Sunday, January 19, 2014

2014 A Tough Year for the Indian Economy

A tough year ahead for the economy:
First decade of the century had witnessed greater height and steeper fall in global economy the same has been true for Indian economy. The greatness of Indian economy, though at pains, is that it kept on expanding twice the global economic expansion rate during this period. Some even say that the economy is moving more by sentiments than fundamentals, because we do not have the rate of savings and investments moving up as was the case five years ago.

Friday, January 3, 2014

VITALINFO: Why FinMin wants public sector lenders to rush into selling insurance

VITALINFO: Why FinMin wants public sector lenders to rush into selling insurancePSBs to sell the insurance products and invest in training of its staff already overloaded with other regular banking work and not having time to spare for training off their operating desks, would end up selling soaps of TATA by Proctor and Gamble. The bancassurance itself has not take off as a corporate agency model successfully. Most staff today know only the system and not banking domain. If they are asked to get into another domain insurance as well, the banks' balance sheets will take a big hit. It is time that the banks are allowed to do banking more efficiently and in a more customer-friendly manner and also devote more time for innovation of new deposit and credit products competitively in the emerging rural areas. It is also important that the human capital should be allowed to add its weight for strengthening Basel III emerging capital requirements. 'Let not thy winged days be spent in vain, where gone no gold can try them back again.'(Oliver Goldsmith) It is time to revisit the recommendation of the First Financial Sector Reforms of M. Narasimham on the Government diluting its hold over public sector banks, particularly in not getting into micro management. Let the banks decide for themselves what business they should do and what they should not and hold themselves responsible for all their decisions.