drafts for finance projects

8/9/2019 Drafts for Finance Projects

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Presentation for

nance ro ects

ANUP NAIR


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.

Executive Director Federal Bank


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Learning's:

From this video I understood various points as he.

po e a ou s ourney e ween e as , r an a, ngapore an

back to India. He spoke that MBA was not very well known when startedhis career. He also spoke how banking was altogether different when hestarted his career as an intern in a bank. He shared that how Middle Eastwas all about family business, in Sri Lanka civil war was going on wheremajor orientation was for export business and market was SME kind of

business. His last job in Sri Lanka was to sell the Bank in 2001. He also, , ,

shipping industry, Import & Export.

He spoke about how he overcame the political threat and technical barriers

to set up the First ATM in eastern parts of our country. He shared how theauthorities of Shops & Establishment issued notice on Bank for carryingbanking transaction on Sunday for use of ATM. Finally he won the court

.


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Cont.

Spoke about how Travancore Federal Bank started in pre-independence eratransformed to Federal Bank under the leadership of Mr. K. P. Homis. He

across the country. He also hailed about the Employees Loyalty andmixture of the youth and experienced workforce working towardsorganization goals. He explained the unity among the workforce as a familyand unique employee culture in the organization.

According to him wholesale banking is set for sharp growth. He expects.

suggested that return on investment for wholesale business is typicallyrange bound between 15-30%. He stressed that Corporate Bankingincluding Lending & Fee Business will account for Lion Share of wholesale

market. Investment Banking & Markets are checked by global slowdown.He feels positive in achieving the desired targets with such an economicoutlook.


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Cont.

He suggested Equity (Primary Origination & Secondary Trading) areexpected to raise along with M&A, debt capital market and private-equity

.

in M&A activity are already being felt.

His explanation for what is driving growth is Infrastructure Investment,Globalisation of Indian Industries, Inspiring a host of inbound M&A dealsand increased fund allocation by global managers, Increasing sophisticated

products and solutions are driving higher margins and growth.

According to him technology is really upto the mark in Wholesale Banking,but he feels scope of technological growth in retail banking.He is positive in Government policies affecting Banking Industry.

His message was to learn and choose a career which interests you ratherthan going with the wave. He stressed on ethical conduct to be practicedthrou hout our career and ersonal life.


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.

Chief People officer - Radio City


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Learnin 's:

Making Life more Entertaining Mission Statement of HR at Radio City asexplained by Ms. Sagorika Kantharia sums up the entire process at Radio

.

She said how the CEO Ms. Apurva Purohit wanted Radio City a great placeto work, with a positive outlook. She explained how she achieved that byrecruiting the right people, learning on the job, Robust recognition foremployee as Individual & team both. She discussed the positivity in change

in name of HR to Chief People Officer has brought to Radio City.

On asking challenges she faced in Radio City and how she overcame it. Sheanswered Key talent & Critical People on whom organisation has investedis leaving the organisation for better prospects & career growth. She was of

opinion t at was common in t e me ia in ustry. etention o suc eytalent & critical people was a huge challenge.


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Cont.

She overcame these by providing awards to employees for 100%achievement on consistent basis, providing adequate challenging work to

.

them. Delegation of work with authority and accountability gives employeesatisfaction.

She brought the annual attrition rate from 15% to 2% at Radio City.Which according to her is on positive track.

process, functional test from Junior Level, Interviews by HOD.

On enquiring the changes in HR in last 10-15 years. She explained that more

emphasis is on people now a days. Great career along with family balance isorder of day. She felt todays generation requires all the goodies in the kittywithout compromising any thing which was not the same in the past.


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Cont.

She dedicated her success to her family support, especially to her husband.She explained the role of family in individuals success.

She highlighted that Collaboration among department pose a greatchallenge in organisation. According to her continuous communicationbetween departments along with team work of HR, HOD & CEO is prerequisite for collaboration among departments.

She discussed formation of Radio City School of Broadcasting instituted.

idea for formation this school. The institute is 5 years old now with goodsuccess story. Students of this institute are procured by Radio City, as wellas other major players also recruit from this institute.

She is also one of the founder member of Forum for Emotional IntelligenceLearning, a social initiative.


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When asked by Future of Radio Industry she answered that the third phaseof growth is in progress. Over 800 more channels are to be added to the

. .

with growth prospects new threats will be emerged, for which Radio City isgeared up for keeping the leadership it has.

