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April '09
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The Satyam Fiasco
Dollar Hegemony : The Beginning of an End?
Vice Stocks : Losing Luster?
Straight Through Processing in the Indian Capital Markets
Best Funds to Invest
Currency Futures : Trends of Today and Forecasting of Tomorrow
The Crude Reality of Crude Oil
Indian Energy Exchange : Bridging the Power Gap
SPACs : Growing Prominence
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The Satyam Fiasco

-- VDMV Lakshmi and Alpa Sethia

The Satyam scandal has shaken the confidence of the owners and the stakeholders of the company across the globe. The investors even suspected the due diligence exercised by all the responsible entities associated with this company. Hence there is an immediate need to revise the corporate governance practices in India.

Article Price : Rs.50

Dollar Hegemony : The Beginning of an End?

-- Pradeep Kumar Gupta

The US dollar has continued to remain the world's premier currency since the 1970s. This article argues that this dollar `hegemony' has been exploited by the US which is an unhealthy trend. It also examines if the current recession will pave way to end the dollar hegemony.

Vice Stocks : Losing Luster?

-- PS Sarath Chandra

Vice stocks, which are often considered as being recession-proof, are not living up to their reputation this time.

Straight Through Processing in the Indian Capital Markets

-- Vishal Mainkar

Indian capital markets have undergone many changes during the last decade. With changes happening in quick succession SEBI has been putting all its efforts to increase the efficiency and transparency of the markets. The exponential growth in trading volumes and increased settlement risks have pushed the need for Straight Through Processing making it a pre-requisite for the smooth functioning of the markets.

Best Funds to Invest

-- Rajni Sofat and Preeti Hiro

As we move into 2009, the level of pessimism among the investors is deepening and most expect it to be another tough year. However with the stimulus being given by the governments across the world, the investors must ensure to make the right investment choice now. This article puts forth mutual funds as an ideal choice and compares the performance of various funds.

Currency Futures : Trends of Today and Forecasting of Tomorrow

-- Sumeet Gupta

In the present integrated business environment, entities irrespective of the nature of their business are impacted by currency risk. Currency futures have been introduced in the Indian markets to enable the businesses to hedge their foreign exchange risks. This article analyzes the current trends of the currency futures segment in India and forecasts its growth.

The Crude Reality of Crude Oil

-- Puja Mehra

The price of crude oil touched a peak of $147 per barrel in mid-2008 and sent jitters across the world, resulting in high inflation and higher interest rates. However, from September 2008 the prices have dipped and have hovered around $50-$60 range due to the decline in the global demand and the global credit crisis. This article analyzes the factors responsible for the changes in the crude oil prices. It also predicts the future movement of the oil prices.

Indian Energy Exchange : Bridging the Power Gap

-- Y Bala Bharathi, Sanjoy De and GP Mrudhula

With the launch of the first power bourse, Indian Energy Exchange, India has entered into the elite club of developed nations that possess a power exchange.

SPACs : Growing Prominence

-- Vajjhala Ratna

In the present volatile financial market conditions when access to liquidity is limited, special investment vehicles called SPACs are intensifying the competition for deals in the M&A landscape.

Macroscan
  • The Collapse of General Motors
    Full Text: www.wsws.org
  • The Job Crisis
    Full Text: www.economist.com
  • Household Net Worth Sinks $11.2 tn
    Full Text: www.money.cnn.com
  • The Impact of Global Financial Crisis on Sovereign Wealth Funds
    Full Text: www.knowledge.wharton.upenn.edu

 
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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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