december finalyst2011

Economy F!NAL$T December 2011

Symbiosis Centre for Management and Human Resource Development Page 1

About SCMHRD



About SCMHRD

Leadership-Entrepreneurship B-School

SCMHRD was established in 1993. Ever since its inception, SCMHRD has strived to bring Indian ethos, Management

concepts and technological advances together in an effort to redefine the management paradigm in the new age.

SCMHRD has successfully pioneered the implementation of Kaizen on campus. The practice helps in keeping the

campus clean and gives the students a feeling of ownership, inculcating in them a feeling of belonging and

camaraderie. The SCMHRD culture provides the students an environment that allows them to think and reflect, to

explore and express.

Vision

To become a Centre of Excellence for Global leadership and entrepreneurship, the standards of which others are

measured by.

Mission

To create leaders and entrepreneurs of tomorrow, their dedication to excellence, absolute. SCMHRD was established

in 1993. Ever since its inception, SCMHRD has strived to bring Indian ethos, Management concepts and technological

advances together in an effort to redefine the management paradigm in the new age.

Economy F!NAL$T Decemb

Symbiosis Centre for Management and Human Resource Development

From the Editor

Dear Readers,

The world has changed a lot from the days of Bretton Woods. We need to catch up

Euro zone's debt crisis is quivering the global economy and breakup of currency zone can no longer be ruled out.

America's jobless rate passes 10%. Not so pretty picture of India shows Indian rupee hitting a historic low of

against a US Dollar. Fear of inflation is flaming up as oil imports become costlier. SBI credit rating downgrade by

Moody's indicates volatility and uncertain conditions.

Other important tidings in financial world are drawing the curtains on administer

interest rate on saving accounts. RBI also decided to reduce the validity of cheques and bank drafts from present 6

months to 3 months beginning next fiscal year.

Does not quench your news thirst?

Read our December e-issue which features drawing parallels bet

an interesting read. In this issue we scratch the controversial topic of black box trading. Imagine the robots taking

over the world! However, the cream of the pi

Other riveting articles include Financial Inclusion and where India is heading.

If this smorgasbord of articles proves informative and insightful, press the 'Like' button on 'Finance Club at

page. We would eagerly wait for your valuable suggestions and feedback. We also seek your support and zeal for the

upcoming Research Seminar on Commodity Market in association with MCX and FMC on 18th Feb'12 at Mumbai.

Happy Reading!!

Inside the Issue

Where is our Economy heading?

Crossword

Black Box in the Financial Market

Greece Debt Crisis: Should India Reflect?

Finalyst Debate: Should Kingfisher be bailed out by Government?

Financial Inclusion: Dream yet to be Realised

Bush vs. Obama: The Mighty vs. the Charisma

The Beleaguered Rupee- still bearish?



The world has changed a lot from the days of Bretton Woods. We need to catch up too.


America's jobless rate passes 10%. Not so pretty picture of India shows Indian rupee hitting a historic low of


Moody's indicates volatility and uncertain conditions.

Other important tidings in financial world are drawing the curtains on administered lending rates i.e. deregulation of


months to 3 months beginning next fiscal year.

issue which features drawing parallels between Greece and India. Bush


over the world! However, the cream of the pie is debate on whether the government should bail out Kingfisher.

Other riveting articles include Financial Inclusion and where India is heading.

If this smorgasbord of articles proves informative and insightful, press the 'Like' button on 'Finance Club at




Finalyst Debate: Should Kingfisher be bailed out by Government?

ream yet to be Realised

Charismatic




America's jobless rate passes 10%. Not so pretty picture of India shows Indian rupee hitting a historic low of 54.19


ed lending rates i.e. deregulation of


ween Greece and India. Bush vs. Obama is definitely


e is debate on whether the government should bail out Kingfisher.

If this smorgasbord of articles proves informative and insightful, press the 'Like' button on 'Finance Club at SCMHRD'



4

6

7

10

14

16

18

21



Where is our Economy Heading?

20 years ago, by breaking government control over

the economy, opening up Indian markets to foreign

investment, easing trade, devaluing the rupee, Dr

Manmohan Singh dismantled, in one go, the walls

between the sluggish, protected, conserved economy

of socialist India and the rest of the world. "I do not

minimize the difficulties that lie ahead on the long and

arduous journey on which we have embarked," Singh

said at the conclusion of his speech. "But as Victor

Hugo once said, 'No power on Earth can stop an idea

whose time has come.' I suggest to this August House

that the emergence of India as a major economic

power in the world happens to be one such idea."

While much has been achieved in 20 years, unfinished

agenda is huge.

While we celebrate 20 years of liberalization of

economy, our economy is going through some

troubled times. Recently, Moody's downgraded the

entire Indian banking system outlook from 'stable' to

'negative' citing the slowing of economy and an

increase in nonperforming assets (NPAs). Earlier in

September, it downgraded India's largest public and

most trusted nationalized bank SBI by one notch over

deteriorating capital ratio and poor asset quality.

Inflation figures have rocketed to double digits, with

food inflation topping at 12.21% in the last week of

October. Fuel prices have been hiked twice in the last

two months. Rupee is depreciating continuously,

although it helps exports boom. The political drama in

Italy and Greece is nearing doom for Euro and sending




breaking government control over

the economy, opening up Indian markets to foreign

investment, easing trade, devaluing the rupee, Dr

Manmohan Singh dismantled, in one go, the walls

between the sluggish, protected, conserved economy

he rest of the world. "I do not

minimize the difficulties that lie ahead on the long and

arduous journey on which we have embarked," Singh

said at the conclusion of his speech. "But as Victor

Hugo once said, 'No power on Earth can stop an idea

as come.' I suggest to this August House

that the emergence of India as a major economic

power in the world happens to be one such idea."

While much has been achieved in 20 years, unfinished

While we celebrate 20 years of liberalization of Indian

economy, our economy is going through some

troubled times. Recently, Moody's downgraded the

entire Indian banking system outlook from 'stable' to

'negative' citing the slowing of economy and an

assets (NPAs). Earlier in

September, it downgraded India's largest public and

most trusted nationalized bank SBI by one notch over

deteriorating capital ratio and poor asset quality.

Inflation figures have rocketed to double digits, with

pping at 12.21% in the last week of

October. Fuel prices have been hiked twice in the last

two months. Rupee is depreciating continuously,

although it helps exports boom. The political drama in

Italy and Greece is nearing doom for Euro and sending

panic throughout the world, including India. RBI raised

interest rates for the 13th time since early 2010 to

tackle inflation, which unfortunately is like a wild

elephant out on a rampage to disrupt the entire

economic balance. The Index of Industrial Production

hit a low of 1.9% and is continuously decreasing from

the past three months. Add to these woes, the policy

paralysis of Government and you find our country is in

more dire state. Is the ground condition so bad? Let

us analyze the situation and try to antici

future growth of our economy.

