My typical husband

Am not sure what goes on in his mind, but am sure he is a more influenced by his parents...more specifically my idiot in law has a bigger say in his nodding hid head in affirmative or otherwise....

Ever since my wedding, my idiot in laws went into insecurity that their son will wave them a big good bye and elope with his bride(me). this led to many foolish arguments and sadistic attitude towards me. this included snatching my money to the tune of Rs 2 Lakhs and physical abuse toooo. Either way, my husband doesnot see any fault with his parents. they shoudl be secure (even though am sick and dying out of insecurity; both financially and physically) One can never imagine when sadism strikes my in-laws, suddenly they go psychic, hyper and what not. WHy the hell should i bear their emotional fancies????

Coming to my pretty smart and handsome husband....his divine parents are never at fault, his sister is who is insane and should be in a mental asylum is the perfect lady on earth. My husband never feels anythign responsibility towards me. He feels that staying with me itself is the biggest boon he gives me. i should treasure his presence in every manner. People who already read my previous blog on "worst people in my life"will understand that i left hell of the house along with my husband. Now my husband feels he is put to un-expressable pressure as he has to struggle between his bride and parents. His divine mother has changed a lot and loves me to the core (now that i have stashed away some finances for my future)...and so did i change..i hate them to the core, i dispise at the mere thought of catching up with them again .......

my changed mother in-law now wants a grandson..during my days with her in the hell (so called house worth half a million) ..i was put through the trauma of verbal abuse that i will never bear the kids....am sure that the verbal abuse will automatically eb transferred to her own daughter (who is already aborted..and will soon be in the mental asylum) ......the idiot-in-law was insecure that if my husband has kids with me, she will be put to untold misery ..she will be cheated upon by her own son by having a family with as low a person as me... she never performed a pooja or called a relative to introduce to me during my 365 days of hell..now that am out of the hell, she prays regularly to the Gods (i wonder if that can be demons too)

My husband who has a black cloth on his eyes feels no emotions at all. he fears accompanying me to a doc for kids (now we r married for 2 years)..he fears he will cheat his mom by having kids with me...as having kids will mean more financial stress and emotional binding with me...and that will be cheating his mom and cut down on financial help to his greedy father...
my sweet of a husband does not want to spend time with me..and how the hell can we bear kids without spending time??? with the hectic office schedules, we hardly have time on weekends and that too he should justify by smelling the sweet ass of his parents....and only with the nod of his greedy , idiot parents, will he come to spend time with me...infact he doesnot have time to shop with me for a storage solution that we have been planning since 6 months.....he doesnot have time to take me to a park or a new year party or in the least gift me a bunch of lfowers on my birthday!!! But his divine mom deserves a chocolate on her birthday....which my husband promptly denies..says he never bought chocolates ofor his mom, inspite of the fact that i showed him the shopping bill from his pocket......he has all the time in the world for his parents...am not sure if I should still stick on to the relation or not!!!!

worst people in my life

the title of the post itself gives some nasty feelings as to why the hell is this lady writing about worst people...people do write about good people and sweet memories ...they prefer to forget the bad ones, but i dare to pen down the worst part of my life too, which i think will definitely pinch where it pinches to the people who will ultimately know about this blog of mine...and give me a sense of satisfaction............

the in-laws or or as i would like to nick name...my idiot-in-lawsconsist of the ever greedy Father-in-law, my mever happy mother-in-law, the always fighter cock sister -in-law. this itself gives the first post intro of my so called in-laws family. And my husband though knows it all, doesnot want to accept that it is their fault, it is always me who is at fault...i had to literally force myself out of that hell of a house ..i never felt at home during my one-year stay int he joint family of these crazy people.