She shared her favorite quote The very Business in life is not to get aheadof others but to get ahead of our self every single day - Swami

Vivekananda.

Her message to young aspiring people is Not to look at the pay package atthe entry level rather look at role you are getting in organisation.


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.

CMO - TABcab


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Learning's:

Mr. Shyaam Singh started his career Selling Eureka Forbes Vacuum cleanerswhich according to him was concept selling than product selling because

.

for him. After working 15 years in Middle East for Freight Forwarding &Shipping industry he took advertising career. He discussed how he didnthad a set plan at the initial period of his career. He explains learning fromall, even juniors is golden rule for his success.

On asking about the change in style of advertising he answered that now in

what was it was in past. According to him advertisements has beenreaching to consumers than in the past which is because of the technological& digital development.

He also revealed how he was headhunted from TABcab after he returnedfrom Middle East because of a Family Trauma and loss of lives in his family.


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He went on with explaining about TABcab as the youngest in radio fleetservice providing companies, where Meru Cab is the senior most. He also

, ,

others. He explained the competitive advantage TABcab over other rivals.As TABcab is working on ownership model and all of its rivals are workingon Franchise owned model. TABcab according to him is having at least 50-70% share of the market.

He revealed about Mobile Display Terminal(MDT) Fleet Management

Safety is assured for Women & Senior Citizen at TABcab. He explained howthe Safe Assure program, a system which provide message to 5 personsselected by the customer in every 10 mins by GPS location in the cab. Zero

e usa ur ng pm - am ecause o n erna ona g s a n g an ocaflight in morning.


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On asking about Company grown tremendously and key factors of suchsustainability? He answered that this is processed driven industry. He

as per International standards now, which is gone very well with customerswho were previously used to wait for 30 to 60 Sec. Individual prizes forfrequent users was another soap used by TABcab.

He explained various campaigns such as Womens Day Campaign - 1000

free rides to lucky winner a Market driven Campaign, -

offered 1st Prize 6/4 feet real estate i.e. a coffin, Free boarding & lodgingfor 1 year - behind bars, Free Accessories - Hand Cuffs. Such campaignswere huge success for TABcab. Some other CSR were for free service for

senior citizen and handicapped people during Ganesh Utsav.


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He explained the challenges faced by TABcab. 10000 trips a day out of that120-130 complains, 80% of which are request for receipts. Others are Sathis

, ,

working etc.

He added Retain the Sathis is another problem. People with Badges can beonly employed. Sathis are covered for Insurance, Medical, cash rewards forevery 1 year stay.

.

Message for students keep learning and take calculated risk.


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'

BOP of a country is a systematic accounting record of all Economictransactions between the residence of the country & residence of foreigncountries within a period of time usually 1 year (though data reported is

quarterly).

other countries.

Components of BOP

a) Current Account.

b Ca ital Account.

c) Unilateral Payments Account.

.


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Current Account - Export & Import of Goods & Services, Interest &Dividend on Investment, Net factor Income, Net Transfer Payments.

Current account surplus increase a country's net foreign asset by thecorresponding amount, and a current account deficit does the reverse.

Deficit on current account = surplus in capital accountOr

Surplus on current account = deficit in capital account.

Capital Account - Initial flow of capital is recorded in the Capital account ofthe BOP as purchase of Foreign Asset.

ree par s o ap a ccoun

i) Private Capital (Long term & Short Term) Long Term Investment &Portfolio Investment Lon Term Loans Forei n Currenc De osits.


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ii) Banking Capital covers movements in external financial assets andcooperative banks authorised to deal in foreign exchange.

iii) Official Capital - Central Banks holdings in terms of foreign currencyand special drawing rights held by Government are categorised into loans,amortisation and Misc. Receipts & Payments.

Unilateral Payments Account - One way transfer e.g. payment made by

NRI, Payment for curing of illness in foreign currency in foreign country,.

Official Settlement Account (OSA) - Central Bank of Country use funds invarious ways to control appreciation/depreciation of Rupee through OSA.


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2. Money Market


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Learnin s:

Financial Market consists of Money market, Capital Market, For-ex Market,& Debt market.

Money Market is short term transfer of funds from suppliers to users whichhas active secondary market to reallocate. Basic parameters - LargeDenominations, Low Default Risk & generally issued to high qualityborrowers with little risk of default. Original Maturity of One Year or Lesswith risk of adverse price movements because of interest rate fluctuation is

lesser.