Moody's downgraded the Indian banks as it warned of

slowing growth hitting asset quality, capitalization and

profitability. However Standard and Poor contrasted

the views of Moody's and upgraded the Indian

banking sector due to robustness of economy and

control over monetary policies. "India's banking

system has a high level of stable, core customer

deposits, which limit dependence on external

borrowing. The government is likely to provide timely

financial support to the banking system, if needed," it

said. But the point of concern in the balance sheet of

banks is the increase in Non Performing Assets (NPA)

up to 5 lakh crores approximately. While the private

sector banks have decreased lending due to the

economic downturn, public sector banks have

continued their aggressive lending as a deliberate

policy choice; of opting to keep bank lending going

(against commercial sense) in the hope that it would

help shore up economic growth. There are some




roughout the world, including India. RBI raised

interest rates for the 13th time since early 2010 to

tackle inflation, which unfortunately is like a wild

elephant out on a rampage to disrupt the entire

economic balance. The Index of Industrial Production

it a low of 1.9% and is continuously decreasing from

the past three months. Add to these woes, the policy

paralysis of Government and you find our country is in

more dire state. Is the ground condition so bad? Let

us analyze the situation and try to anticipate the

future growth of our economy.

Moody's downgraded the Indian banks as it warned of

slowing growth hitting asset quality, capitalization and

profitability. However Standard and Poor contrasted

the views of Moody's and upgraded the Indian

tor due to robustness of economy and

control over monetary policies. "India's banking

system has a high level of stable, core customer

deposits, which limit dependence on external

borrowing. The government is likely to provide timely

he banking system, if needed," it

said. But the point of concern in the balance sheet of

banks is the increase in Non Performing Assets (NPA)

up to 5 lakh crores approximately. While the private

sector banks have decreased lending due to the

urn, public sector banks have

continued their aggressive lending as a deliberate

policy choice; of opting to keep bank lending going

(against commercial sense) in the hope that it would

help shore up economic growth. There are some

Editorial F!NAL$T December 2011


groups of people who believe that the management

of all banks has been manipulating the figures of bad

debts in a close nexus with the officials of RBI, while

the banks defend themselves saying that the funds

have been given for infrastructure development

projects especially power (state electricity boards)

and realty sector and the money would return back

and so they are not included in bad debts calculations.

Also the banks feel that higher interest rates and slow

revenue growth are major reasons for rising bad

loans.

But the biggest hit to banks' bottom lines could come

from the large corporations like Kingfisher Airlines,

which owes banks approximately Rs.7000 crores and

is on the verge of bankruptcy.

Another big concern for the government is the trade

off between inflation and interest rates. They are

impacting key investment decisions, since they have a

great impact on the returns on the investment. With

the rising interest rates in India, people have low

tendency to borrow and this affects the supply of

money. High interest rates encourage people to save

their money and hence growth is affected as the flow

of money in the market reduces. India's WPI inflation

rose to 9.73% with food inflation topping the chart.

RBI has tried to tame inflation by increasing interest

rates to stabilize the national economy. So far they

have not succeeded in achieving low inflation, but the

growth has slowed down considerably forcing the

government to revise the estimated GDP growth from

8-9% to 7.5%.

The rupee is depreciating due to large demand of

dollar in the market and in spite of RBI pumping

approximately 700 million dollars. But according to

CRISIL research, rupee would appreciate once foreign

investments start coming in by the end of financial

year. The formation of new governments in Italy and

Greece is giving a ray of hope for the future of Euro

and the world as a whole gave thumbs up to the new

formation for reviving their economies. Government

is to be blamed the most for the ongoing crisis (if we

can say so) for the lack of powerful measures and

many top industrialists, in a recently completed Indian

Economic Summit, concluded that what the country

needed was quicker decisions and better policy-

making. India is growing younger, and its population

wants things faster and better.

While on the positive side, normal monsoons, good

sowing and robust estimates of Kharif production

have led us to revise the agricultural GDP forecast for

2011-12 to 3.2% from 2.7%. Also the impact of US

debt crisis and Euro zone crisis was least felt in our

country due to proper controls and policies in place.

But still a lot has to be done and we expect that as the

general elections come closer, the government would

take good policy measures for the development of our

economy.

Ravi Matalia

MBA I



Across

1. An international bank rating system (1,1,1,1,1)

2. A worldwide financial messaging network

which exchanges messages between banks

and other financial institutions (1,1,1,1,1)

3. Immediate or cancel order (1,1,1)

4. A price pattern in candlestick charting that

occurs when a security trades significantly

lower than its opening, but rallies later in the

day to close either above or close to its

opening price (6)

5. Loans made by a bank or finance company, on

which repayments or interest payments are

not being made on time (1,1,1)

6. The account a correspondent bank, usually

U.S. or UK, holds on behalf of a foreign bank

(6)

7. A measure of the volatility, or systematic risk,

of a security or a portfolio in comparison to

the market as a whole (4)

al F!NAL$T December 2


Crossword

An international bank rating system (1,1,1,1,1)

A worldwide financial messaging network

which exchanges messages between banks

and other financial institutions (1,1,1,1,1)

Immediate or cancel order (1,1,1)

A price pattern in candlestick charting that

occurs when a security trades significantly

lower than its opening, but rallies later in the

day to close either above or close to its

finance company, on

which repayments or interest payments are

The account a correspondent bank, usually

U.S. or UK, holds on behalf of a foreign bank

A measure of the volatility, or systematic risk,

tfolio in comparison to

8. An investment fund traded on stock

exchanges just like stocks (1,1,1)

9. The second largest reserve currency in the

world after USD (4)

10. A fee or charge assessed to an investor for

withdrawing money prior to a

stipulated date (4,3)

Down

1. First country to issue currency (5)

2. Former MD of Mckinsey & Company who was

arrested in 2011 by FBI on insider trading

charges (5,5)

3. The average interest rate that leading banks in

London charge when lending to other

(1,1,1,1,1)

4. An unethical practice employed by some

brokers to increase their commissions by

excessively trading in a client's account (8)

5. A decentralized market of securities not listed

on an exchange where market participants

trade over the telephon

network instead of a physical trading floor

(1,1,1,6)

6. Founded by Anil Agarwal in 1976, this

company was in news due to its deal with

Cairn India (7)

7. Online trading system of BSE (1,1,1,1)

8. Currency that a government has declared to

be legal tender, despite the fact that it has no

intrinsic value and is not backed by reserves

(4,5)