to cut the long story short...my sis-in-law is not on good terms with her in-laws and she behaves as if, me and my husband will crawl at her feet and say “Yes, oh great one, our life is all focused on you and you only! We have no feelings or emotions or anything except as they relate to YOU!!!" She assumes that it is only her husband (my brother-idiot-in-law) who gave away all the hard earned money to his parents and that her in-laws should come and smell her rose scented ass !!!!!!!!!!!!!

and coming ot my idiot in laws, it doesnot feel bad for them to snatch away all my hard earned money and my husband's money in the name of "marriage expenses"...inspite of the fact that my dad spent everything, they spend as much as 2 Lakhs for the marriage. And again, mind you, dont call it a dowry, they never beg dowry, all they need is reimbursement for marriage expenses which is a whooping 2 Lakhs..and their running expenses are just three times higher than what my parents spend in the same city.

overall, my greedy-father in law was successful in grabbing about 5 Lakhs from me and my husband, but it should not matter me, because me and my husband will inherit the house after his demise, after his wife's demise and if his sister feels not to file a case for the share in the property....which am sure wil take about 30 years in the least for me to inherit..... by which time, i will grow over 50 years for sure. All the while grabbing money, he used to say, dont worry my son, i will give u back the money as and when u need it, but when i needed petty 20K, he didnt have it, but within a week of my asking, he has 17K to purchase a refrigerator..and my husband thinks, his father is a genuine person and suddenly he got some unexpected funds from nowehere and he purchased a refirgerator...GOD save ME....inspite of stashing away about 5 Lakhs in his name, having own home and having a life long pension of about 15K per month, my father-in-law is poor.....he begs his son and daughter -in-law for more........yes he is poor not financially but mentally..........

i fail to understand the logic and my husband doesnot want to listen to me....that my father in law inspite of having so many funds, begs us for more and on the other hand, his son-in-law should not give a penny to his parents..............

coming to my mother-in-law, bigger idiot...feels that she is the divine mother descended directly from heaven just to marry off her precious son to as low a person as me....she gets upset when i dont stand up when she enters the room....as if am her slave......she gets irritated if i sleep with her son and wake up with him...i dont understand the logic again, her daughter who is a house wife sleeps from 10 AM till 6 PM and myself being a working woman shouldnt sleep from 10 PM till 7 AM ..............i should be a super woman, ideal Daughter in law, who should wake up by 5 AM, brew coffee for all, cook breakfast, pack lunch, keep their lunch ready, come back from office at 8PM, cook dinner for all, serve them, clean the kitchen and then sleep.......if i miss this time table for any reason, she will bring down the roof and shout at the top of her voice....she will also blackmail her son that, she has been downgraded to a cook in the house (she cooked hardly 3 times during my 1 year stay there) and to the extent that she will dramatically pick up a bottle of phenyl to threaten a suicide. i really wish she does drink a bottle of phenyl .......
And amidst all this, my husband doesnot see anything wrong at all...his mom and sis are the perfect people on earth..they know everything about fashion and advise us about what to wear, where to purchase and at what cost and colour..and if i go about buying anything on my own, either the colour chosen is bad or the rates are too high or the vegetables are not at all tasty..to the extent that the ice-cream that i carry home is too sweet and the dry fruits are tooo dry ......

Last but not the least, my sister-in-law the dirty imp, ghost and a demon of my idiot-in-law family...she happily leaves her husband abroad and spends over 5 months in a year at her mom's place..and i shudnt visit my parents or my parents shudnt visit me even though we reside in the same city. She gets upset at the sight of my parents that she stops eating and my parents in law have to pursuade her to eat and because it is my fault coz of my parents visit upset her, my punishment is that, i shouldnt visit my parents or vice versa during her stay.

