Category: Economy

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Economy subscriptions thoughts

Wage Cut


The economy is re bouncing. Dow jumps. The soaring of share in dices is spectacular. The recession is slowly fading.  These sentiments send signals of happiness. There is a  spread of warmth and submissive look up.

The other side of the coin presents a grim, glum   efficacy. There is a predominant wage reduction in all segments ,and in all countries over the world. Wage cut does not impress a robust economy. When the going is good , there will not be any thought to scale down the pay. As  the administration envisages a shrink in its profit, it tightens its purse. Employees , do not shift jobs or retort against the down scaling ,for fear of not finding a suitable opportunity. This again  tells us about  the weak economy.

The slimmer pay packets bring wih them another baggage of woe. The mortgage  crisis falls heavily on the shoulders.Less pay indicates difficulty to pay  interest, which at  anyday will not go down.  Saving becomes a remote possibility ,as there is cut in wages.. Spending also loses its glamour , as there is no or less money in hand.. The chain of vicious sequences, right from wage cut, mortagage , saving , spending , illustrate the regiment we are in.  

The economy will be levelled before this year is out. This is the prevelant hope .But the thorn in the bush is the rising unemployment. Stabilising the economy is a welcome step indeed. But ,creating jobs , is most imminent , to resurrect  the dangling economy. If this not given acute attention, then there is all pssibility of the economy taking a reverse course.

Nations should direct their steps to stimulate the economy, by augmenting jobs, by diffusing stagnation and arresting deflation.

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State Bank Of India -High And Dry


The influence of State bank Of India , though for negative reasons, is so deep , that I am finding it difficult to wean away from it.

Royalty brings with it grandeur. Massive enormity forces us to give respect. Extensive reach enables us to admire. The core activities make us realise the vitality. The powerful interaction leads us to ease. The flow of wealth renders us awestruck. This is the normal consequence of anything true and great.

State bank Of India , to many like me , presents a not too  affable experience and an infuriating reminiscence. The attitude towards the constituents is animosity. The sanction of loan is subjected to unusual tardiness. The facilities are split, broken , and delivered in fragments. The assurance from the customer is verified, , crosschecked , scrutinised umpteen times. But their confirmation , is a dangling dilemma, concurring to the notifications.They take much, but disburse little. While processing the loan,they  pose to perform undue  caution, enacting lot of fuss, impelling extra stress .

Gaining entry into the portals . is a strain irrespective of merit and genuinity. I took pride ,when I became a constituent of State bank Of India , twenty years back. But , I regretted  this step  , after a few months of my dealings. The  accessibility was so difficult. Every small references has to be sent to the Local head office. The Branch , the Regional Offices are a dummy existence. A wholesome expense is met in maintaining such inert offices which are under spineless officials, who  find safe hideout in the omnipotent Local Head office.

The General Managers ,  are tied up  with issues , that they are hard pressed for time. The Presidents and Prime Ministers, of nations, meet people, hear their grievance , in the midst of heavy schedule. The high up officials  of this bank , have no free time to  lift their head to acknowledge a person. Such is their busy work out.  It seems that tough programmes enforced to take major policy decisions  make them unapproachable.These pretensions are amusing

 In places , of worship, in venues of  exhibitions , in areas of public meetings, the entry is difficult but the exit will be easy . But, in State Bank, getting into it is tedious. Getting out is alarmingly painful . The strength , the valour, the tolerance, the  money , all get sucked up . The customer is a skeleton of his self , both physically and in spirit.

  Gandhiji  has said, that for any business to thrive the customer is important.It is the other way round in State bank Of India.

 

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State Bank Of India’s Pathology


 

My nineteen years interaction with The State Bank Of India , prompts me to do a research on its abnormal behaviour. The structural pattern of the  bank , may look extremely  solid  and very strong, but in actuality is full of  eccentric porous  and very weak. The functional procedures ,may appear grand and highly disciplined, but in reality is flippant and extravagantly  chaotic.

Pathology is a medical speciality.It consists of anatomical ,clinical, forensic, veterinary, and plant studies.The pathologists are physicians ,who diagnose and characterize disease in living patients by examining biopsies or body fluids.