An investment fund traded on stock

exchanges just like stocks (1,1,1)

The second largest reserve currency in the

world after USD (4)

A fee or charge assessed to an investor for

withdrawing money prior to a previously

stipulated date (4,3)

First country to issue currency (5)

Former MD of Mckinsey & Company who was

arrested in 2011 by FBI on insider trading

The average interest rate that leading banks in

London charge when lending to other banks

An unethical practice employed by some

brokers to increase their commissions by

excessively trading in a client's account (8)

A decentralized market of securities not listed

on an exchange where market participants

trade over the telephone or electronic

network instead of a physical trading floor

Founded by Anil Agarwal in 1976, this

company was in news due to its deal with

Online trading system of BSE (1,1,1,1)

Currency that a government has declared to

tender, despite the fact that it has no

intrinsic value and is not backed by reserves



Black Box in Financial Market

Unlike in an airplane, where a Black Box is used to

determine the reasons of failure, the Black Box of

stock markets is said to be in some way a contributor

to their fall. Black Box Trading is said to be a major

contributor for the famous "flash crash of 2

2010 when 9% of the US market (Dow Jones)

strangely disappeared in 5 minutes without anyone

knowing as to what actually happened.

Black Box Trading System also called Algorithmic

Trading or Robot Trading is a system in which

investment strategies are determined by powerful

computer algorithms rather than by traditional stock

selection techniques or methods such as company's

past performance, current market position, future

plans, management, etc. These days computers are

capable of processing huge volumes of data in fraction

of a second and identify trends in a market. This has

helped some funds to effectively delegate trading

decisions pertaining to the timing of execution of the

order, price and the quantity; to the black boxes

which they have created. These programmed

computers seize upon temporary trading patterns

rather than analyzing the underlying companies thus

making markets more volatile.

And this is what is exactly happening. Black box

traders depend on these programs running on super

fast computers which place thousands of buy and sell

orders per second to exploit the short

opportunities which keep on arising in the market and

which are extremely difficult for a human to cash on.



Black Box in Financial Market

Unlike in an airplane, where a Black Box is used to

determine the reasons of failure, the Black Box of

stock markets is said to be in some way a contributor

. Black Box Trading is said to be a major

contributor for the famous "flash crash of 2:45" in

2010 when 9% of the US market (Dow Jones)

strangely disappeared in 5 minutes without anyone

Black Box Trading System also called Algorithmic

Trading is a system in which

are determined by powerful

computer algorithms rather than by traditional stock-

selection techniques or methods such as company's

past performance, current market position, future

computers are

e volumes of data in fraction

of a second and identify trends in a market. This has

helped some funds to effectively delegate trading

decisions pertaining to the timing of execution of the

order, price and the quantity; to the black boxes

reated. These programmed

computers seize upon temporary trading patterns

rather than analyzing the underlying companies thus

And this is what is exactly happening. Black box

on these programs running on super-

ast computers which place thousands of buy and sell

orders per second to exploit the short-term trading

opportunities which keep on arising in the market and

which are extremely difficult for a human to cash on.

In August 2011 it was estimated that high

trading or algorithmic trading accounted for almost

70% of all share transactions in New York. At the same

time, high-frequency trading accounted for as much

as 50% of trading in London and has been blamed for

aggravating intra-day swings and putti

investors at a disadvantage due to the pace at which

such trades are placed in the market.

How it works?

Let us understand this with an example. If a hedge

fund's client wishes to sell off large quantities of a

company's stock all at once, the inflow of the stock in

the market would result in the price coming down,

much to the despair of the hedge fund and the client.

To avoid this type of loss, hedge funds use algorithms

or programs that break down the stocks into

numerous smaller transactions and sell them through

more tactful channels. But it's a competitive world



In August 2011 it was estimated that high-frequency

trading or algorithmic trading accounted for almost

70% of all share transactions in New York. At the same

frequency trading accounted for as much

as 50% of trading in London and has been blamed for

day swings and putting ordinary

investors at a disadvantage due to the pace at which

such trades are placed in the market.

Let us understand this with an example. If a hedge

fund's client wishes to sell off large quantities of a

nce, the inflow of the stock in

the market would result in the price coming down,

much to the despair of the hedge fund and the client.

To avoid this type of loss, hedge funds use algorithms

or programs that break down the stocks into

sactions and sell them through

more tactful channels. But it's a competitive world



and competitors have algorithms in place to detect

other algorithms trading large quantities of stock.

Thus, when one firm notices another firm trading

Company X's stock in bulk, they can take a short

position on the stock because the prices are going to

fall with a huge inflow of company X's stocks.

Hedge funds are increasingly relying on this type of

trading to sell or buy large amounts of stocks without

triggering a price reaction in the market. Naturally,

the market becomes more volatile when algorithms,

working only on the basis of minor price fluctuations

are executing orders to make gains. But what is ironic

is that there are programs which break volumes into

smaller transactions and programs to identify such

activities and find out the size of the trade.

The depth of despair came in the first week of August

2011 when investors in Europe moved strongly

against Societe Generale, the largest bank of France

pushing its shares down by as much as 20%.As a

result, European regulators banned shorting on banks

in France as well as three other European countries.

Lord Paul Myners, Her majesty's Treasury in UK's

Finance Ministry said, High-frequency trading has

been a contributing factor in the harsh swings which

have led to more than 300bn being wiped off the

value of British shares since the beginning of July.

Also, the average transaction size has also gone down

significantly in the past few years.

So now days a fund manager, instead of looking for

good brokers is looking for a good program or

algorithm to facilitate him with his trade practices.

Also like other computer software, these programs

are getting customized to suit the customers' needs.

Kevin Slain, co-founder of the Game Development

Company and an algorithmic expert talks about this.

He says that the algorithms of Wall Street are

dependent on one major quality, which is speed and

they operate at milliseconds and microseconds. So, if

a Wall Street algorithm is a few microseconds behind

the others; it loses. So this algorithm needs to be as

close as it could get to the internet server and there is

a fight to get internet signals faster so as to close the

deal a few milliseconds faster as compared to others

and make money.

The Indian Scenario

The Securities and Exchange Board of India (SEBI) had

legalised algorithmic trading in early 2008, just as the

financial crises began to make its presence felt in

India. Foreign brokers were the first ones to introduce

algorithmic trading but backed off as equities started

sinking. Lehman Brothers' India was one of the first to

launch a platform for algorithmic trading for its clients

in August 2008, only to declare bankruptcy the very

next month. But when the equity market started



picking up since 2009, algorithmic trading found its

feet again.