again i dont understand the logic....the in-laws of my sis-in-law never cared a damn about her and therefore, she stopped talking to them...and that she is justified as they didnt gift her anything for over a year.......and coming to me...my in-laws gifted me with so many brickbats, so many abusive words...never let me sleep with a peace of mind...to the extent that every festival during my stay of 1 year with them ended up with a silly fight ...like my dad didnt wish their daughter or i insulted her by not conceding to her wish to have a photo with her son.....and i should be happy with all this coz they r divine ...........i started losing weight horribly and was sick more often......and finally

fed up with all this, i just gave up that idiot family and moved out on my own with my husband to a different apartment......then my father-in-law comes into picture again..he is so much in love with his son and daughter-in-law that he used to visit us every weekeend and sneaks out like a female vamp in the daily serials of "k-series"..he never gets enough of what i do with the money (now that i stopped giving him my money and now he gets only his son's share of money...50% of what he had planned wud accrue to him)

And soon after he realised that i saved as much to secure my future and within 5-6 months i will be ready to plan a own home for myself, they started feeling more love for me.....instantly their doors became open for me ....i should start living with them and al their complaints are automatically forgotten..they will hire a maid servant to cook, maid to do the dishes and wash clothes and everything to make me feel more comfortable....

and when i turned down this plan of theirs.....my husband feels that am unreasonable

now that i forced them out of my life..... i observed that am gaining weight and healthy too

thank GOD..am out of that hell now and vow that i will never enter that hell again during my life time......come what may!!!!

Two Day residential Seminar.....

Here comes my view and review on the Two Day residential Seminar conducted by the SIRC jointly with Hyderabad Chapter of the ICSI on 16th & 17th April 2010 at Alankrita Resorts....

First things first..the drawbacks of the programme as i always find so many...the programme was ill-planned..the information about the seminar was sent hardly a week before, the Annual participation scheme members were not sure of any concession (this was later clarified just 20 hours before the seminar), the sponsorship details was not informed properly...

all this mess landed into hardly 25 delegates for the seminar...too less a number compared to the earlier seminar at the same venue...which was attended by over 200 delegates.

Coming to the programme....at the inaugural session, i was called on stage to light the lamp along with Dr Chandratre...(author of over 25 books, 1000 articles, etc etc).....a honour that will remain with me forever.....

post lunch, when the first technical session started, people were dozing off...though the speaker was interesting, the hall was too big and the power supply was very poor. this led into break in the flow of subject to the speaker...and the volume of PA system had to be adjusted constantly to avoid blowing the ear drums of the delegates.

the day closed with a tea break..heard there was a cultural evening..God knows who attended it at 7 PM...out of some 25 delegates...some 10 had left along with me..so probably the cultural evening was attended by the SIRC members only...

the next day had even lesser delegates as most of them lost interest on the first day itself....the first technical session started an hour late..but still, Mr Pasupati kumar, CFO of Delloitte impressed the members with his awesome insight into the subject ....his style of taking through the session was excellent and his session was naturally overshot by 40 minutes...then came Mr M R Gopinath, a PCS from Bangalore..his quick wit and one liners and his constant digs at women made the session live and interesting

the last session was by Mr Vikas Khare...who appeared boring..without any wit or delegate participation..it was one sided talk from the speaker and as the session was running out of time...he had to wind up..probably his entry was at wrong timing, otherwise..the sessionw as excellent and he had made a point to mail his rpesentation to all participants...which is well appreciated.

the seminar came to an end with a awesome lunch.....

AFM 2010

The Annual Fellowship meet (AFM) of the Hyderabad Chapter of the ICSI...a platform where the new committee members are introduced and the past ones are felicitated. i was overjoyed when i got permission to attend the meet . the meet was meant to be attended with family....but somehow, i got to go alone.

the AFM for the year 2010 was organised at Sailing boat club near Tank Bund. the venue was a scenic beauty with Tank bund at the far end....lighting on the necklace road...and the lush green lawn outside the meeting room. i went there with many hopes...expectations to be a part of the fun games there. the room was decorated with loads of balloons, light music at the background..kids running everywhere.......members of the Institute split into groups chit chatting.

