even then, we have lots of work in the weekends as well. Where’s the way out? So here we are! Presenting you a new fun-pill, the new edition of IMAge…. The ultimate laugh-riot. You will find
your stress melting away…as you indulge in the fun & the frolic. IMAge will be our own laughter therapy.
Finally, I would like to thank all those who have worked really hard to make this concept a humour-filled reality. My sincere gratitude goes to Debarti Dutta, the co-ordinator of IMAge and all the executive board members. A special thanks to Pritam Kar for helping out in the proof reading process and of course, Jagdeshwar Rao Senapathi who takes care of the online edition of IMAge. This thanksgiving session will be incomplete without thanking our own Raghu Sir
for helping us out in writing the Highlights of “Indian Banking Conference, 2008” at ISB, Hyderabad.
At the end of it all, it’s a collective effort and it will give us enormous happiness if this edition lights up your face with a hearty smile. Laughter is undoubtedly the best medicine and the greatest prize for us.
Happy reading.
Chiranjibi Dipti Ranjan Panda
From the mouth oF the Co-OrdinatOr
A big hello to all the readers and a grand welcome to the third edition of Image... better known as the Masti Edition.
I would like to start off with a hearty congratulations to team IMAge for bringing out this edition, as it required special efforts on everyone's part – owing mainly to the various other tests and activities that took up a lot of our time here at IMA over the last 2 months. I would also like to thank each and every one of the students at IMA for some really amazing articles. The articles
included in this edition are sure to keep you glued to the magazine. While there are great stories and funny poems, there are also “Masti” facts about IMA, details on great places to hang out while at Hyderabad and brilliant artwork. This edition is sure to strike a chord with every IMA student as it brings forth issues close to our hearts while making an attempt to ensure that good humor prevails. If you want to know what I am talking about then let me just hint at the
joke on the never ending lunch line – hidden somewhere in this edition – for you to find, read and laugh over.
Lastly, yet most signficantly, I have to thank Dr. Baishali Mitra for her unending zeal and enthusiasm in helping us bring out this edition. She was truly one of the pillars of support for the IMAGE team. Thank you Madam.
Dear Readers, before I sign off let me congratulate the winners of the IMAGE contest Winners for the last edition and remind all of you that we have contests galore for you to indulge yourselves this time around too. IMAge, the Masti Edition, has truly been an amazing experience for me and I hope that each one of you has a rocking time whenever you pick this edition up.
Bye Bye, Cheers, & Happy Reading.
Debarati Dutta.
I would like to start off with a hearty congratulations to team IMAge for bringing out this edition, as it required special efforts on everyone's part – owing mainly to the various other tests and activities that took up a lot of our time here at IMA over the last 2 months. I would also like to thank each and every one of the students at IMA for some really amazing articles. The articles
included in this edition are sure to keep you glued to the magazine. While there are great stories and funny poems, there are also “Masti” facts about IMA, details on great places to hang out while at Hyderabad and brilliant artwork. This edition is sure to strike a chord with every IMA student as it brings forth issues close to our hearts while making an attempt to ensure that good humor prevails. If you want to know what I am talking about then let me just hint at the
joke on the never ending lunch line – hidden somewhere in this edition – for you to find, read and laugh over.
Lastly, yet most signficantly, I have to thank Dr. Baishali Mitra for her unending zeal and enthusiasm in helping us bring out this edition. She was truly one of the pillars of support for the IMAGE team. Thank you Madam.
Dear Readers, before I sign off let me congratulate the winners of the IMAGE contest Winners for the last edition and remind all of you that we have contests galore for you to indulge yourselves this time around too. IMAge, the Masti Edition, has truly been an amazing experience for me and I hope that each one of you has a rocking time whenever you pick this edition up.
Bye Bye, Cheers, & Happy Reading.
Debarati Dutta.
READER’S FEEDBACK AND RESPONSES
Feedback: A good work done by the team and is more informative and educative. Wishing the team all the best in their future endeavours.
J. Raghu (Faculty, IMA)
Response: Thank you Sir. Your active participation and the feedback will propel us to work harder.
Feedback: Good Work. A coloured copy next time would be great. Try making the next issue more entertainment oriented. Pranabjit Sahoo (Section: H)
Response: Well Pranab, feedback well taken. Hope you will enjoy the ‘Masti’ edition which definitely has loads of fun and entertainment in it. As for the coloured copy, we’re working on it and hopefully our next will be coloured! Enjoy reading.
(A lot many like Pranab want to see a colored magazine)
Feedback: A praiseworthy initiative. Hats off to you people on your time management skills. It’s really amazing how you people take out time from your hectic schedule for the magazine. Keep it up.