Money Market Securities consist of T-Bill, Repo, Commercial Papers,Certificate of Deposits(CD), Bank Acceptances and Call Money Market.

- i is reasury i are ort term oney mar et nstruments issue yCentral Government in the form of "Discount" Instruments. Currently RBIIssues T-Bill for tenors of 91Days, 182Days and 364Days.


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It is Issued to cover Budgetary deficit, refinance maturing GovernmentDebts and also conduct monetary policies.

T-Bills are highly liquid, can be bought and sold in an active secondarymarket via government securities dealers who purchase T-Bill from theGovernment, and resell them to investors.

T- Bills are in nature of Deep Discount Instruments. They are issued at

Discounted face value and redeemed at par on Maturity, the difference of-

Primary dealers create a market for T-Bills by purchasing and sellingsecurities for their own account and by trading for their customers

nc u ng epos ory ns u ons, nsurance compan es, pens on un s e c.

T-bill market is decentralised, with most trading transacted over thetele hone and or online tradin .


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REPO - A Repo is an agreement involving the sale of securities by one partyto another with a promise to repurchase the securities at a predetermined

.

Repos have a short term maturity e.g. from 1 day to 14 days, but now a dayslong term repos are also popular with period of 1 - 3 Months.

Repo is a collateralised Loan with the collateral backing taking the form of

securities. In most repos the title of Securities is transferred to the Repo

Repo are arranged either directly between two parties or with the help ofbrokers and dealers.

Repos are used by central Bank to help it conduct open market operations asa part of its overall monetary policy strategy.


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The Repo market is governed by the RBI and only eligible parties cantransact in eligible securities. Eligible Parties include banks, primary

-, , ,companies and Housing Finance Companies.

Repo Transactions are currently carried out only in Mumbai.

Commercial Paper - It is unsecured short term promissory note issued by acompany to raise short-term cash, often to finance working capitalre uirements.

The primary feature of CP is companies with strong credit rating cangenerally borrow money at lower interest rate by issuing commercial paper

an y orrow ng rom an s.

CP can be sold directly by the issuers to a buyer such as mutual funds orcan be sold indirectl b dealers in the commercial a er market.


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CP paper is generally held by the investor till maturity, thus there is noactive secondary market for CP.

CP is sold to Investors either directly using the Issuer's own sales force orindirectly through brokers and dealers such as major bank subsidiaries thatspecialize in Investment banking activities and investment banksunderwriting issues.

Essential for CP Issue - Company should have Tangible Net worth of INR 4,Assets with bank, Minimum Credit Rating by an approved agency, Issued inmultiples of INR 5 Lakhs, Issued at discount to face value redeemable at parat maturity.

Secondary transaction of Commercial Papers do not attract any stamp duty.Hence there are no explicit transaction costs when direct parties areInvolved.


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Negotiable Certificate of Deposits(CD) is a bank issued time deposit thatspecifies an interest rate and maturity date and is negotiable in secondary

.

CD is a bearer Instrument. It can be traded number of times in secondarymarket, therefore original buyer is not necessarily the owner at maturity.

CD are often purchased by money market MF which pool funds ofIndividual investors and allow this group to purchase negotiable CD.

CD maturity ranges from 7days to 1Year with most having a maturity of oneto Four Months.

s ssue o an nves or or un s epos e n o a sc e u e ommerc aBank and Development Financial Institution like IDBI, IFCI, Exim Bank etc.


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CD are unsecured Instruments issued at discount to face value and thediscount is market determined.

Bank CD are always discounted bills, whereas CDs issued by FinancialInstitutions are Coupon bearing. Banks are not allowed to grant loansagainst CDs or buy back their own CDs.

Bank Acceptances is a timely draft payable to a seller of goods, with

payment guaranteed by a bank. Time drafts issued by a bank are orders for

given date.

Many bankers acceptance arise from International trade transaction and the

un er ying etter o cre it t at are use to inance tra e in goo s t at aveyet to be shipped from a foreign exporter to a domestic seller.

Bankers Acce tance are a able to the bearer at maturit the can betraded in secondary markets.


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Denomination of bankers acceptance is determined by the transactionbetween the domestic Importer and foreign exporter.

Double protection underlying bankers acceptances that reduces the defaultrisk. Like T-Bills and commercial paper, bankers acceptances are sold on adiscounted basis.

Call Money market is inter bank Money market which includes Cooperative

Banks.