the meet was attended by top notch CS including the DHR, PVS, PS Sastry, Av Syamala, Ahalada Rao, S V Suryanarayana, A V Syamala, Jagannatham...etc


Now about the actual programme...if you want to understand the importance of an elevated wooden plank for the artists to perform (also called the stage)...attend this programme....if you want to understand the importance of clarity in PA systems (also called mikes) ..attend this programme...if you want to understand the importance of hosting/ organising ....this programme is a must to attend....why is it sooo impritant?

the lack of stage...really was a big flop...the artists were mixed up with the DJ guys..and the backstage supporters. the audience were confused between the performers and the supporters. the mikes were of poor quality which added to the flop show....the people at the far end the hall were unable to understand or seewhat was going on at the head of the meeting hall.

Now comes the dance show by the students, which was supposed to be the hilarious video of the year (posted by Youtube)...but the performers and audience being on the same plane (without a stage) the dance became a mourning show.. the performers 9who were actually supposed not to give expressions, which is a part of the comedy)) appeared to be dumb people...who move their hands and legs .

the skit by the students, though had imitations from Dharm Paaji and Sunny deol...was flop show again ..coz of poor mike quality and lack of platform. the audience were like commenting..what is happening there?? are they talking to themselves or performing anything??

then comes simple quiz from the host, who was literally inaudible and the kids surrounding him answered all questions by peeping into the questionnaire itself....no point in quiz..the lady accompanying the host was so slow ..that she took her own sweet time to pass on the mike to people who were actually trying to answer....still, they managed to get answers from one or two from audience..surpassing all the kids. The next game was find your partner.....the members were toooo lazy (or disinterested may be) to find their partners from the slips given.....the host had to help each one find their partner..and he had a tough time to gather them on the stage..request them to participate...train them to dance to the music by DJ.....

then comes our new chairman..who has an awesome authoritative voice...to calm the dance floor for the felicitation to happen. the felicitations......was a cake cutting programme....which was surrounded by kids again and other members having a gala time chit chatting with each other. Then there was dinner...which was tasting good...but the space was tooo less to accommodate the people. ..thats all ...after this dinner...i left the meeting...without knowing why i was there.......

37th National Convention of the ICSI- An overview

The convention with over 1000 delegates, Minister of Corporate affairs as invitee, people from various parts of the country….yes it is the Grand 37th National Convention of the ICSI held from 5-7th November 2009 at Hotel Mariott, Hyderabad.

Being a local resident of Hyderabad, I had it easy to locate the venue. There were about 10s of counters for registration of delegates and thanks to Hyderabad Chapter, I had my delegate number that helped in getting the kit within no time. The kit was a beautiful black laptop bag, with pens, a few business cards, a t-shirt with ICSI logo in the front and Bajaj Allianz logo on the back (which was dissented by many) and brouchers from the sponsors. After the long queue at the entrance, I entered the convention hall which was decorated professionally with a big screen for clear view of the happenings on the dais, a balcony to accommodate delegates that wouldnot fit into the convention hall, ICSI banners, sponsorship banners, a big welcome screen behind the dais, etc.

Skipping the minute details of the lighting of the lamp and Council members taking the dais let me get into the happenings straight away. The curtain raiser that gave an insight into the 3-day programme was organized very well. The Awards for best chapter and other categories including moot courts and related stuff were well-organised but the award winners were concentrating more on photographs being taken rather than the big trophy in their hands. The release of convention souvenir, Secretarial standard 10 and other ICSI publications had the Council members showing off their teeth and flashing the publications rather than anything else. The host who announced the names was amateur and a lot shaky. Probably the Hyderabad chapter could have chosen a better host for such an important event.

Mr Salman Khurshid, Minister of Corporate Affairs was the guest for the inaugural session, believe me…he was simply superb in delivering his message to the members. He was crisp and to the point. A politician having such indepth knowledge of the subject along with command over the language is quite unbelievable.

