ECONOMY & NATION


The RBI has recently constituted a committee to suggest revised norms with regard to priority-sector lending and related issues. Here’s some food for thought for the committee members and a few out-of-the-box suggestions to radically change the system prevalent today Yesterday (10th...

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Moneylife Digital Team 10 October 2011
In a memorandum to the RBI, AIBOC has raised several questions over Dhanlaxmi Bank’s business operations After whistleblowers raised a red flag raising questions about the operations of Dhanlaxmi Bank, the All-India Bank Officers Confederation (AIBOC) has alerted the Reserve Bank of India...

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After nationalisation of a number of large banks, mandatory lending to priority sectors served the purpose for which it was intended. But the entire process was subsequently torpedoed by the political class; the rural population was exploited for political gains and these banks are now saddled...

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India needs a microfinance policy that is holistic, futuristic and yet practical in terms of satisfying unmet ground-level financial needs of low-income and excluded people. It should be developed through a truly bottom-up and democratic process with widespread stakeholder input and...

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As the shipping industry globally reinvents itself once again, where does it find India’s position—and why is the answer ‘dismal’ when in reality it should be ‘brilliant’? The recent ‘Golden Jubilee’ celebrations at the Shipping Corporation of India (SCI) couldn’t have come at a worse time...

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The SHG-bank linkage model is ideal for providing credit at the grass-roots level for weaker sections of society and for poor women. However, a few issues need to be addressed to make the model more comprehensive While the recent year has seen a lot of focus on the MFI (microfinance...

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Think carefully before falling into the trap of justifying high valuations on the basis of some ‘hidden’ value It is fairly common for companies to hold shares in other companies or hoard huge piles of cash. In such cases, most analysts like to attribute a market value to these investments...

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Is it a small people’s car or is it a small luxury car? Yet another small hatchback was launched recently, this time by Honda, called ‘Brio’. That makes it a very crowded segment, indeed. The timing, however, could not have been worse. With the cost of loans going through the roof and high...

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ML Digital Team 06 October 2011
The organised sector created 704,800 jobs in India between January 2011 and June 2011 and 369,200 more jobs are expected to be created by September 2011, according to Ma Foi Randstad Employment Trends Survey–Wave2. The survey was conducted among 690 firms in eight Indian cities. The respondents...

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The stock has taken a beating and die-hard Apple fans are not very enthused by the latest offering. It might be time for Apple to go back to the drawing board Amidst much frenzy and fanfare, Apple's new CEO Timothy Cook took centre-stage at 10:00AM local time inside the town hall in...

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Moneylife Digital Team 05 October 2011
The depreciating rupee, weak macroeconomic global environment, squeeze on margins and wage-hike related costs may cause strong headwinds With the top four IT companies expected to report sub-6% q-o-q (quarter-on-quarter) dollar revenue growth (versus a figure close to 8% in Q1FY12 and 6%-12%...

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Moneylife Digital Team 03 October 2011
Over the past month, the southwest monsoon has picked up substantially and finally ended on a positive note. According to a study released today, cumulative rainfall for the week ended 28th September stood at 2.3% over the Long Period Average. But will food inflation drop? The monsoon season...

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A number of chinks need to be ironed out during the process of microfinance securitisation. The RBI needs to look into these while finalising its draft guidelines on this subject The RBI (Reserve Bank of India) has put up the draft guidelines on securitisation on 27th September and it...

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The Amazon Fire, a seven-inch tablet, does not have enough ammunition to take on the Apple iPad. But its Silk browser has capabilities which make it optimal for any tablet and cloud computing—hence, it has a great chance of dominating the browser market The technology space is witness to a...

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It is great for banks to appoint many nominee-directors to MFI boards, but they must act responsibly on the ground It is great that banks have decided to appoint nominee directorsi  on the board of MFIs (microfinance institutions), whose debt is being restructured. That banks are willing to...

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Moneylife Digital Team 30 September 2011
Higher export prices have left no takers for Indian onions in the international market; wholesale prices are crashing due to excess supply The prices of onion in the wholesale market are crashing because of the lower offtake by exporters and adequate supply with the arrival of the kharif...

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Moneylife Digital Team 30 September 2011
SnapGhar, a newly-launched group buying website, claims that it will provide a collective-buying platform for the real estate industry The Indian realty sector is in a dismal condition. Prices of property, on one side, are skyrocketing, while there are simply no buyers for ready-possession...

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Shukti Sarma 30 September 2011
Poor logistics infrastructure and piracy have dampened prospects for several clones of Netflixs. Indian online movie rental services provider, Seventymm is still fighting with these issues even after entering into new verticals. This raises question on the consumer-entertainment model as well

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Moneylife Digital Team 29 September 2011
According to CRISIL, rising cost of ownership of cars and strikes are to subdue sales growth in the festive season. Frequent fuel price and interest rate hikes would also impact growth in 2011-12 Rising cost of ownership of cars due to frequent fuel price and interest rate hikes as well as...

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The idea of thinking that a credit bureau alone could eliminate multiple, over and ghost lending and usher in responsible micro-finance lending seems very naïve. In fact, this could result in the credit bureau becoming a red herring rather than an actual solution. And unless the systemic issues...

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