State Bank’s pathology  is a financial speciality. It considers the credit worthiness, background ,requirement, potentiality .  capacity of the creditor. The appraisal officer , conducts a thorough survey of the intricate details and ratifies the proposal.This is the original worksheet and a normal spread out of any financial institution  But  State Bank has its own formulas. Anomalies and  infringements creep in. The financial pathology undergoes a change. The identities reveal a catch. There is no thumb rule, in extending loan.The extension is lengthened  to high flung industrialist. The limit is curtailed to humble upcoming entrepreneur. The imposition of regulations vary according to specific norms ,formatted by the Committee.  No official takes up the responsibility for the alarming discrepancies.  They place  the claim  on the committee.This proves to be a peculiar significance.

What is a committee? It is basically a group of people officially delegated to perform a function , such as investigating,considering, reporting  or acting on a matter.The committee has on board ,human beings  with life and blood. It does not comprise of demigods, who descend from the other world,who are unaware of the idiosyncrasies of the commercial and industrial genre.Unfortunately , the Committee behaves in a quixotic manner , completely irrelevant to the day to day progressions. It also succumbs to pressure and acts  in a perplexing autocratic deviation

.Medical pathology facilitates treatment , by making a serious attempt to acquire knowledge  related to human disease.

State Bank Of India’s  pathology obstructs  prosperity  by creating a series of harassment  to diffuse  stoicism  leading  to cutomer’s  extinction.

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State Bank Of India’s Lexicon


Compiling  a wordbook is a tremendous task. A lexicon consists of the vocabulary of a particular language, persons,field, social class,etc. State bank Of India , has formatted a beautiful glossary of terms pregnant with meanings , connotations and latent inferences , which could be understood only by its officers. The interpretation of the terms are entirely  mind blowing . Never would have anybody , with the reasonable level of education, and a rational degree  of comprehension , accept the indications of the reputed bank’s presentation, nor would have thought or more so dreamt of the definitions of certain common phrases and terminologies.

The experience , I  am having with this presitigious bank , would make anyone spellbound and speechless. Such are the whims and fancies of the officials. A two and half a year back , I got a statement from the branch , of which I am a constituent, that there is no due in my  company’s loan account. This , unobtrusively , I procured to finalise my company’ s balance sheet. Well, the job was done .  The filing of returns and other routione check ups were accomplished by my auditors.So far , so fine.

The gigantic Bank , the biggest in Asia, came with a powerful thunderbolt . almost as massive as its size, calling me to pay further amount, a lumpsum , saying I have not repaid to the ” Full satisfaction ” of the Bank.The penetration has created a dent in my complacence. I fumed ,I shook in  anger.What is their intention?What do they want from me?More money, more money. more money.Where to get? How to get?Why should I pay?. My ramifications  have fallen into deaf ears.This is a typical illustration of their inventory of words. Many more  are there to prove my point, but I restrain myself from exhibiting this one vital concordance.

The lexicon of State Bank Of India,is a worthy contribution to society in general and to the financial institutions in particular. The dictionary is an asset to the world.It should find a place in every library .

Kudos to State Bank Of India .

Long Live the Officials.

May their tribe increase.

God be with them

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Latitude And Longitude Of Debt.


Earth is essentially a sphere. It is a habitat of mortal life.

The geographical coordinates  are called latitude and longitude.

This is an indulgence unfamiliar, leading to a comparative study of earth and debt. The  imaginary lines , around the planet Earth, reveal the intricacies of the earth’s formation  and location of a place. The lines of the financial are cynically  dubbed as latitudes and longitudes, in this post  throw extra  focus on the intrinsic value and the status of the constituent.

Debt  is an amount owed to a person or organization. It is an obligation to pay money under an implied agreement.

Latitude,  geographically is measured from the equator . It measures the angular distance between the equator and points North and South of it on the surface of the earth. It is attributed with positive values going North and negative values going South.

The financial latitide  ,is measured from the debt. At present , the positive results are apportioned for the  elite and snobbish.. The negative points are set apart for the sincere and modest .

Geographical longitudes  are meridians , which run perpendicular to lines of latitude,and all pass through both poles.A degree of longitude varies in size.It is approxomately 69 miles at  the equator. At 45 degrees it is 45 miles .It is zero near the poles.The degree and size of longitude  are in direct ratio to each other.

Over to the financial debt as of now, the quantum and power are in direct ratio to each other. The richest is the most eligible suitor. He can stretch his facilities to  any extent. His money power facilitates him to dictate terms, negotiate rates, dictate tenure , overide policies and overstep procedures.