The first technical session on Managing growth in turbulent times had many delegates dozing off while Mr Pramanik was delivering his message. But, Ravi Kashtia and Jim Brady were interesting speakers. They highlighted on ways and means to manage growth with their slight humour.

I don’t prefer going into the nitty gritty of each technical session, but each speaker was excellent and an expert in his subject. Especially the dynamism and sharpness exhibited by Ms Vijaya, CS of Bharati Airtel is worth mentioning.

I didn’t prefer to stay back for the cultural evening and dinner that followed.

The second day of the convention started off with 5K run for a cause…well, I didn’t participate again. After that, a special breakfast for women was organized. This had 3 speakers; one from Administrative wing of the AP govt, one industrialist and another was a founder of well known social welfare organization. We even had the first Woman president of the ICSI and First ICSI-SIRC chairperson with us. Each one had different insights into the women problems, ways and means to tackle them. The bottom line was to have a good networking circle amongst ourselves to better our personal lives.

The open house session with the central council members was good. Many of the CS had different sorts of complaints on the response of the Ministry or the council or the student services. There were also many satires on the working of the ICSI which were intelligently handled by the Prez ICSI

Thereafter, the technical sessions are as usual boring stuff which had many delegates going out for networking or discussing business and some were dozing off, myself being one of them.

This was followed by a brief lunch that did not have soup but had plenty of fruit salads and other goodies. There was separate section for non vegetarians too.

The trip to Ramoji film city (RFC) was a chaos with so many delegates ending up into confusion whether to get into a bus or not. The entry at RFC was organized well, the stunt show was over crowded and so was the Action theatre. The tour through the RFC was excellent with an enthusiastic guide explaining each and every thing in detail with a pinch of wit. Most of us felt that the time was insufficient as it started to get dark by 6 PM itself.

The hot coffee on one hand, cookies on the other with the serene blue sky overhead and neatly towed green grass underneath was a superb experience. At 7 PM the cultural show began under the blue sky. There were dance performances, one minute game shows for the participants, comedy stints by well known comedians and few gymnastic wonders by the RFC people.

Dinner was also served simultaneously and this has a separate section for Jain food too. As dinner was coming to an end, it started to rain cats and dogs and the pleasant evening was forcibly wound up at 8.30 which would have been at 10 PM otherwise.

The day 3 of the convention began with a breakout session on M&A under competition regime and Tax reforms simultaneously in two different halls. The speakers for M&A were wittier than others of their genre and the delegates had an excellent time in understanding the concept.

This was followed by an interactive session with the Jt Secretary to MCA, a dynamic lady with elegance and intelligent charm of her own. She coordinated the session, took all the inputs from the delegates and briefed the members on the happenings at the ministry, the efforts put in by them and the like. Overall, the session was lively and highly useful for the members present.

The Valedictory session was the most emotional part as it was the point where all the delegates part away with a promise to meet at the next National Convention. The Prez ICSI gave a brief overview of the 3-day convention, thanked the delegates, organizers and all those who made the convention a grand success. He also highlighted the records that were broken at the convention. The 3-day convention came to an end with a special lunch.

LAZY BANKING

In 2005 managerial autonomy to PSBs by leaving assorted decisions (acquisitions, closure of unviable branches, opening overseas offices, human resource policies) to boards was highlighted as a part of de-regulation of the Government. The buzzwords then were "competition, corporate governance, and independent directors". But the buzzwords now are "government control" and government is not to be confused with governance.

The nationalization of banks in 1969 was aimed t improve credit delivery, expand the areas of banking in rural India and encourage the small-scale industries. Nationalisation was introduced to further regulate the Banking industry apart from the RBI and the Banking Regulations

Apart from Nationalising Banks, restrictions were imposed on composition of boards of directors and on bank lending to units that directors were interested in. But then, credit delivery or populism of the late 1960s and early 1970s was only one part of the jigsaw. This statement can be observed from the preamble to the Banking Companies Act of 1970 wherein it is stated that "an Act to provide for the acquisition and transfer of the undertakings of certain banking companies, …….. in order to control the heights of the economy …………….and for matters connected therewith or incidental thereto." The key word was 'control', but not regulation. Opposition to privatisation of public sector enterprises isn't about strategic sectors and market failure. It is about losing control. The heights of the economy became the depths.