The initial focus was on building a market for this type

of trading with complete proprietary desks and tech-

savvy investors, and the initial batch of products were

offerings that allowed investors to work with inbuilt

models. Trades can be executed through these

programs at incredible speeds of as low as 150 micro

seconds or 1/2000th the time it takes the human eye

to blink. In a little over three years since SEBI allowed

it, trading through this route has started to account

for nearly a quarter of the total volumes in Indian

markets. And seeing the scenario in the developed

markets, this number can only be expected to grow.

The dependency on these programs has increased to

such an extent that, some have even put down the lid

on their risk management systems which have been

made mandatory by regulators and exchanges just to

save a few microseconds. An algorithmic trade can be

executed in 150 microseconds, but the presence of a

risk management system can add another 500

microseconds to it. Therefore, they switch off or dilute

the risk management systems to save on time.

What can be surely said is that with reducing human

element, the markets will become more predictable

but boring with the war of having a better algorithm

in place rather better intellect. It would be like having

an F1 race with drivers being significantly replaced by

computers dictating them directions. What a boring

race it would be!

Akshay Narang

MBA I

Answers to Crossword

Across

1. CAMELS

2. SWIFT

3. IOC

4. Hammer

5. NPA

6. Vostro

7. Beta

8. ETF

9. Euro

10. Exit Fee

Down

1. China

2. Rajat Gupta

3. LIBOR

4. Churning

5. OTC Market

6. Vedanta

7. BOLT

8. Fiat Money




In this article an attempt has been made to list the

major causes of Greek Debt Crisis, to draw parallels

with conditions prevailing in India and to see whether

the same can profligate the Indian Growth

Brief Introduction to the Greek and

Economy




In this article an attempt has been made to list the

major causes of Greek Debt Crisis, to draw parallels

with conditions prevailing in India and to see whether

Indian Growth Story.

Greek and the Indian

With this background, we now analyse

of Greek crisis and whether India should reflect to

avoid similar crisis at home.

1. Welfare State

Greece

Greece economy emerged as a welfare state,

implementing populist policies rather than following

self sustaining business model. An automatic, indexed

salary instead of pay increases based on productivity,

the infamous 13th and 14th monthly salaries etc.

were some of the causes of high budget deficits.

India

Social democratic policies governed India's economy

from 1947 to 1991, characterized by extensive

regulation, protectionism, public ownership, pervasive

corruption and slow growth.

Since 1991, continuing economic liberalization and

reforms have accelerated India's economic growth

and moved the country towards a market

economy.

However, even at present in India, like in Greece, the

ruling elite have their own welfare state, doling

populist handouts to win votes.

For example, India is trying to fight poverty through

National Rural Employment Guarantee Scheme

(NREGA). This scheme is more about winning votes




th this background, we now analyse major causes

of Greek crisis and whether India should reflect to

avoid similar crisis at home.

Greece economy emerged as a welfare state,

implementing populist policies rather than following

self sustaining business model. An automatic, indexed

salary instead of pay increases based on productivity,

the infamous 13th and 14th monthly salaries etc.

re some of the causes of high budget deficits.

Social democratic policies governed India's economy

from 1947 to 1991, characterized by extensive

regulation, protectionism, public ownership, pervasive

corruption and slow growth.

ing economic liberalization and

reforms have accelerated India's economic growth

and moved the country towards a market-based

However, even at present in India, like in Greece, the

ruling elite have their own welfare state, doling

s to win votes.

For example, India is trying to fight poverty through

National Rural Employment Guarantee Scheme

(NREGA). This scheme is more about winning votes



rather than empowering and preparing the poor for

the competitive job market.

2. Decline of Industry

Greece

Greece's main industries went into decline as labour

costs increased too fast for the industry to remain

competitive in Europe despite a significant rise in

worker productivity. There was also very little

modernization due to a lack of financing.

India

Outdated laws in India, help neither the workers nor

the business owners. On the part of business owners,

they feel the lack of flexibility and freedom to take

necessary timely action. Workers face red tape, lack of

transparency, denial of justice, unsafe working

conditions and lack of social security system for

workers in unorganized sector.

Labour and land acquisition disputes are on the rise.

Service industry is facing high attrition rate, rising

labour costs coupled with low quality of services. As is

evident by recent workers strike at Maruti Suzuki,

land acquisition issues for Tata Nano Project at Singur,

high demand for change of service provider in

telecommunication and lowering profits of IT

Companies.

With low priority to research and development, even

now, modernization is taking place mainly through

import of machinery and technical knowhow.

3. High Budget and Structural Deficit

Greece

The Greek economy was one of the fastest growing in

the euro zone from 2000 to 2007. A strong economy

and falling bond yields allowed the government of

Greece to run large structural deficits.

In May 2010, the Greek government deficit was

estimated to be 13.6% which is one of the highest in

the world relative to GDP.

The public finances had been fiddled: a budget deficit

of 3.7% of GDP was in fact touching 14%. This and

rising debt levels (127% of GDP in 2009) led to rising

borrowing costs, resulting in a severe economic crisis.

India

Gross Fiscal Deficit as a percentage of GDP

Source: RBI

Above trend reveals that fiscal deficit in India has a

tendency to rise, except for short intervals in

between. Government of India is expanding physical

infrastructure capacities, including connectivity in the

rural regions. In India inordinate delays and cost

overruns cause structural deficit to increase, adversely

0

2

4

6

8

10

12



impacting both the long and short-term growth

prospects of the economy.

The main factor accounting for the rise in the gross

fiscal deficit is increased revenue expenditure for both

the central and state governments, which has always

been a matter of concern with revenue expenditure

accounting for about 80% of total expenditures.

4. High Debt to GDP Ratio

Greece

During the 80s Greece suffered from poor

macroeconomic performance due to expansionary

fiscal policies that led to a tripling of the debt-to-GDP

ratio, which went from the modest figure of 34.5% in

1981 to 127% by the end of 2009 and 140% in 2010.

India

Debt of Indian Government as % of GDP

Year Combined Outstanding Liabilities

(Central and State Public Debt)

1998-99 56.0

1999-2000 63.2

20002001 70.6

20012002 76.0

20022003 80.2

20032004 81.4

20042005 81.3

20052006 80.3

20062007 77.3

20072008 75.1

20082009 72..7

Source: RBI

The above trend reveals that apart from some years

as exception the debt has been more than 70% of GDP

in India.

The ability to pay off its debt is measured by a

countrys debt relative to its GDP, referred to as its

debt-to-GDP ratio. If a countrys debt-to-GDP ratio

gets too high, investors will worry that the

government will either default on this debt, or will

deflate its value away by monetizing the debt and

thereby engineer a high inflation rate.

5. High Level of Corruption in Public Life,

High Degree of Tax Evasion

Greece

The Greek economy faces significant problems,

including rising unemployment, an inefficient

bureaucracy, tax evasion, high levels of political and

economic corruption and low global competitiveness.

