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Treasury Management

November' 06

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Articles
   
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Forex Reserves Perspectives
The Treasurers' Dilemma
The Powerhouses of Global Economy: India and China
Corporate Debt Restructuring : A New Lease of Life for Ailing Corporates
Commodity Derivatives :The Need for Energy Risk Management in Asia
FDI Inflows to India : Some Reflections
Risk Management at Yes Bank
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Forex Reserves Perspectives

- - K Seethapathi, Kalyan J Sandilya

Forex reserves in the developing countries have raised fourfold, since 1990, to almost 30% of their GDP amounting to eight months of their import bills, yet they remain less than 5% of the developed countries. This continuous accumulation provides greater liquidity,transparency and some protection against financial crisis. This article discusses the relevant issues.

Article Price : Rs.50

The Treasurers' Dilemma

- - Anbu T Palanikumar

With an exciting range of markets to participate in, the treasurer is increasingly finding it difficult to maximize his returns on investments. The article provides the treasurers' dilemma in such a maze of financial market with suitable illustrations.

Article Price : Rs.50

The Powerhouses of Global Economy: India and China

- - Anil Kumar Goyal ,Elizabeth Renju Koshy

The global economy seems to be changing at a faster rate than ever before. Some of the changes like rapid growth in China and India and their growing economic freedom proved to be at a faster pace, when compared with the other countries. These changes resulted mainly due to high oil prices and global imbalances. The article deals with world economy and its growth prospects.

Article Price : Rs.50

Corporate Debt Restructuring : A New Lease of Life for Ailing Corporates

- - K Mallikarjunan

Corporate Debt Restructuring is aimed at rescuing those corporates, which without their fault have sunk into the quicksand of debt. Any suitable restructuring program may put the corporates back on the right financial track, provided the causes and remedies of the corporate ills have been diagnosed with clinical precision. The article deals with the related issues.

Article Price : Rs.50

Commodity Derivatives :The Need for Energy Risk Management in Asia

- - Sharon K Jose

Crude oil price exhibits a high degree of volatility which significantly varies from time to time. In the month of May 2006, the crude oil prices exceeded $70 per barrel in response to tight markets and uncertainty over the energy securities market. The article discusses energy risk-based hedging model for crude oil price risk management.

Article Price : Rs.50

FDI Inflows to India : Some Reflections

- - Badar Alam Iqbal

The inflow of Foreign Direct Investment (FDI) into India has boosted the once ailing economy, but of late, severe political pressure is acting as a hindrance for its smooth inflow. This article discusses the related critical issues.

Article Price : Rs.50

Foreign Exchange Reserves : New Realities and Options

- - Dr. YV Reddy Governor, Reserve Bank of India

Risk Management at Yes Bank

- - S Neeraj

Regulators are laying increasing importance on risk management in banks. This may be an additional responsibility on the management, but it will aid them to keep a check on different risks, thereby, improving the performance of the bank. The following case study deals with the procedures followed at Yes Bank to manage the risks

Article Price : Rs.50

Global Executive Summaries

  • Overseas Banks Move to Attract more SMEs
    Full Text: www.xinhuanet.com September 25, 2006.

  • Investors Turning Toward Bonds Again
    Full Text: www.charlotte.com September 21, 2006.

  • Forex Reserve Growth may be Risky for Emerging MarketsBIS
    Full Text: www.reuters.com September 22, 2006.

  • Commodities' Downturn could Cause Real Pain
    Full Text: www.orlandosentinel.com Sept. 24, 2006.

  • Credit Crunch Creates Feeding Frenzy for Loan Sharks
    Full Text: www.gov.tw September 25, 2006.

  • Lenders Gear up for Competition Over Private Banking
    Full Text: www.english.people.com.cn Sept. 26, 2006.

Ticker

  • Global Market Changes likely to Impact the Indian Economy
    Full Text: www.financialexpress.com, September 19, 2006.

  • Forex Reserves: RBI for Low-risk Investments
    Full Text: www.hindubusinessline.com, September 19, 2006.

  • Sangli Bank Sees Withdrawals
    Full Text: www.businessstandard.com , September 20, 2006.

  • Trading Limits may Curb Futures Growth
    Full Text: www.economictimes.com, August 23, 2006.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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