The fiasco of nationalization was extended and the fall out was seen in September 2006 that wrought havoc in many ways. First, since government equity was declining and public shareholding increasing, the number of independent directors was slashed. Second, possibility of nomination from SEBI, NABARD and public financial institutions was removed. Third, the number of full-time directors was doubled (from two to four). Fourth, "excess" directors were made to retire, on a first-in first-out criterion, that is, on basis of seniority. Fifth, SEBI'S attempt to push corporate governance was a problem, since SEBI'S suggested draft amendment to Clause 49 of the Listing Agreement proposed that directors nominated by government or public financial institutions wouldn't be counted as independent directors.

The expression “lazy banking” was coined a few years ago to describe the “Public Sector Banks” and their way of banking. The desks at Public Sector Banks are strewn with papers, bulletins and what not…and every one seems to know what exactly is demanded of them. But again, this did not change anything not even the credit delivery in the least.

The nomination of Independent Directors has turned out to be a matter of graft and reward and their expertise never entered the rulebooks of the Banking industry. Probably a CRAZY Banking approach to the banking formulation will wipe away the lazy Banking in India.

The Lazy banking has resulted in corporate India generating income without availing the Bank Credit which is a severe indictment of Indian banks and this inertia is a symptom of deeper malice.

During 1998-2003, the Banks ignored Lending to commercial sector and the funds were extensively invested in Government Bonds. Ironically, this strategy did not harm banks. The cut in interest rates by the RBI in 1999 the Banks that invested in Bonds profited. The Banking sector earned huge profits irrespective of whether the profiteering Bank was a weak one or otherwise. These profits were utilized to the “cleaning of Bank’s Balance sheets “popularly known as wiping off Bad debts and raising of capital.

On the other hand, denial of credit to industrial sector worsened the small players in the market. In other words, our banks were more comfortable funding the fiscal deficit rather than private commercial activity. Gratuitous perversity in Indian banks is observed and that is coined as the Lazy banking.

The era of Lazy banking can also be attributed to the Industrial recession that created a fever amongst the Bankers about CBI raids for wrong credits.

The worst days of lazy banking are now over. Over the past, because of the economic recovery, credit to industry has been growing considerably. The focus has shifted back to loan growth. Most of the demand till now has come from working capital. And the bond market is no longer that attractive - bond prices have plunged and bond issuance is bound to suffer as the government cuts its fiscal deficit.

Yet, the recent episode of lazy banking throws up many hard questions. These questions should become part of the current debate on banking reform, which is hopelessly stuck on whether foreign capital should be allowed into the Indian banking industry. The good health of Indian banks is worthy of celebration. But what if this health has been achieved by not lending to the economy?

Bank nationalisation has been demonised for a number of valid reasons. Politicians used the banking system to dish out loans to favoured interest groups, and directly contributed to the huge bad loan problem of later decades. Capital was misallocated. But what is not adequately appreciated is the fact that the policy of bank nationalisation was actually a success in terms of its key goal - spreading the banking habit in the country and providing credit to small companies and farmers.

The first round of banking reforms in 1992 was partly responsible for the credit squeeze of the past five years, especially because of capital adequacy norms that made lending to the government more attractive than before. While Indian banks will have to deal with many issues ranging from capital adequacy to globalisation - they will also have to ensure that small companies and farmers, who form the bedrock of the Indian economy in terms of output, employment and exports, are not starved of credit. And this lending should be done in a way that earns profits.