Specified Financial Institutes, MFs are only allowed as lenders.

The interest rates are market determined. Both borrowers and lenders need

to ave current accounts wit .


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Call money market serves as an outlet for deploying funds on short termbasis to the lenders having steady inflow of funds.

The supply of demand for funds in the market arises on account of :

a) Compliance with CRR with RBI.

b) As a funding source to build up assets.

d) Foreign Exchange flows.

e easona ac ors suc as arves s, a vance ax paymen s e c.


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3. Basics of Micro Finance


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Learnings:

Micro Finance is a revolution in finance today - Supply of small amount ofLoans and other basic financial services to the poor.

It is different from services provided by formal banks. Formal bank requiresome security for advancing money but in micro finance the only securitytaken is to link the honor of the people involved in one group. The loanmechanism is based on simplified process usually for 1 year and therepayment is in general weekly and interest rate is slightly higher by normalbank which ranges from 20% to 70% depending on country where the loan

Concept of Group Lending - If one borrower fails to repay, then the entiregroup is accountable for the same.

Benefits are poor households can meet basic needs and protect themselvesagainst risk, poor ability to cope with economic shocks, Build financially selfsufficient Em owerment of women Better Education Hi her IncomeEmployment Generation, Cohesiveness of the community.


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Myths - Poor are too costly to reach and motivate, Institution for the poorcannot be financially self sufficient, such Institution will only add a debt

.

Risk in Micro Finance are Entrepreneur Risk (Business Issues, HealthIssues, and other issues). Field Partner Risk (Fraud, Poor Operations).Country Risk (Economic, Political, Natural Disaster).

R = (AE + CF + II + K) / (1-LL)= =, ,

II = Investment Income, K = Desired Capitalisation rate, LL = Loan Losses.

Capitalisation (K) represents net Real profit the MFI would like to achieveas o oan port o io usua y - o average oan port o ioInvestment Income expected to be generated by financial assets, excludingthe loan portfolio.


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The returns are higher for Micro Financing entrepreneurs compared withnormal financial Institutions since the Interest charged is higher.

Fees & Service Charges are calculated on Initial Loan Amount and Collectedup front.

Challenges - Internal Control Systems, Supervision, Staffing Constraints,MIS, Geographic Dispersion, Donor Pressure.

- , ,Diversification, Low pre payment Risk.

Countries with Success Stories - Bangladesh, Cambodia, Colombia,cua or, icaragua, eru ussia.

India MFI - SKS Microfinance, Spandana Spoorty Pvt Ltd, Arman FinancialServices Bharati a Samruddhi Financial Services Grameen Koota Villa eFinancial Services Pvt Ltd, Equitas Microfinance (I) Pvt Ltd.


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4. Savings v/s Investments


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Learnin s:

Old Rule Income - Expenses = SavingNew Rule Income - Saving = Expenses

Income - Future Expenses = Current Expenses.

Pre pone your Savings & Post pone your expenses. Sure way of Increasingyour savings.

Indians are excellent savers, but there is a problem, unfortunately not so.

Simply Saving money, keeping as cash at home or saving account may notmean that money will work for you in future. Money loses its value calledPurc asing power ue to In ation.

Money saved in past has lost its purchasing power due to Inflation. Mostare not concerned due to i norance lack of financial literac .


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Saving to be Invested so that it atleast outgrow Inflation.If by Investing:

Return > Inflation GainReturn < Inflation Loss.

Saving is an act of putting aside money after expenses & Liabilities. Wemust focus on saving as this is in our control. Unfortunately Investment isnot.

TIPS on savings - Prepare your monthly Budget, Refrain from Impulsivebuying, Work on needs rather than wants, Economize yourself, avoidexcessive borrowing because you are preponing expenses and postponingsavings, start saving ear y.

Savings alone cannot achieve your Financial goals like dream home, childeducation retirement etc.


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Savings will work for you by Investing it in an asset class which at leastoutgrow inflation.

Investing saved money, gains strength and become powerful.

Investing is an act of your savings to be put into productive use with anexpectation of earning return more than inflation to preserve purchasingpower of money.

-While Investing help in countering Inflation and provides sense of financialsecurity.

pproac o nves ng i) Ascertain risk involved while investing in particular asset class.

ii Risk tolerance a etite should match the asset class.


