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INTERVIEW
Monetary
Policy 2008-2009
Pointing
out that inflationary pressurers remain relatively strong
in India despite monetary tightening by the Central
Bank in recent months, the RBI has increased the repo
rate and cash reservation.
SPEECH
The
Indian banking industry : A retrospect of select aspects
--
V Leeladhar
© 2008 Address by V Leeladhar, Deputy Governor of the
Reserve Bank of India, on the occasion of the birth-centenary
celebrations of M Ct M Chettyar, founder of the Indian
Overseas Bank, Chennai, August 2, 2008.
COVER
STORY
Interest
Rate Risk Management in Banks : Under Pillar II of BCBS
-- V Venu Gopal
Interest
rate risk is said to be the largest market risk in the
banking books. It reflects the extent to which its financial
position is affected by fluctuations in market interest
rates. However, several economic forces affect the level
and direction of interest rates in the economy. This
article briefly discusses the issues of interest rate
risk management in the Indian banking scenario and several
practices in managing them.
©2008 IUP . All Rights Reserved
TREASURY
Islamic
Banking and Its Relevance to Indian Banking
-- Ravikant
The
concept of Islamic banking has gained importance all
over the world, including India, over the past few years.
Several foreign banks operating in India like Citibank,
Standard Chartered Bank, HSBC are operating interest-free
windows in several West Asian countries, Europe and
the US. There is also a much growing awareness about
the concept among Indian banks and it is generally felt
that there is a huge potential market in India for Islamic
banking products.
©2008 IUP . All Rights Reserved
TREASURY
Exchange-Traded
Currency Futures
-- Pooja Mirchandani
The
beginning of exchange-traded rupee futures in India
is a boon for Indian companies sitting on piles of green
derivative papers. Whether the opening up of trading
in futures through exchanges to speculators, arbitrageurs
and noise traders is a boon or a bane for the real hedgers,
time alone will tell.
© 2008 IUP . All Rights Reserved
TREASURY
FCCBs
: A Double-edged Sword
-- T Kiran Kumar
Foreign
Currency Convertible Bonds (FCCBs) have become hugely
popular in the Indian corporate sector as an instrument
to raise funds. However, the fall in the stock markets
over the past couple of weeks has taken the shine off
these instruments as investors are thinking twice before
choosing the option to convert these bonds into equity
shares.
© 2008 IUP . All Rights Reserved
FOREX
Windfall
Profit Tax : The Indian Scenario
-- Nirali Parikh
With crude oil prices soaring to $135 a barrel,
it is necessary to levy some tax on windfall profits
of all the private and joint venture oil-producing companies
extracting oil and gas in India. When these contractors
participated in the New Exploration Licensing Policy
(NELP), none of them could have envisaged crude oil
prices beyond $30 a barrel. It would be a failure on
the government's part to allow upstream contractors
additional gain of over $100 a barrel without any extra
work. Many other countries have gone ahead and renegotiated
their contracts with a threat of imposing windfall taxes
on such profits. This article discusses briefly the
microeconomic factors that come into this scenario.
© 2008 IUP . All Rights Reserved
FOREX
Efficient
Market Hypothesis and Indian Stock Market : A Critical
Assessment
-- Ashok Panigrahi
Although the `Efficient Market Hypothesis' (EMH)
is a cornerstone of modern financial theory, it is highly
controversial and often disputed. It is argued that
the EMH, which states that markets are generally both
rational and efficient and serve as reasonable leading
indicators of economic and corporate developments, is
fallacious and is actually a derivative of the perfect
competition model of capitalism, hardly based on anything
substantial as such. This article focuses on the limitations
of EMH and its application in the Indian stock market.
© 2008 IUP . All Rights Reserved
FOREX
Gujarat
Economy : An Overview
-- Sudha Menon
The
article presents a brief overview of the economy of
Gujarat, trends in the state domestic product, growth
rate, etc. It presents the contributions of different
sectors, sector-wise growth rate and major human development
indicators. The article also highlights the need for
a fundamental rethink about the economic development
model itself. A new approach that gives jobs and value
addition, generates benefit to the people of the state
and does not compromise on the environment can be the
state's future strategy for its accelerated economic
growth.
© 2008 IUP . All Rights Reserved
BOOK
REVIEW
Financing
of Small and Medium Enterprises in India
-- Authors: Ashok Kumar Mohanty and Durga Madhab Mahapatra
Reviewed by Pradeepta Kumar Samanta
Ever
since 2002, Small and Medium Enterprises (SMEs) have
been playing a key role in India's current double-digit
industrial growth, which is the longest cyclical upswing.
SMEs happen to be an important part of India Inc.'s
global thrust. They are meant to acquire companies to
gain the advantages of quick scale-up, technology acquisition
and the benefits of innovation. The purpose of this
book is to help broaden access to credit financing by
an underserved SME market in India.
© 2008 IUP . All Rights Reserved
SHORT
BOOK REVIEW
The
Profitability of Trading Rules and Volatility in Emerging
Financial Markets and The Future of the Dollar
-- Author: Imad Moosa A and Author: Benjamin J Cohen
© 2008 IUP . All Rights Reserved
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