Fortune favours the quick adapter. The year 2006-07 was challenging in several ways. Treasury income, their mainstay in the earlier part of the decade, went down appreciably as bond prices sagged and yields rose under intensifying demand for money, even as the government put far less paper in the market. With ‘lazy banking’ options closed, commercial lending was all the rage, but here too, there were the RBI-delivered shocks—higher risk weightages in creamy sectors like housing loans, apart from two CRR hikes in rough conjunction with repo and reverse repo rate hikes aimed at vacuuming liquidity and preventing froth.

But with the economy in boom, banks were not short of business—not even depositors, it turns out, though this took a tax-sop nudge from the finance ministry. The funds crunch scare did not quite materialise.

The Reserve Bank has also been periodically issuing guidelines on public grievance redressal mechanism in banks, including constitution of customer service centers. Based on the recommendations of a Committee on Procedures and Performance Audit of Public Services for ensuring improvements in quality of service rendered, banks were advised to constitute a Customer Service Committee of the Board. In the Reserve Bank, the Customer Service Department has recently been constituted to, inter alia, serve as the interface between customers and banks.
On a broader plane, the Reserve Bank has been adopting a two-pronged strategy to generate greater awareness and expand the reach of banking services – which can be termed as empowerment and protection. As regards the former, financial inclusion is the first stage of the process. This is strengthened by inculcating awareness among the masses through financial education. Concurrently, an advisory mechanism in the form of credit counseling is being encouraged to help distressed borrowers and bring them within the fold of formal finance. As regards protection, a Banking Codes and Standards Board of India has been established recently to ensure a comprehensive code of conduct for minimum standards of banking services to be offered by banks. The revised Banking Ombudsman Scheme has been put in place to redress deficiencies in customer service by banks.

The economy is presently in a phase of rapidly rising incomes, rural and urban, arising from an expansion of extant economic activities as well as the creation of new activities. Corporate profitability has exhibited sustainable trends and consumer incomes are increasing rapidly, riding on the growth momentum. All of these developments suggest that the demand for financial services, both for savings as well as production purposes, will be greater than has been the case in the past, and there will be many new entrants in need of financial services who have not hitherto been served. At present our financial depth is much lower than that of other Asian countries, though it has picked up in the recent past. While there is evidence of an increase in financial deepening, particularly during the present decade, the increase in the breadth and coverage of formal finance has been less than adequate. Deepening the financial system and widening its reach is crucial for both accelerating growth and for equitable distribution, given the present stage of development of our country.

There has been a burst of entrepreneurship across the country, spanning rural, semi-urban and urban areas. This has to be nurtured and financed. It is only through growth of enterprises across all sizes that competition will be fostered. A small entrepreneur today will be a big entrepreneur tomorrow, and might well become a multinational enterprise eventually if given the comfort of financial support. But we also have to understand that there will be failures as well as successes. Banks will therefore have to tone up their risk assessment and risk management capacities, and provide for these failures as part of their risk management. Despite the risk, financing of first time entrepreneurs is a must for financial inclusion and growth.

The Parliament passed the Credit Information Bureau Act last year and the guidelines for its implementation will be released shortly. This should enable, over time, the availability of credit histories of both individuals and small businesses, which will help significantly in reducing transactions and information costs for banks. It will also help in spreading the credit culture among borrowers. It should help banks greatly in assessing and managing risk at low cost.

As poverty levels decline and households have greater levels of discretionary incomes, they will be first time financial savers. They will, therefore, need to have easy access to formal financial systems to get into the banking habit. Banks will need to innovate and devise newer methods of including such customers into their fold. The importance of 'no-frills' account and expanding the range of identity documents that is acceptable to open an account without sacrificing objectivity of the process in this milieu can never be over-emphasised. Banks will need to go to their customers, rather than the other way around.
The micro-credit and the Self Help Group movements are in their infancy but are gathering force. More innovation in the form of business facilitators and correspondents will be needed for banks to increase their outreach for banks to ensure financial inclusion. New entrants to the banking system need households at their doorstep.