Estimated tax evasion costs the Greek government

over $20 billion per year.

The real culprit is an institutionalized, broken system

and inefficient management of the public sector and

the overall revenue system. There is a mismatch as

regards money collected from taxes and public sector

services. It's a rift that is becoming wider and wider.



India

Corruption has been one of the pervasive problems

affecting India. In India the size of black economy is

almost the same as that of white economy. It is

evident by the fact that thirteen successive rate hikes

by Reserve bank of India have failed to control the

demon of inflation, which stands at a high of

12%(CPI), because parallel economy that runs on

black money can never be impacted by such

measures, these measures are meant for countries

where economies are run in a transparent and clean

manner.

Indians have to put up with cumbersome and

inefficient bureaucracy, rampant corruption and

bribery at all levels, the licenses, red tape and scores

of other impediments in their day to day life.

Conclusion

The similarities between reasons of crisis in Greece

and the manner in which India is governed are too

stark to be overlooked. It is wise to remember the fact

that India had faced similar crisis that forced it to

mortgage part of its gold reserves only a little over

two decades ago.

Indians are resilient, hardworking and honest with a

bright future provided they tackle the demon of

corruption and bribery, bad rules and processes which

not only lead to persistent distortions, hold back

foreign investment but also systematically diminish

economic growth.

To quote Greek MP Elena Panaritis A solution to all

the problems can only be found if the formal economy

becomes simple, predictable and, therefore, easy to

track. Any rules must, at long last, be applied even-

handedly, with appropriate pricing of risk and minimal

informational asymmetry, which usually benefits

those who have accumulated considerable economic

power and thus stifles innovation, risk-taking and

entrepreneurship.

Ishan Vijayvergiya

MBA I



Should Government

For

There is a political game being played on the question

of bailing out Kingfisher airlines. Left, as usual, does

not like private players and if we had their rule, we

would not be using same old Ambassador Car. BJP and

certain sections of Congress too are

support the cash strapped airline.

There is a misconception that airline industry is

maintained by private players and government has no

role in its further development. This is not true as

airline industry is still growing and lot of refor

including FDI in airline are waiting at the door.

Government charges heavily on the Aviation Turbine

Fuel (ATF) and other taxes.

The question is not only of Kingfisher, Jet Airlines

posted heavy loss and it is better not to speak of Air

India. The aviation industry greatly needs a

government boost for the development of our middle

class population needs. Today airline travel has

become possible for middle class people due to

private players coming in providing healthy

competition to keep rates down and better service.

As per data available from the internet, the US civil

aviation industry directly creates 4.2 million jobs in

the airline, travel and tourism sectors. Its contribution



Finalyst Debate:

Should Government bailout Kingfisher

There is a political game being played on the question

of bailing out Kingfisher airlines. Left, as usual, does

not like private players and if we had their rule, we

would not be using same old Ambassador Car. BJP and

certain sections of Congress too are unwilling to

There is a misconception that airline industry is

maintained by private players and government has no

role in its further development. This is not true as

airline industry is still growing and lot of reforms

including FDI in airline are waiting at the door.

Government charges heavily on the Aviation Turbine

The question is not only of Kingfisher, Jet Airlines

posted heavy loss and it is better not to speak of Air

ation industry greatly needs a

government boost for the development of our middle

class population needs. Today airline travel has

become possible for middle class people due to

private players coming in providing healthy

better service.

As per data available from the internet, the US civil

aviation industry directly creates 4.2 million jobs in

the airline, travel and tourism sectors. Its contribution

to the US GDP is nearly 9%. India needs to develop the

airline industry for business and tourism. The aviation

sector growth is indirectly the growth of our economy

and it is a part of infrastructure development of our

country. Government should encourage private sector

by providing assistance to them in every form

possible.

Against

As per the view of Rahul Bajaj, If it's a free market

economy, those who die must die. There is no point

in bailing out a company in a free market economy as

a business fails only if it is not viable. Government

should not put the taxman mon

business which is already in pathetic condition.

Various countries are suffering by putting money in

bad investment and hence making the citizens of the

country poorer.

According to some industry experts, As the old

adage goes, you have to cut your coat according to

the cloth, and if private airlines began flying even

before they could walk, they have to pay the price.

They found it profitable when the going was good and

there were fewer competitors. Now the competition

has increased and you have to revamp your financial

models.



Kingfisher?

to the US GDP is nearly 9%. India needs to develop the

ry for business and tourism. The aviation

sector growth is indirectly the growth of our economy

and it is a part of infrastructure development of our

country. Government should encourage private sector

by providing assistance to them in every form

As per the view of Rahul Bajaj, If it's a free market

economy, those who die must die. There is no point

in bailing out a company in a free market economy as

a business fails only if it is not viable. Government

should not put the taxman money in such a bad

business which is already in pathetic condition.

Various countries are suffering by putting money in

bad investment and hence making the citizens of the

According to some industry experts, As the old

to cut your coat according to

the cloth, and if private airlines began flying even

before they could walk, they have to pay the price.

They found it profitable when the going was good and

there were fewer competitors. Now the competition

you have to revamp your financial



There are some opinions that if government wants to

put money in airline, they must put in the national

carrier Air India. Also the bailout is economically

irrational as the economy is slowing down and

inflation is very high. Vijay Mallya, owner of Kingfisher

Airlines, has an image of flamboyancy and is chairman

of UB group. So why should government infuse money

in pockets of such a business men.

Various political parties and major sections of

government excluding our PM are opposing a single

penny of bailout to Kingfisher and they are justifiably

right. In a free market economy, government should

not save a company; else many companies would

demand the same.



Financial Inclusion: Dream yet to be realised

Financial Inclusion is the delivery of banking services

at an affordable cost to disadvantaged and low

income groups. In reality it includes loans,

services, credit and debit cards access, overdraft

facility, cheque facility etc. But in India it means

having a saving or current account with any bank.

According to the Index of Financial Inclusion which is

used to find out the extent of reach

services, India has been ranked 50 among 100

countries. Only 34% of Indian individuals have access

to banking services. In order to raise this number the

RBI and the Government of India has taken innovative

steps. To make sure that the banking s

available to the poor new branches of Regional Rural

Banks are being opened.

In 2004, Reserve Bank of India has set up a

commission (Khan Commission) to look into aspects of

financial inclusion and the recommendations were

incorporated into the mid-term review of the policy




Financial Inclusion is the delivery of banking services

at an affordable cost to disadvantaged and low-

income groups. In reality it includes loans, insurance

services, credit and debit cards access, overdraft

facility, cheque facility etc. But in India it means

having a saving or current account with any bank.

