COVER
SYORY
Indian
Banking: Consolidation Moves
- -K Seethapathi, T Jyotsna
Indian
banking sector needs consolidation because of a number of
reasons. With globalization, the competition faced by the
public sector banks in India is very high. At this juncture,
consolidation alone can help the smaller and weaker banks
to perform well. The present government is also promoting
the consolidation initiatives in the banking industry by offering
a number of sops. This article discusses the different issues
associated with the consolidation wave in the Indian banking
industry.
© 2004 IUP. All Rights Reserved.
COVER
SYORY
An
Insight: Merger in Indian Banks
- -Arindam Banerjee
Financial
sector consolidation has been one of the buzzwords doing the
rounds in financial dailies. It has especially been at the
forefront of discussion, with the top brass of the central
bank proposing to consolidate the public sector banks (PSBs)
in India. This article tries to give some insights on mergers
and emphasises the need for a surface study on their feasibility
before launching into a consolidation spree.
© 2004 IUP. All Rights Reserved.
TREASURY
RBI
and Mid-Term Policy
- -KR Satya Kumar Reddy
The
mid-term review of the monetary and credit policy by the RBI
considers the balance between growth and price stability in
a difficult geopolitical environment. Inflation, higher non-food
credit demand, and impact of globally rising interest rates
and oil prices had to be factored in this policy. The policy
tries to achieve a balance between price stability and maintaining
the momentum of growth. This article talks about the different
measures of RBI's mid-term monetary and credit policy.
© 2004 IUP. All Rights Reserved.
TREASURY
Debt
Market Debacle
- -Sanjeev Kumar , Samuel B Sekar
In
the mid-term review of the Annual Policy Statement for the
financial year 2004-05, announced on October 25, 2004, the
RBI has hiked the repo rate by 25 basis points to 4.75%. The
hike in the repo rate has the worst effect on the debt market
investor. The bank interest rate has also increased. The article
talks about the implication of repo rate on various investors
and borrowers, with emphasis on the debt market.
© 2004 IUP. All Rights Reserved.
TREASURY
The
Fall of GTB: Lessons for the Regulators
- -Dilip Dasgupta
Regulators
have an important role to play in creating public confidence
in financial institutions. As a result of the lessons learnt
from the GTB case, the regulators are now putting in place
more stringent norms for banks and financial institutions.
The RBI has taken a number of initiatives to improve the operational
efficiency of the banks. This article tries to shed light
on the recent initiatives taken by RBI to improve the efficiency
of the Indian banking sector.
© 2004 IUP. All Rights Reserved.
RISK
Securitization:
Issues and Perspectives
- -MPM Vinay Kumar
At
the global level, securitization is becoming more popular
among financial institutions . Securitization is meant to
avoid disparity between assets and liabilities of banks /Financial
Institutions (FIs). In order to promote securitization in
India, RBI has constituted a working group on asset securitization.
This article discusses the importance of asset securitization
for Indian banks , financial institutions and long-term project
financing. It also looks at the main problems associated with
securitization in the Indian context.
© 2004 IUP. All Rights Reserved.
RISK
Greeks:
The Heroes of the Option World
- -Alaap Shah
An
area of finance where Greeks are most used is the derivatives
market. The nature of derivatives itself has created room
for the existence of Greeks. The sensitivity of option prices
to change in the underlying and factors affecting the underlying
are measured using the Greeks. In option trading these Greeks
have different impact on calls and puts. This article talks
about the use, meaning, and implication of Greeks in the option
market.
© 2004 IUP. All Rights Reserved.
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