Anjali Bharti (Section: B)
Response: Hey Anjali, thank you. I am glad that you appreciate our efforts. Do keep pouring in your suggestions and comments. They keep us motivated. Happy reading!
Feedback: General knowledge + Technical knowledge + English + Inspiration + Management + Eustress + Entertainment +Love = IMAge. Must Include:- computer related articles for awareness of IT
Vishal Chourasia (Section: H)
Response: Wow! Now that’s called creativity. We will try to include an IT section next time. Since this is a ‘masti’ issue, we’ve focused more on light articles. Keep giving in your ideas.
Feedback: First of all, I want to congratulate you for your best efforts. We should include more creative articles and more useful information about banking technology being used these days.
Anil Kumar Singh (Section: G)
Response: Thanks Anil. We’ll try to include some such articles. It will be great to get some articles from you on the stated aspect. Hope you enjoy reading this issue.
Feedback: Good initiative. Continue publishing regularly. Include a ‘message’ or ‘SMS’ section if possible where people can write short messages for specific person or group, section or IMA as a whole.
Anonymous!
Response: First of all, we would like to know who you are! Thanks for that input. I think it will be fun writing for each other. We would really appreciate if you could write the first message and put it across to us!
J. Raghu (Faculty, IMA)
Response: Thank you Sir. Your active participation and the feedback will propel us to work harder.
Feedback: Good Work. A coloured copy next time would be great. Try making the next issue more entertainment oriented. Pranabjit Sahoo (Section: H)
Response: Well Pranab, feedback well taken. Hope you will enjoy the ‘Masti’ edition which definitely has loads of fun and entertainment in it. As for the coloured copy, we’re working on it and hopefully our next will be coloured! Enjoy reading.
(A lot many like Pranab want to see a colored magazine)
Feedback: A praiseworthy initiative. Hats off to you people on your time management skills. It’s really amazing how you people take out time from your hectic schedule for the magazine. Keep it up.
Anjali Bharti (Section: B)
Response: Hey Anjali, thank you. I am glad that you appreciate our efforts. Do keep pouring in your suggestions and comments. They keep us motivated. Happy reading!
Feedback: General knowledge + Technical knowledge + English + Inspiration + Management + Eustress + Entertainment +Love = IMAge. Must Include:- computer related articles for awareness of IT
Vishal Chourasia (Section: H)
Response: Wow! Now that’s called creativity. We will try to include an IT section next time. Since this is a ‘masti’ issue, we’ve focused more on light articles. Keep giving in your ideas.
Feedback: First of all, I want to congratulate you for your best efforts. We should include more creative articles and more useful information about banking technology being used these days.
Anil Kumar Singh (Section: G)
Response: Thanks Anil. We’ll try to include some such articles. It will be great to get some articles from you on the stated aspect. Hope you enjoy reading this issue.
Feedback: Good initiative. Continue publishing regularly. Include a ‘message’ or ‘SMS’ section if possible where people can write short messages for specific person or group, section or IMA as a whole.
Anonymous!
Response: First of all, we would like to know who you are! Thanks for that input. I think it will be fun writing for each other. We would really appreciate if you could write the first message and put it across to us!
HigHligHts of indian Banking ConferenCe – 2008 at ISB, HyderaBad
On 13th of June 2008, The Centre for Analytical Finance (CAF) hosted the Indian Banking Conference - 2008 at the Indian School of Business. Many senior bankers, financial experts, academic researchers, top officials and business heads from major Public, Private & Foreign banks operating in India & last but not the least, a good number of students from IMA Hyderabad participated in that conference.
The banking fraternity was represented by the RBI, State Bank of India, Axis Bank, Citigroup India, NABARD, Canara Bank etc. The theme of the conference was “Economic & Social responsibilities of Indian Commercial Banks and the possibility of a Healthy Compromise”. The Conference promised to address India’s changing role
in the new exciting banking landscape, and explore the myriad of opportunities that are evolving in this sector. Are there ways for the Indian commercial banks to achieve both objectives: performance and social responsibility? This was the question the Conference aimed to find answers to. It consisted of two panel discussions and a special address.
The first panel discussion on “Competitiveness of Indian Commercial Banks” had an eminent panel comprising Mr. OP Bhatt, Chairman, State Bank of India; Mr. PJ Nayak, Chairman & CEO, Axis Bank; Mr. Sanjay Nayar, CEO, Citigroup India and Mr. Joydeep Sengupta, Director, McKinsey & Co. The panel addressed several concerns such as how the performance of Indian banks compare to their global counterparts, what is the role of the Indian banking sector in the Indian economy at large, what are the concerns of the public sector banks, why does private sector have an edge, how do new banks compete with established banks, should banking be ownership neutral etc.