According to the Index of Financial Inclusion which is

used to find out the extent of reach of banking

services, India has been ranked 50 among 100

countries. Only 34% of Indian individuals have access

to banking services. In order to raise this number the

RBI and the Government of India has taken innovative

steps. To make sure that the banking service is

available to the poor new branches of Regional Rural

In 2004, Reserve Bank of India has set up a

commission (Khan Commission) to look into aspects of

financial inclusion and the recommendations were

term review of the policy

(2005-06). With the instruction from RBI, banks are

now offering No Frill Accounts to low income

groups. The individual bank has the authority to

decide whether the account should have minimum or

zero balance. With the comb

banks and financial institutions, six million new 'No

Frill' accounts were opened in the period between

March 2006-2007. Banks are now considering

financial inclusion as a business opportunity in an

overall environment that leads

Financial inclusion mainly helps the poor in getting

them out of the clutches of local money lenders by

providing them formal financial institutional support.

As a first step towards this, some of our banks are

offering general purpose credit ca

credit cards which offer small loans without any

collateral security. The RBI has simplified the KYC

(Know your customer) norms for opening a 'No frill'

account. Now a low income individual can open a 'No

Frill' account without identity pro

proof.

Banks are now permitted to use the services of NGOs,

SHGs and other civil society organizations as

intermediaries in providing financial and banking

services. These intermediaries could be used as

business facilitators (BF) or busines

(BC) by commercial banks.

RBI has asked the commercial banks to start a 100%

financial inclusion campaign on a pilot basis in




06). With the instruction from RBI, banks are

now offering No Frill Accounts to low income

groups. The individual bank has the authority to

decide whether the account should have minimum or

zero balance. With the combined effort of commercial

banks and financial institutions, six million new 'No

Frill' accounts were opened in the period between

2007. Banks are now considering

financial inclusion as a business opportunity in an

overall environment that leads to growth.

Financial inclusion mainly helps the poor in getting

them out of the clutches of local money lenders by

providing them formal financial institutional support.

As a first step towards this, some of our banks are

offering general purpose credit cards and artisan

credit cards which offer small loans without any

collateral security. The RBI has simplified the KYC

(Know your customer) norms for opening a 'No frill'

account. Now a low income individual can open a 'No

Frill' account without identity proof and address

Banks are now permitted to use the services of NGOs,

SHGs and other civil society organizations as

intermediaries in providing financial and banking

services. These intermediaries could be used as

business facilitators (BF) or business correspondents

(BC) by commercial banks.

RBI has asked the commercial banks to start a 100%

financial inclusion campaign on a pilot basis in



different regions. As a result, states and union

territories like Pondicherry, Himachal Pradesh and

Kerala have declared 100% financial inclusion in all

their districts. Mangalam Village in Pondicherry

became the first village in India where all households

were provided banking facilities. Reserve Bank of

India's vision for 2020 is to open nearly 600 million

new customers' accounts.

Yet, the dream of financial inclusion has not been

fulfilled. The main reason is that the products

designed by the banks are not satisfying the low

income families. The provision of simple, small and

affordable products will help to bring the low income

families into the formal financial sector. Banks have

limitations to reach directly to the low income

consumers. Correspondents can be considered to be

an excellent channel which banks can use to distribute

their product information. Educating the consumers

about the products of banks and their financial

benefits will be a great step to tap their potential.

Banks are now using new technologies like mobile

phones to reach low income consumers. It is possible

that the telephone providers themselves will start

basic banking services like savings account and

payments. Indian telecom consumers have few links

to financial institutions. So without much difficulty

telecom providers can win the battle with banks.

Banks should therefore be proactive about using this

opportunity.

Financial inclusion is a great step to alleviate poverty

in India. But to achieve this, the government should

provide a conducive environment in which banks are

free to pursue the innovations necessary to reach low

income consumers and still make a profit. Financial

service providers should learn more about the

consumers and new business models to reach them.

In advanced economies, Financial Inclusion is more

about the knowledge of fair and transparent financial

products and a focus on financial literacy. In emerging

economies, it is a question of both access to financial

products and knowledge about their fairness and

transparency.

Neha Agarwal

MBA I



Bush vs. Obama: The Mighty vs. the Charismatic

There has always been policy and thought difference

between the Republicans and the Democrats in the

US. It has been a belief that Republicans are best for

the US economy but facts have been hinting

otherwise. According to the university of Nevada-

Reno economics, from a period of 1949 to 2005:

The Average unemployment rate under the

Republicans was 6.0% while that under the

Democrats was 5.2%

The growth in Unemployment rate under the

Republicans was 0.3% and under the

Democrats was 0.4%

The corporate profits as a share of GDP were

8.8% for the Republicans and 10.2% for the

Democrats

The CPI inflation rate was same for both

standing at 3.8%.

According to the studies the US economy has grown

significantly faster under the Democrats as compared

to the Republicans. We continue speculating these

differences in the 21st century as well when Obama

replaced Bush, a few years ago, to bring economic

reforms to a country going through a phase of war

followed by recession.

US economy has undergone a series of rise and fall

from the period between 2001, when Bush took over

the administration, to 2011, when Obama stands as

the president. Reign of George W. Bush which started

with a period of recession witnessed increase in tax

expenditure, agricultural subsidies, oil prices and

expenditure on Iraq war. With a trade deficit of nearly

$850 billion and arguments over how to spend the

budget, it became visible that money was being used

where it was not required. Obama's presidency also

started with a recession and saw a stimulus package

to counter the crisis and higher emphasis on health

care reforms. Obama's entry into the White House

was looked upon as a hope to pass by the era of

recession but the progress is slow and he is still not

able to win the confidence of a US citizen.

The economic policies under Bush were initially aimed

at combating recession through tax cuts to boost

spending. President Bush had raised tax cuts of about

$2.4 trillion during his tenure out of which $474 billion



came from the first four years of his term. While

President Obama had cut taxes by $654 billion in the

year 2011 and 2012 plan by signing major tax cutting

legislations like the American Recovery and

Reinvestment Act , Tax Relief, Unemployment

Insurance Reauthorization and Job Creation Act of

2010. Although the tax cuts by Obama in 2 years are

much more than tax cuts by Bush in his first four

years, Bush's tax cuts still appear to be massive

because of two reasons. Firstly, Obama's tax cuts are

targeted to the middle class people. It goes to the

bottom of the 80% US households. While the tax cuts

by Bush were targeted to the 20% of the rich

population of the country. Secondly, the tax cuts

provided by President Obama are temporary and the

impacts of the tax cuts provided by President Bush

have a higher cost as compared to Obama and are

recurrent in nature. The tax cuts provided by Obama

will eventually expire in the course of a decade and

hence the tax cuts provided by Bush appear to be

more massive.