As degrees of latitudes and longitudes can be further subdivided into minutes and  seconds geographically , the financial lines  can be classified as wilful and genuine defaulters.The notations geographically allow us to locate places quite precisely. The coordinates in the debt ratio help us to identify the regular and the irregular, the fraud and the sincere, the exaggerated and the exact , the pretension and transparent.

This attempt may appear slightly out of range and  an unrelated study. Getting deep into it we  can draw many interesting analogies , fine comparisons and similar surveys.

Geography is a science ,which deals with description, distribution and interaction of the diverse physical, biological,and culturl features of the earth’s surface. Financial  debt is a discipline , which concentrates on variables of  funds, risk and fair valuation.

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State Bank Of India- Imperialism


The three presidency banks, Bank Of Bengal, Bank of Bombay and Bank of Madras,were reorganised and amalgamated to form a single entity  The Imperial Bank Of India on 27/January/1921. On 30/April/1955 ,it was christened as State Bank Of India.

Imperial is royal, autocrat, and sovereign. The State bank Of India, continues to be authoritarian and arrogant, very much akin to its previous name. Names , give out the person’s character. I am an active thinker,and do not succumb to common beliefs and superstition. But , the audacity Of this biggest bank in Asia , persuades me to endorse the view.

Its officials react  with unbelievable haughtiness,treat the constituents with unexpected  superciliousness and behave with superiority. They seem to be o overbearing and force us to feel that they are demi gods.

The stateliest bank has prescribed its own code of conduct.Its evaluation varies from customer to customer. A constituent with millions  as overdue ,gets a Kingly  reaction. He is cajoled, coaxed and placed in a pedestal. He is   a Royal non performer, since he has faltered to pay   hundred millions- a paltry sum , according to the bureaucrats of The State Bank Of India. The genuine small time customer,who has fulfilled ,his obligations, but met with a short fall of few lakhs , is meted out with bashful arrogance.The candid customer , has repaid the small amount after three months The proud officials of the lofty bank come out with incognito loopholes,  incoherent policies, unjustifiable prologues. The ire of the straight forward management will land the presumption and superiority of the bank in a congruent predilections.

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Infosys Too


Infosys falls short of expectation. There are no exceptions to this economic recession. The dogma every rule has an exception, has proved false.The downbeat is remarkable. The earnings per share has dwindled.The operating margins have slipped.Revenue for the year would fall.

The dependence on outsourcing gave an unexpected prosperity to the Information technology in India. There was a belief that Information technology was the sunrise indudtry of the world. There was a mad rush to computer engineering, computer applications  in colleges, pushing behind conventional subjects like civil, mechanical and electrical.

The boom was unprecedented. The salary and perks for these outsourcing professionals was amazing .The engineers  earned in lacs. The sudden spurt in economic setup, made the young very tall . They disregarded  discipline, set aside the principles and marched towards lavish spending deriding modesty.

The other professionals were not recognised by the crowd. The age old vocation like medicine , auditing,law , and teaching were thrown into darkness. Their remuneration was not in parity to fresh upstarts. A decade of glory is slowly drawing to a close. The bubble has bursted, The high style has to embark on humility.

The major Information Technology companies have not given out  rosy results.They are wallowing in unforeseen trouble. The Satyam episode has cracked down the faith in them.

It is time for these big outsourcers to think differently. They have to deviate from this cult and etch out a living of their own, How long can they rely on other countries?  It is colonisation in a subtle way. We , knowingly or unknowingly, have subscribed to the fancies of U. S and other European countries.

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Satyam Auctioned.


The fraud hit  Satyam has been auctioned. The successful bidder is Tech Mahindra.The most eligible suitor Larsen & Tu bro , backed out  of the fray.

Tech Mahindra  will pay 58Rs per share for a 31% stake and buy 20% from investors for the same price.Wilbur Ross offered Rs 20 and L&T Rs 45.9.Tech Mahindra has made a bold move. It has to act swiftly and consolidate Satyam in four or five weeks to gain from the purchase.The scandal tainted Satyam , does not appear attractive , as it is encumbered by potential liabilities from investors, lawsuits in the U.S  and the lost reputation.

The business of Satyam is in doldrums, as it has lost contracts from 46 customers. On March 23 /2009 the United nations h as terminated its contracts. The largest auto insurer fro U.S has cancelled its order.Satyam has lost 300 of its employe. Tech Mahindra has taken a calculated risk by paying a handsome  price.