“Banks do not exist in vacuum. They make a large contribution to the country’s GDP growth, meet the demand of the growing middle class, contribute to infrastructure spending, and reach out the semi-urban and rural areas”, said Mr. Bhatt. He also stated that although public sector banks serve a number of social & macro-economic objectives like financial inclusion, agricultural lending, Govt. debt, stock market operation etc, but they are suffering from lower valuation. It is happening because of lower asset quality, lower productivity etc. “Public sector banks are inferior to their private counterparts in terms of customer service, proactive sales, world-class
operations etc. This is due to issues like inability to attract and retain best talent, union issues, and finally the ownership and operational issues,” he said.
Mr. Nayak shared his ideas that how the new private banks have gained significant market share by using technology for operational efficiency, superior sales & distribution channels and creation of mass outreach ATM services etc. In conclusion, he remarked that different ownership types have lead to different operation model, and it remains to be seen which business and operation model is most conducive to the Indian banking climate.
“Where does India want to take the banking sector as a whole?” was the question posted by the third panelist, Mr. Nayar. His presentation emphasized on the ‘scalability’ issue and its importance for foreign banks in India. He said “after food & fuel, the greatest shortage in India is Finance”. Foreign banks face many constraints like higher tax rates, no access to Govt. wallet, capital raising problems, regulatory framework for home & host countries etc. These things stand as barriers & obstruct their way to play an active role in the Indian financial industry.
Mr. Sengupta shared with the audience some of his research findings about how the sector has performed, how competitive it really is and finally the role of regulators and policy makers. “Indian banks have provided high returns to shareholders over the last few years. It is also serving the economy in terms of value creation and employment generation. The sector has improved on capital allocation, resulting in lower NPAs. However it still performs poorly in areas like access to finance. The loan concentration is limited to the four metros”, he pointedout.
During the second panel discussion on “Social Responsibilities of the Indian Banking Sector,” panelist Rajesh Chakrabarti, Assistant Professor of Finance at the ISB said that the social responsibility in the banking sector implies “stability, planned growth and equitable distribution of credit and growth of small industries and farming”. He also explained the barriers for wholesale financial inclusion like physical assess, eligibility, affordability etc.
Mr. Vijay Mahajan, Chairman, BASIX elaborated the main factors to assume financial inclusion like: private ownership, professional management, no cap on interest rates, commitment to local areas & also to focus on local community. He emphasised that “banks should be socially responsible, beyond the normal CSR, because banks are special and a high leverage businesses, and the deposits come from large number of small people. The failure of one bank can lead to system wide reverberations”, he explained.
Mr. K.G. Karmakar, MD, NABARD emphasized on the policy changes for the priority sectors, the need to redefine the role of rural money lenders, need for setting up Rural Credit Bureaus etc.
V.R. Das, Executive Director, R.B.I felt that deposit account is the gateway to financial inclusion & the approach is to connect people. The second thing he stressed on was the usage of multiple channels to expand outreach.
One of the highlights during the Conference was a special address on ‘Indian Banking Sector Reforms’ by Dr. Raghuram Rajan, Chair of Committee on Financial Sector Reform, Planning Commission; and Eric J Gleacher Distinguished Service Professor of Finance, University of Chicago.
Some of the recommendations he shared with the audience were –
i. Share credit information more widely
ii. Expedite the process of creating a unique national ID number with biometric identifications
iii. Encourage the local private banks since they have a good knowledge of the locality
iv. Increase the scope of foreign banks so that they can reach the masses
v. Allow liberal use of banking correspondents
vi. Liberalize interest rates that institutions can charge, ensuring credit reaches the poor
vii. Offer priority sector loan certificates to all entities that lend to eligible categories in the priority sector Throwing some light on the macro-economic frame work, Professor Rajan said, “Don’t expect the RBI to do magic.” He said that we expect too much from the RBI, and have innumerable and irreconcilable mandates. Thus the RBI is moving from one objective to another. “My suggestion to the RBI is to do one thing well at a time,” he said. The conference was concluded with vote of thanks proposed by Prof. M.R. Rao, Dean, ISB.
Special thanks to Raghu sir for his co-operation & guidance
The banking fraternity was represented by the RBI, State Bank of India, Axis Bank, Citigroup India, NABARD, Canara Bank etc. The theme of the conference was “Economic & Social responsibilities of Indian Commercial Banks and the possibility of a Healthy Compromise”. The Conference promised to address India’s changing role
in the new exciting banking landscape, and explore the myriad of opportunities that are evolving in this sector. Are there ways for the Indian commercial banks to achieve both objectives: performance and social responsibility? This was the question the Conference aimed to find answers to. It consisted of two panel discussions and a special address.