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iii) Investment should be as per your goal and objective and not as permarket environment.

iv) Time period - Longer the period of your goal higher the risk you can

take and vise-versa.

v Age- Younger s ou pre er ris y asset or ig er gains.

vi) Do Adequate research - take professional advise & do not get carriedawa b crowd.

vii) Recognise tax implication while investing and start early for the wonderof compounding to take effect.


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5. Assetology


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Learnings:

Assetology is a mixture of Science and Art. Science because of the analyticalpart of it and art because picking right stock at the right time is an art.

Financial Asset & Physical Asset Financial Asset are most Intangible assetssuch as Equity, Bonds etc. whereas Physical Assets are tangible such asReality Asset, Gold etc.

Evaluating Investment and Financial Planning will achieve desired goals ofthe Investors

Picking right Asset Allocation model is important.

Strategic Asset Allocation is normally for Longer period of time.

Tactical Asset Allocation means allocation depending on market condition,Environment in which business is done & Government Policies you take adecision to Invest not to Invest or to bu to sell.


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Assetology at Macro Level explains to Invest or not to Invest.

.

Interaction between various assets amounts the cause and effect for theinvestor to identify while investing.

If one is not able to distinguish between cause & the effect, it will be a role ofdice i.e. gamble for the investor while investing.

The various interaction of Assets at Macro Level are broadly Interest Rate,Inflation, Current A/c, Exchange Rate, Capital flow, GDP, Asset Price, Oil,Government Finances and Money Market etc.

Once the cause and effect due to interaction of various assets are understoodit will help the investor for asset allocation.


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1. What is the difference between Recurring and Fixed Deposits

When it comes to savings and investing, most of the risk averse people loveto invest in bank deposits. And many gets confused between Recurring and

.

Recurring Deposits (RD) and Fixed Deposits (FD) have same features interms of safety, maturity and interest rate. Even the tax applicable is sameon the amount invested.

However, the difference lies in the nature of tax deduction. In a fixed

but there is no TDS deduction in recurring deposit.

Fixed deposits earn more when compared to Recurring deposits.

Fixed deposits are better for someone who has lump sum amount and maynot need for a period of time.


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Interest rate depends upon the maturity period, longer the period greaterthe interest rate.

In case, you do not have lump sum amount and looking for monthly

savings then RD is best option out of the two.

Interest rate depends upon the maturity period, longer the period greaterthe interest rate.


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2. Banking system vulnerable to Financial contagion : Reserve Bank Of

India.

India's close ties between lenders would leave the banking system,

bank warned in a report.

The RBI also used money markets as one of its variables for stress testsgiven an s requent y en to eac ot er in s ort-term maturities.

India's non-banking financial firms ( NBFC) also pose a risk to the banking

s stem due to their close ties with banks the RBI warned in the re ort.

This so-called shadow banking system is worth $190 billion in India,ranking it third largest among BRICS countries and 15th in the world, as per

. s a requen y use acronym a re ers o raz , uss a, n a,

China and South Africa


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Turning to other risks in India's financial system, the RBI highlighted theneed for "closer examination" of the practice of promoters who pledge a

.

The RBI noted it expected the level of bad levels to steadily come down,estimating the ratio of gross non-performing loans to total assets woulddecline to 4 per cent by March 2016 from 4.5 per cent at the end ofSeptember 2014 under its baseline scenario.

,inflation to hover around 6 per cent in the next 12 months if global crudeprices remained steady and monsoons are normal.

The central bank also expects India's economy to grow 5.5 per cent in thefiscal year ending March and then slowly pick up momentum in thefollowing year.


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3. RBI Advances deadline for rovidin services to unbanked villa es

The Reserve Bank of India has advanced the deadline for banks to completethe process of providing banking services in unbanked villages (with

, , , .

This move comes in view of the ongoing implementation of the PradhanMantri Jan Dhan Yojana (PMJDY), which is a national mission for financialinclusion.

The scheme seeks to ensure access to financial services such as

, , , ,pension in an affordable manner to the weaker sections and low-incomegroups.

n , t e tate- eve an ers ommittees s were man ate toprepare a roadmap covering all unbanked villages of population less than2,000 and notionally allot these villages to banks for providing bankingservices in a time-bound manner.


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The notional allotment was only intended to ensure that all villages have atleast one banking outlet for providing banking services and does not deny

business potential.

While preparing the roadmap for this scheme through a combination ofbusiness correspondent (BCs) and branches, the RBI said it should beensured that there is a brick and mortar branch to provide support to acluster of BCs units about 8-10 at a reasonable distance of 3-4

.