After the 9/11 attack in US the spending was focused

on war and the defence expenditure rose. The 9/11

attack in US aggravated the effect of recession on

business in US, hence Bush came up with more tax

cuts to help in recovery. People had seen the rise and

fall of home loans and mortgages in this period. Bush

did not respond to the Subprime Mortgage Crisis and

passed it on to Obama. When Obama took over with a

$787 million economic stimulus package, there was a

positive growth seen in the economy. He stressed on

the health care reforms and reduced the cost of

health care. In response to the mortgage crisis,

Obama regulated the non-banking financial

companies and included the Consumer Financial

Protection Agency to protect consumers with credit

cards and debit cards from frauds.

Doubts on US economic stability have also been raised

again with the US falling into a debt crisis. Despite

efforts from both the parties during their respective

regimes, the US debt burden is getting heavier with

each passing day. Critics doubt the various policies

introduced by Obama and the explosive rate at which

Obama is increasing the debt. They believe that while

Bush was fast in raising the debt, Obama might be

uncontrollable.

The debt history goes way back to the time before the

great depression. During the great depression US

budget started to rise under democratic president

Franklin Roosevelt. After the great depression during

the time when Hassry.S.Trueman, a democrat,

became the president, US had no debt but surplus.

Debt started rising when Ronal Regan raised a $2342

of debt, followed by George.H.W.Bush, both

Republicans, raised a debt of $1494. Bill Clinton

slowed the debt growth by increasing the debt by only

$858 during his period as compared to George Bush



who had raised a debt of $2989 by the year 2009.

While Bush was spending lavishly, Obama's

expenditure is explosively high and is projected to be

up to $9979 in the year 2016. This high amount of

debt is due to the stimulus spending, non defence

spending, tax cuts and healthcare reforms. Apart from

this, unemployment has increased from 4.5% in 2001

to 9% in 2011 and income inequality is also on a rise.

While critics might believe that Obama is to be

blamed, what they seem to ignore is that the debt of

2009 was inherited by Obama. Debt ceiling is not just

being raised because of the new policies that Obama

is introducing but because of the existing policies that

had been existing since a decade. Although Obama's

healthcare plan is looked upon as an extra cost to the

budget, but the Congressional Budget Office (CBO)

analysis states that it could actually reduce the

deficits. The healthcare plan has been implemented to

curtail the spending and save the cost going into

wastage and fraud. Unemployment and inequality are

a by product of economic downturn. While the effects

of the expenditures made by Bush were recurring, the

impact of Obama's expenditure on the deficit are said

to be temporary and will eventually reduce the US

deficit.

While Obama brings on economic reforms and

massive tax cuts, the rising debt issue still makes his

position weak in the US. The impact of the policy

changes brought by Obama in the US economy may

be visible late in time. Although agencies like CBO and

Joint Committee on Taxation (JCT) says that the policy

will help reduce the deficit, but the US citizens and

critics are apprehensive about the future of the

country and the claims made by the Democrats. Thus

it might just be too late for the Democrats till the next

elections to keep a strong stand if the impact of the

policy does not subdue the economic down turn and

the current situation prevails. But at the same time,

the act of Republicans does not seem to have

impressed the voters. Hence, whether the country

votes for the incumbent party or demands a change of

regime depends on how soon Obama reaps the fruits

of his policies and expenditure on the same.

Rishu Sukhija

MBA I



The Beleaguered Rupee

"Currency trading is unnecessary, unproductive, and

immoral!!"- Dr. Mahathir Mohammed, ex Prime

Minister of Malaysia. He further said "It should be

stopped. It should be made illegal!"

The Malaysian currency Ringgit was at its lowest point

during 1997 and these words were spoken at the IMF

and World Bank conference in Hong Kong. The Prime

Minister of Malaysia obviously credited the currency

traders (read speculators) for this.

Some of the Indian politicians must be echoing the

same sentiments at the moment.

The Indian Rupee has depreciated by about 22 per

cent in four months from Rs. 43.95 in July to

Rs.53.72 on December 14, this is the worst

performance by any currency in the region during this

period.

The immediate question that arises is what is to be

blamed for this crisis that we are in. The forex market

explains that importers went complacent with the

appreciation of rupee earlier in this year, they



The Beleaguered Rupee-Still Bearish?

trading is unnecessary, unproductive, and

Dr. Mahathir Mohammed, ex Prime

Minister of Malaysia. He further said "It should be

The Malaysian currency Ringgit was at its lowest point

rds were spoken at the IMF

and World Bank conference in Hong Kong. The Prime

Minister of Malaysia obviously credited the currency

Some of the Indian politicians must be echoing the

The Indian Rupee has depreciated by about 22 per

from Rs. 43.95 in July to

Rs.53.72 on December 14, this is the worst

performance by any currency in the region during this

The immediate question that arises is what is to be

lamed for this crisis that we are in. The forex market

explains that importers went complacent with the

appreciation of rupee earlier in this year, they

couldnt anticipate the rupee depreciation and they

are more or less covering their exposure now that t

in a great rush, therefore driving the currency prices

up. Exporters on the other hand are said to be sticking

with investments hoping for a revival in the currency.

Speculators take these opportunities to cash in some

money. But not all the blame shoul

currency traders. Speculators in a way realize profits

through trading currencies similar to the way one

would trade commodities. They treat currency as a

commodity. While currency traders can certainly

cause temporary currency fluctuations,

with a strong economy and underlying fundamentals

will be immune to major fluctuations out of

speculation.

The question that arises is how strong is our

economy? Do the currency prices truly reflect our

economys fundamentals?

A combination of domestic and global factors along

with policy paralysis appears to be behind the free fall

of the rupee.



Still Bearish?

couldnt anticipate the rupee depreciation and they

are more or less covering their exposure now that too

in a great rush, therefore driving the currency prices

up. Exporters on the other hand are said to be sticking

with investments hoping for a revival in the currency.

Speculators take these opportunities to cash in some

money. But not all the blame should be placed on

currency traders. Speculators in a way realize profits

through trading currencies similar to the way one

would trade commodities. They treat currency as a

commodity. While currency traders can certainly

cause temporary currency fluctuations, but a country

with a strong economy and underlying fundamentals

will be immune to major fluctuations out of

The question that arises is how strong is our

economy? Do the currency prices truly reflect our

economys fundamentals?

of domestic and global factors along

with policy paralysis appears to be behind the free fall



Domestic economy growth slumped to 6.9 per cent in

Q2 of 2011-12 from 7.7 per cent in Q1 of 2011-12 and

8.8 per cent in the corresponding quarter in 2010-11.