The first panel discussion on “Competitiveness of Indian Commercial Banks” had an eminent panel comprising Mr. OP Bhatt, Chairman, State Bank of India; Mr. PJ Nayak, Chairman & CEO, Axis Bank; Mr. Sanjay Nayar, CEO, Citigroup India and Mr. Joydeep Sengupta, Director, McKinsey & Co. The panel addressed several concerns such as how the performance of Indian banks compare to their global counterparts, what is the role of the Indian banking sector in the Indian economy at large, what are the concerns of the public sector banks, why does private sector have an edge, how do new banks compete with established banks, should banking be ownership neutral etc.
“Banks do not exist in vacuum. They make a large contribution to the country’s GDP growth, meet the demand of the growing middle class, contribute to infrastructure spending, and reach out the semi-urban and rural areas”, said Mr. Bhatt. He also stated that although public sector banks serve a number of social & macro-economic objectives like financial inclusion, agricultural lending, Govt. debt, stock market operation etc, but they are suffering from lower valuation. It is happening because of lower asset quality, lower productivity etc. “Public sector banks are inferior to their private counterparts in terms of customer service, proactive sales, world-class
operations etc. This is due to issues like inability to attract and retain best talent, union issues, and finally the ownership and operational issues,” he said.
Mr. Nayak shared his ideas that how the new private banks have gained significant market share by using technology for operational efficiency, superior sales & distribution channels and creation of mass outreach ATM services etc. In conclusion, he remarked that different ownership types have lead to different operation model, and it remains to be seen which business and operation model is most conducive to the Indian banking climate.
“Where does India want to take the banking sector as a whole?” was the question posted by the third panelist, Mr. Nayar. His presentation emphasized on the ‘scalability’ issue and its importance for foreign banks in India. He said “after food & fuel, the greatest shortage in India is Finance”. Foreign banks face many constraints like higher tax rates, no access to Govt. wallet, capital raising problems, regulatory framework for home & host countries etc. These things stand as barriers & obstruct their way to play an active role in the Indian financial industry.
Mr. Sengupta shared with the audience some of his research findings about how the sector has performed, how competitive it really is and finally the role of regulators and policy makers. “Indian banks have provided high returns to shareholders over the last few years. It is also serving the economy in terms of value creation and employment generation. The sector has improved on capital allocation, resulting in lower NPAs. However it still performs poorly in areas like access to finance. The loan concentration is limited to the four metros”, he pointedout.
During the second panel discussion on “Social Responsibilities of the Indian Banking Sector,” panelist Rajesh Chakrabarti, Assistant Professor of Finance at the ISB said that the social responsibility in the banking sector implies “stability, planned growth and equitable distribution of credit and growth of small industries and farming”. He also explained the barriers for wholesale financial inclusion like physical assess, eligibility, affordability etc.
Mr. Vijay Mahajan, Chairman, BASIX elaborated the main factors to assume financial inclusion like: private ownership, professional management, no cap on interest rates, commitment to local areas & also to focus on local community. He emphasised that “banks should be socially responsible, beyond the normal CSR, because banks are special and a high leverage businesses, and the deposits come from large number of small people. The failure of one bank can lead to system wide reverberations”, he explained.
Mr. K.G. Karmakar, MD, NABARD emphasized on the policy changes for the priority sectors, the need to redefine the role of rural money lenders, need for setting up Rural Credit Bureaus etc.
V.R. Das, Executive Director, R.B.I felt that deposit account is the gateway to financial inclusion & the approach is to connect people. The second thing he stressed on was the usage of multiple channels to expand outreach.
One of the highlights during the Conference was a special address on ‘Indian Banking Sector Reforms’ by Dr. Raghuram Rajan, Chair of Committee on Financial Sector Reform, Planning Commission; and Eric J Gleacher Distinguished Service Professor of Finance, University of Chicago.
Some of the recommendations he shared with the audience were –
i. Share credit information more widely
ii. Expedite the process of creating a unique national ID number with biometric identifications
iii. Encourage the local private banks since they have a good knowledge of the locality
iv. Increase the scope of foreign banks so that they can reach the masses
v. Allow liberal use of banking correspondents
vi. Liberalize interest rates that institutions can charge, ensuring credit reaches the poor
vii. Offer priority sector loan certificates to all entities that lend to eligible categories in the priority sector Throwing some light on the macro-economic frame work, Professor Rajan said, “Don’t expect the RBI to do magic.” He said that we expect too much from the RBI, and have innumerable and irreconcilable mandates. Thus the RBI is moving from one objective to another. “My suggestion to the RBI is to do one thing well at a time,” he said. The conference was concluded with vote of thanks proposed by Prof. M.R. Rao, Dean, ISB.
Special thanks to Raghu sir for his co-operation & guidance
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