Since PMJDY was launched on August 28, banks collectively have opened10.36 crore basic savings bank deposit accounts and issued 8.38 crore RuPay

e it car s up to ecem er .

About 73 per cent of the total accounts opened have zero balance.The remainin accounts have balances a re atin 8 044 crore.


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4. Loans will be cheaper, but banking services to be expensive in 2015.

The banking space was a mixed bag for retail customers in 2014. Interestrates remained decidedly high during the year, delighting depositors but

.

The RBI introduced several customer-friendly measures during 2014 andeven took up cudgels on behalf of the aam admi by laying down a charter ofrights. But all these got balanced by a new rule that allows banks to chargefor ATM usage beyond five times a month.

'operate their bank accounts independently. Kids are permitted to usefacilities like ATM and cheque books.

oug mos ana ys s expec e o cu ra es n , s no c ear

this will happen in the next couple of months. Till that happens, make bestuse of the high deposit rates offered by banks. If you do not have a largesum to invest in a fixed de osit use recurrin de osits to lock in to the hi hrates


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If you plan to take a home loan in 2015, opt for a floating rate loan. Giventhe imminent cut in rates, a fixed rate home loan will not be a good idea.

Customers may submit only one proof of address when opening a bank

account or during periodic updating for KYC.

Ban s not to c arge orec osure c arges on oating rate oans.

Instead of penal charges for not maintaining minimum balance, banks

should limit services available on such accounts. Banks not to lev enalcharges for non-maintenance of minimum balance in any inoperativeaccount.

arges - an s o o c arge cus omers on y on e as s o ac ua

usage


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5. FII Inflows hit record $26 Billion in Debt markets IN 2014

Overseas investors pumped in a record Rs. 1.6 lakh crore ($26 billion) intothe Indian debt market in 2014 mainly on account of high interest rate and

.

The inflow by Foreign Institutional Investors in 2014 has significantlycontributed to taking the cumulative net investments into the Indian debtmarkets since being allowed over two decades ago, in November 1992, toRs. 2.6 lakh crore.

hot money because such funds can be withdrawn anytime, has come at atime when foreign companies have been mostly reluctant on their FDIs(Foreign Direct Investments) that carry a common perception of beingonger- erm n na ure.

According to market experts, high interest rates coupled with strong-willedRBI Reserve Bank of India attracted FIIs to invest in Indian debt markets.


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Interestingly, most of the inflows this year into Indian debt market has goneinto government securities.

Market experts said that overseas investors remained bullish on the Indian

debt markets throughout 2014, barring the month of April. The sentimentshad been bullish even during the first half of the year, mainly on hopes thata strong reform-oriented government will come to power at the Centre.

After the change in government at the Centre in May, there has been a

investors are finding India to be a far better choice that can generate returnsin both short and long term, Ladderup Wealth Managements ManagingDirector Raghvendra Nath said.

Amongst various emerging market economies, India is being viewed as thestrongest candidate for portfolio investments, he added.


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6. Indias FOREX Reserves up $ 3.16 BN TO $ 319.99 BN

Indias foreign exchange (forex) reserves rose $ 3.16 billion in the weekended December 19 to $319.99 billion.

In the full year, the countrys forex reserves have risen by $24.49 billion,

thereby making the countrys external position relatively more stable nowas compared to the end of the last year.

Foreign currency assets (FCAs), which form a bulk of the total reserves, rose$ 3.31 billion in the reporting week. For the full year, FCAs were up $ 27.20

billion.

During the week gold reserves remained unchanged at $ 18.98 billion.

pec a raw ng g s s an e coun ry s reserve pos on n e

International Monetary Fund (IMF) fell by $ 29.2 million and$ 117.6 million, respectively during the latest reporting week of the year.


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For the full year, gold reserves have come down by $ 1.61 billion, whileSDRs and the countrys reserve position in the IMF have dropped by $ 232.5

. , .


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7. Investment Banks ho e to ride on hi her in 2015.

Investment banks are hoping to ride on higher deal volumes in 2015, drivenby an expected consolidation among power, telecom companies and

acquisitions by Indian companies in healthcare, information technology and

capital goods.

Bankers hope the Narendra Modi government to push reforms to reviveeconomic slump and help drive M&A volumes, after a limited uptick in2014 as it takes longer time to sew up deals.