This was largely due to moderation of industrial

growth. The IIP index showed a decline of 5.1 per

cent, year on year, in October 2011.

India was supposed to be immune to global

downturns but things have certainly changed or at

least it looks so at this moment. The global scenario

doesnt look that impressive, Q3 euro area growth, at

0.8 per cent, is worrying and 2012 growth is now

expected to be weaker than earlier projected as

reports suggest. Even the recent European Union (EU)

summit (December 8-9) agreement could not cool

down negative market sentiments.

And then, there is the turbulence in the global

financial markets and the strange plight of funds

towards the US dollar despite the troubles in the U.S.

economy. The markets obviously believe that the

dollar is a safe asset now. Quite strange these markets

are!

Inflation has been hovering at over 8 per cent for

most part of the last two years and strangely, the

Rupee was quite steady and even appreciated to

some extent, Rupee was steady at around 44.5 per

dollar for most part of last year. Rising inflation gives

rise to currency depreciation thats what economics

suggest. Probably this was about to happen, which

unfortunately not many people could foresee.

The Reserve Bank of India has thought of not

interfering with the free market except a few symbolic

operations given the country's foreign exchange

reserves of $306 billion. Two years back after the

Lehman fall the Rupee had depreciated to 51.25

(around 19%). The RBI that time resorted to

aggressive selling of Dollar, it sold around $18.67

billion in the month of October 2008 and continued to

sell dollars till March 2009.During this period, and it

sold a total of around $25.27 billion in the open

market, at prices varying from Rs 49.78 to Rs 52.61.

The RBI that time was able to deal with such a

situation as it had bought $ 78.203 billion from the

market at an average price of Rs 39.90/dollar during

the financial year 2007-08. The RBI ultimately made a

profit of around 38000 crores on these transactions,

but that is a different matter altogether.

The rupee gained 94 paisa on 16th December, because

of some qualitative measures taken by RBI such as

issuing certain new guidelines on forward markets in

foreign exchange. This move is to curb speculation on

the Indian rupee. RBI banned rebooking of cancelled

forward contracts; put limits on hedging based on

past performance and reduced net overnight open

position limits (NOOPLs) of authorised dealer banks.

The affect was seen in the NDF markets in Singapore

and Dubai. This move is certainly going to cool down

the pressure on rupee in the short term but in the

long term unless the macroeconomic numbers

improve the rupee wont strengthen.

In its mid-quarter monetary policy review, RBI said

that the rupee depreciated mainly because of a

widening trade deficit and the rupee is going to be

under further stress. It is highly unlikely that the

macro economic conditions are going to improve in

the coming months; there is high possibility of further



depreciation of rupee. Export industries such as IT,

gems and jewellery and textiles will benefit from that,

but that too in the short term till prices adjust. But the

depreciating rupee puts a lot of pressure on the

import bill of the country and the end users

(consumers) feel the heat ultimately.

There are several other factors to assuage the

negative sentiments around the Rupee.

Total external debt maturing within the next year

(both short term debt and long term debt) is about

137 billion USD, 43.5 % of Indias total foreign

currency reserve. Sizeable portion of this debt is

financed by European banks (as reported by The

Hindu-Business Line). So there is doubt whether these

banks would re-finance these debts.

With the spread between the RBI repo rate and Fed

rate reaching the highest level in recent history some

of the corporates have converted their Rupee liability

into Dollar liability. (Business Line)

India is a net importer with majority contributions

from oil imports. Rupee depreciating further poses a

real challenge to the balance of payments.

RBIs ability to intervene like the post Lehman

depreciation is also very limited as RBI is running tight

on the currency reserves in terms of import cover.

(Import cover of 8-9 months)

So what can be done now to check further

depreciation of Rupee? Some argue that The RBI

should have announced measures and policies to halt

the rupee depreciation without waiting for long. But

RBI cannot be blamed solely for this. Lot of reforms is

now long overdue. India should have relaxed foreign

investments in retail, insurance, pension, defense,

aviation and a host of other sectors. Some of these

reforms have been pending for nearly a decade. This

way India could have attracted a lot of FDI.

Government Infrastructure projects are also needs a

push. Currently there is no good news about

economic reforms; perhaps India needs a political

change to gain investor confidence.

Sudip Bain

MBA I





Finance Club

The Finance Club of Symbiosis Centre of Management & HRD is a student initiative which started in 2005. The

Finance Club functions as the interface between the student community and the financial world. Its objective is to

enable prolific interactions among the student community, coupled with valuable inputs from the faculty, the

academia and representatives from the industry. The club provides a platform for all students to come together and

explore the field of finance, leading to awareness amongst students with respect to the current financial aspects

surrounding the economy and the industry.

Activities of the Finance Club:

Finalyst: The bi-monthly magazine published by the Finance Club, contains concise and in-depth analysis of

emerging trends in the area of finance. Articles are written by students and eminent corporate personnel. It

has a circulation of more than 2500 copies covering corporate, alumni and India's top 30 B-schools.

Knowledge Series: The Finance Club comes out with a monthly Knowledge Series which equips layman to

understand basic financial terms. It is an initiative to increase financial awareness and make various financial

aspects in a simple, lucid and understandable manner.

Bizfluence: An informal discussion on Pink Paper

Pre Budget and Post Budget Analysis: An annual effort by the students at the Centre that involves

publication of the Annual Budget both before and after the formal Budget speech.

Events:

Past Events:

First Academic Summit on Valuation and Financial Modelling - Nov 2010

Integrated Risk Management Seminar-2009

Banking Conclave-2005

Upcoming Event:

Research Seminar on Commodity Market-18th Feb2012 at Mumbai



TEAM FINALYST

SENIOR MEMBERS

Abhishek Maheshwari

Anshul Sood

Charul Mahajan

Samira Vemparala

Sumit Dawra

JUNIOR MEMBERS

Anshu Saboo

Jimit Shah

Ravi Matalia

Saurabh Singhania

Sudip Bain

Surbhi Bhandari

Taha Lanewala

Contact Us:

Finance Club, SCMHRD

+91 7709079996

Fax: +91-020-22934306

email: [email protected]

web: www.scmhrd.edu

Symbiosis Centre for Management and

Human Resource Development

(An ISO 9001-2000 Quality Systems Certified

Management Institute)

(Constituent of Symbiosis International University)

Copyright

All Rights Reserved

Symbiosis InfoTech Campus

Rajiv Gandhi InfoTech Park, Hinjewadi, Pune 41105

december finalyst2011

Documents

scmhrd economy f

management concepts

management paradigm

scmhrd culture

global economy

t decemb symbiosis centre

centre of excellence

financial world