| COVER
STORY Institutional
Investors - Bullish on Indian Banks
- - K Seethapathi, Arindam Banerjee
Of
late, the Indian banking sector has been in the limelight.
The reasons are several. This article focuses on the grueling
issue of foreign investment through various routes in Indian
banks and its trends and patterns over the last couple of
years. The foreign investments are basically in the form of
FDIs, FIIs, PISs, IPOs, etc. This article tries to make a
comprehensive study on the foreign investment pattern in Indian
public sector banks, as well as in the private sector banks.
© 2005 IUP. All Rights Reserved
RISK
Components
of Cost of Carry for Index Futures
- - Sharon Jose
Index
futures have been one of the latest innovations in the financial
markets. This article explains in detail, the complete theoretical
framework of index futures. It also discusses the growth and
trends in the index futures market. The complexities involved
in the trading mechanism of such products are also discussed
at length. In essence, the article captures the pros and cons
involved in index futures and their application.
© 2005 IUP. All Rights Reserved
RISK
Credit
Derivatives: A New Promise for the Indian Banking Industry
- - Amandio FC da Silva
Credit
derivatives are one of the latest innovations in the financial
markets that have of late gained enough importance and relevance.
This article speaks about the use of such credit derivatives
products in the banking industry. Primarily, it explains the
various types of credit derivatives products, the complex
nature of such products and the ways by which banks can control
and manage their risks by using such products.
© 2005 IUP. All Rights Reserved
RISK
Derivatives:
The Other Side
- - Unnikrishnan KP
Derivatives
are one of the finest crafts of financial innovation. The
use of this complicated and sophisticated instrument is varied
and large. But our financial system has witnessed a number
of scandals and scams with the involvement of financial derivatives.
This article attempts to give a brief idea of derivatives
as a financial instrument, its usefulness and its destructive
nature.
© 2005 IUP. All Rights Reserved
RISK
Growth
of Market for Credit Risk Management
- - Dibyendu Dutta
Of
the various risks that plague any organization, credit risk
is the most prominent. This is primarily due to the inherent
complexity in understanding as well as measuring credit risk.
This article throws light on the theoretical framework of
the same and the emergence of the credit derivatives market.
The traditional methods of credit risk management and the
impact of such products on the Indian economy are also discussed
in detail.
© 2005 IUP. All Rights Reserved
TREASURY
Export
Credit -Interest Rates Matters
- - Venkatesh S Bijoor
The
Government of India aims to achieve new heights in global
trade through its National Foreign Trade Policy. But, the
interest rate structure of exportfinance in the country is
not a motivating one for the small and medium scale exporters.
The question that arises here is about the coordination of
theinterest rate structure for export credit and the government's
foreign trade policy objectives.
© 2005 IUP. All Rights Reserved
TREASURY
Merger
of SBI with its Seven Associates
- - KV Saraswathi
Merger
in Indian public sector banks is the most talked about topic
these days. If the vision of the Finance Minister becomes
a reality we are not far from that day when mergers will actually
take place. This article focuses on the feasibility of mergers
within the State Bank Group. It begins with the evolution
of the country's biggest bank, speaks about its financial
position and the outcome of the merged entity. At the same
time, it also indicates the hindrances in the path of the
merger.
© 2005 IUP. All Rights Reserved
FOREX
FDI
- Its Role in Building Human Capital
- - Puja Guha and Chandan Mukherjee
Theoretical
literature on FDI focuses largely on the positive impact of
FDI on the human capital development. However, it can be argued
that it is not the inflow of FDI that develops human capital,
rather, the developed human capital leads to the inflow of
FDI and in the process human capital gets enhanced. This article
highlights this fact in the light of the experiences of different
countries.
© 2005 IUP. All Rights Reserved
FOREX
The
Chinese Economy: Touching High
- - Sanjeev Kumar,Samuel B Sekar
China
is all set to become the world's third largest trader behind
the US and Germany. Modern industrialization and globalization,
recovering world economy along with cheap labor costs are
the factors that can fetch Chinese economy the status of the
world leader. India, the world's second largest populated
country is still far away from china in economic development.
This article talks about the symptoms of an overheating economy
in china and its implications for India.
© 2005 IUP. All Rights Reserved
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