Investment bankers from at least eight banks Economic Times interviewedpredicted an increase in deal volumes in 2015.

ost o t e vo ume in was riven y oca conso i ation rat er t an

inbound or outbound deals. The notable deals included Sun PharmaceuticalIndustries purchasing rival Ranbaxy Laboratories and local ecommerce

iant Fli kart's ac uisition of M ntra. Cross-borderactivity was lower than previous years.


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Domestic banks scored over global peers in terms of the number of Indiadeals closed. Avendus Capital, I-Sec and Kotak Mahindra Capital have done

.

India's market saw 980 M&A deals worth $ 47.8 billion, 134 equity capitalmarket deals worth $ 11.3 billion and 320 debt capital market deals totaling$ 41.5 billion in 2014.

Within M&A, bankers expect sectors such as technology, telecom and

growth engines for 2015. "We expect M&A volumes to pick up in 2015driven by Indian corporates as well as overseas acquirers," said Kapoor ofCitigroup. Citi was part of some of top deals such as Sun Pharma - Ranbaxyan an s acqu s on o amra por .


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8. How to make the most of Investment opportunities in 2015.

In many ways, 2014 was a landmark year. It marked a turning point for theglobal and domestic markets after several years of gloom and unnerving

.

Even as the world economy stabilised, on the domestic front, the newgovernment at the Centre ushered a refreshing spell of revival and hope. Asmacro an micro in icators swung towar s optimism, we a so etecte aneed for caution.

Still there's much to look forward to in 2015 in ever as ect of ersonalfinance, ranging from stocks, mutual funds and banking to gold, real estateand insurance.

u p e pos ves a rea y pr ce n economy. can e seen y e mar e

sentiments and higher valuation by experts about the market


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Cont

Tips for Investments -

.gold.

Prices are expected to remain depressed in 2015. Large-cap funds to besafer bets in 2015

Basic exemption limit in taxation may be hiked in coming budget

Online insurance plans will become bigger and to be watched for in 2015.

Invest in real estate now, residential rates may rise in latter part of 2015.

Loans will be cheaper, but banking services to be expensive in 2015


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9. Online mone transfers rowin ra idl , Di ital Mone on the cards.

Online money transfer is emerging as a hot favourite when it comes topayments, data from the Institute for Development and Research in Banking

, , .

There has been a tremendous increase in online transfers using NationalElectronic Fund Transfers (NEFT) and Real Time Gross Settlement (RTGS)systems, AS Ramasastri, DirectorIDRBT, told Business Line.

-through these two systems and has a Structured Financial MessagingSystem (SFMS) hub.

e atest ata in icates t at transaction vo umes as we as va ue o

transactions had almost doubled in just one year.

This rowth is ex ected to increase in the current financial ear.


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Both the hub and settlement systems have sufficient headroom for businessgrowth for next three years. Its systems have also been upgraded to speed

.

The turnaround time for completing a transaction is as low as three secondsfor RTGS and 17 minutes for NEFT.

Digital money - IDRBT is now working on a new concept of digital money.This would do away with physical transfer of cash from banks and financial

.

Three exclusive research labs have also been set up for mobile payments,analytics and information assurances.

Analytics in banking has been gaining importance. If specific patterns areidentified, they will help in redefining customer relationship, fraud-detection and risk-miti ation.


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10. Mutual Funds um Rs. 23 500 Crores into stocks in 2014 as market

rallies.

Mutual funds pumped in more than Rs. 23,500 crore in domestic equities in.

This was in sharp contrast to net withdrawals of over Rs. 21,000 crore in2013.

Fund houses are upbeat about inflows for the next year as equity marketsare expected to deliver further.

Industry experts attributed the inflows in equities to improvement inmarket sentiments and increased participation from retail investors,primarily due to change in the government at the Centre.

The money in equities started coming in from the second half of May, afterthe announcement of General Election's verdict, and the momentum has

.


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Prior to May, mutual funds had been net sellers in the stock market sinceSeptember last year. MFs were net buyers of shares worth Rs 1,607 crore in

.

Optimism of investors is one of the main reasons why the industry has seeninflow this year. The new government coming into power with majority ontheir own gave sense of stability and hope that this will bring economyback on track.

various market segments including stocks, IPOs (primary market) andbonds.

e net in ow in t e equity mar et is in ine wit t e enc mar in ex

Sensex gaining more than 29 per cent in 2014.


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