Tech Mahindra may gain$1Billion revenue from this acquisition.The winning bid has to be approved by the company Lw Board, and the approval will be through n 2 or 3 days.

The thousands of employees of Satyam, the investors and customers who stayed on through  stake sale will heave a sigh  relief.

Satyam saga was baffling. Its rise was meteroic, its fall was still more impressive.Impresive may sound a bit odd at this context, but the brilliance of its fall and the terrific rigging by its founder was dazzling. The powerful emanation of its slander blindened the eyes, the resounding noise it created deafened the ears, and the massive manipulation paralysed the body.

The acquisition is  mode of resurrection to Satyam .

Satyameva Jeyathe  -quoths the Upanishad, which means  Truth  alone is triumphant.

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Paradise Lost.


Milton epitomises man’s disobedience and the loss of Paradise in his epic poem “Paradise Lost”

Satan revolts from God and draws with him a legion of angels. God drives him out of Heaven along with his crew and places him in the great deep hell.It is a place of deadliest darkness and utter chaos.

“Of man”s first disobedience and that fruit

of the forbidden tree,whose mortal taste,

Brought death into the world and all our woe.”

Milton”s Paradise Lost is being enacted by Modern Bankers.

The banking community was in an enviable status before 1930.Financial empires were built on strong fundamentals. Certain banks were based on fraud . The competence of the bankers , their influence in the society, their high ideals ,placed them in a pedestal. The profession was regarded as  a  fine vocation, with promises of lucrative  remuneration and resounding success.

During depression , the  banking system envisaged a great fall . Regulations were set in. It came under tight ropes. It became a less interesting profession. Bankers shied away from liberal lending.This period of severe security saw a rise in economic  prosperity. The growth was spectacular .

In the late twentieth century, again Banking had a radical transformation. The liberalisation found its existence. There was an enormous activity, hustle-bustle,and the industry exploded.

Anything above normal, anything exceeding its capacity, anything that is over exposed comes to a stunning halt.The recession has  set across, the meltdown  has sidelined the  industrial progress,has effaced trade priorities.Currencies have slided down,,commodities are fastly going up and  hastily. falling down . Banking has become a boring industry says Paul Krugman..

Banking ,like Satan , has pulled with it a legion of other industries and trade into an abysmal darkness. Satan tried to mend his ways to restore Paradise.The Banking sector should deliberate upon a serious financial reform to regain its fiefdom.

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The Lethargy In You.


I was dozing in my lounge, when my maid’s call brought me to an awakening state. It unusually, was not only a physical wake up but also a  mental resurrection. Recently , I am prone to  light refreshments like getting a short nap ,then and there , as often as possible,since there is nothing compulsive to keep my physic and mind active, I am slowly stepping into old age ,a little prematurely .

The renaissance of today ,is that I gave a mild thought to the happenings of the daily chores ,both domestic and external. The slight interference took a chronic level in my analytical pursuit.My mind got over the languishing  strain  by cooperating with my heart’s application.

The putting off attitude in us, the sustaining aspect of procrastination in us, and the slowing down of quick assumptions , paralyse our work culture.

Taking up the case of domestic passage, I wanted to give a face lift to my house and garden , by adding certain infrastructure that were not available ,when the house was built. As every normal human, I made a series of inquiries as to the product availability. I gathered every detail and compiled my survey  in a file, neatly indexed and tagged. I left  gap, of a year, I do not know for what, but now I conclude. it is purely due to lethargy . After a year, I set myself on the task, the materials I wanted , have disappeared from the market and there was a fresh bunch of new products , of which I am an illiterate., in the sense I am not aware of its usage.

Coming to the external assumptions, the Indian lethargy is explicitly revealed in its policies. Take for instance , the construction of roads, the Golden quadilateral ,which is being on for nearly five years. The project is going in snail’s space. Before it reaches Midway, the initial work loses its credibility. The originating road , which was in exact condition  few months back ,has  developed  bumps and potholes, and falls into the category of  bad roads. The half way traverse is rendered unfit for travel. The purpose gets defeated. A three hour flight from hence, we find excellent roads in Malaysia , which I feel is the best in whole of Asia.Why this default?

Before we think of expanding certain infrastructure, the proposition becomes obsolete, and outdated. The slow decision in us makes us a drawling , feeble, demure mortals.

We miss the bus , not once or twice but always. We reconcile ourselves , saying that destiny wants it that way , so it happened thus. A concillatory domain is an antithesis to prosperous enlargement.