To conclude, with increasing liberalisation and higher economic growth, the role of banking sector is poised to increase in the financing pattern of economic activities within the country. To meet the growing credit demand, the banks need to mobilise resources from a wider deposit base and extend credit to activities hitherto not financed by banks. The trend of increasing commercialisation of agriculture and rural activities should generate greener pastures, and banks should examine the benefits of increasing penetration therein. Financial inclusion will strengthen financial deepening and provide resources to the banks to expand credit delivery.

Source of Capital - The Private Equity

The investment by Private equity partners in the Indian corporate sector is gaining momentum in spite of the turbulent economic scenario. Though in its nascent stages, Private Equity (PE) investment has assumed the status of mainstream source of capital. While India Inc is gearing to share its financial stake in the otherwise family-run enterprises, analysts raise fears that the quick exit of PE partners from these investments would leave companies high and dry.

Private equity investment was highly opposed in the 1970’s where the business tycoons developed the flip by taking over a company, attack wages and jobs to ‘cut away fat’, then sell back to the market in a three to five year cycle. The most common use of this system for profit stems where management teams buy out publicly listed companies and take them off the stock market as private entities.

The practice reached its zenith in the 80s when major takeovers were attempted by firms for their practice of taking healthy companies, selling their assets, firing much of the workforce and then selling back a shell to the public markets. The Private Equity market died down in the 90s, as mega-mergers placed many of the big players beyond the reach of even major private equity groups and confidence dimmed in the risks of investing during an economic downturn.

However in the last 4-5 years, where several major funds buy in to reach for larger targets, the economy has witnessed some of the biggest companies in the world targeted by the PE players.

PE investments have played a visibly positive role in generating employment opportunities and especially BPOs have benefited tremendously as PEs put their money in these ventures. PE can also drive a company into good governance, bringing in transparency and professionalism across industry. The PE partners usually induct their representative at Board level to assist the management in executing the strategies. They also enable entrepreneurs achieve success that may otherwise have been beyond reach by providing resources over and above money.

The broad framework of PE deal:

1. Time Frame: Though time is a factor of flexibility, a typical PE transaction takes roughly about 3 months to conclude.
2. Monetary Aspects: Money can be availed through any other form of funding. But, money alone cannot catalyse the working of the organisation.
3. Mutual Interest: The PE deal has to be aligned with the interest of the Promoter, execution capability, mutual comfort and the like.
4. End Utility: The PE partners should be ensured of Performance linked convertible to bridge the expectation gap, if any.
5. Success Factor: Success of PE Fund is dependent on success of the venture. PE funds make sure that their star entrepreneur are helped with all the resources and learning which can be mustered by the fund to help him realise his dream.
6. Agreement: Shareholders and Subscription agreement is the crux of a PE deal and one must ensure the inclusion of the following:
• Minority protection rights
• Rights and obligations of each party
• Force majeure
• Exit proviso
• Tag along rights, etc
7. Exit of PE partner: The PE partners prefer IPO as the exit route but other exit routes such as trade sale are often practiced. This is because, PE funded companies enjoy higher PE multiple at listing, than their contemporary non PE funded companies.


Conclusion:

Essentially, PE funds raise money from high net worth individuals, financial institutions, etc. for a period of seven-ten years and then invest in opportunities as and when they arise, either in early-stage, maturing or even public companies. The work involves of course, valuing the companies and deciding how much of the company stake is actually worth, what the company’s growth prospects are, etc. Structuring the transactions for tax-efficiency and industry-specific reasons is also part of the job. Post-stake taking, day-to-day monitoring and growth plans are monitored by the fund, with a senior director taking a seat on the company’s board. Since the target is also to exit the investment in a few years and return money to investors, the deal teams also constantly monitor the capital markets for suitable times to do an Initial Public Offering or find a strategic investor to sell to.