Globalization And Impact On Indian Banking Sector Finance Essay

Globalization And Impact On Indian Banking Sector Finance Essay INTRODUCTION PREVIEW This is an introduction chapter which describes the structure of the dissertation. It begins with a brief introduction to the area of research, purpose and aims and objectives set for this research. This section also includes justification for selecting banking sector to study the impact of globalization for this study. 1.2 INTRODUCTION A bank is a licensed body by the government which is primarily engaged in the process of borrowing and lending money which in turn helps in economic development of the country. The customers of a bank are mainly households government, public/ private corporations who invest and borrow funds from these institutions. Banks have a monopoly in creating credit in the market. If companies are provided with finance, it encourages enterprises which leads to increase in production, leads to promotion of jobs, less reliance on foreign imports. If personal customers are provided with finance it would stimulate the demand for goods which then leads to an in increase production of goods. Therefore banks play a very important role in the economic development of the country (Cox 1983, pg2-4). Initially there were many barriers in the banking sector through out the world. These were lack of information about foreign companies, tax liability which was applicable to income earned from these transactions, cost of executing international transactions were expensive. Regulations were eliminated in 1980s and early 1990s. Government allowed privatization in 1990. Government owned firms were sold to individuals, trading of stocks of firms was allowed publicly. This led to globalization, deregulation and liberalization. Under the influence of globalization Internet and telephone banking, ATM, credit and debit cards and many other services provided by the banking sector were introduced which has increased the efficiency of banks and has brought the banking revolution( Madura 1995, pg-7 ). Globalization has led to a revolution in the banking sector though Indian banks stiff face severe challenges . This study will highlight these challenges and the researcher will also suggests some of solutions found in the literature to overcome these challenges and will co-relate solutions found through primary research. This will help in understanding the Indian banking sector in dept. In addition to this if the Indian banking sector overcome these challenges it can mark its place with other leading global titans. 1.3 RESEARCH AREA To examine critically the impact of globalization on Indian banking sector highlighting the challenges faced by the Indian banks is the primary focus of this research. Since the days of Bretton Woods era financial world has witnessed tremendous changes. Technological change and cut throat competition has enforced the financial world to adopt better techniques and attract customers. The range of products and services were limited in the 70s(Raul 2005, pp 39). After gaining independence in 1947 Until 1991 there has been regulations like administered interest rates and government control etc. upon implementation of recommendations by Narsimha committee led to rapid and radical changes. Now the banking sector offers wide range of services like securitization, leasing and hire purchase, custodial service, depositories , factoring etc. New financial institution, dis-intermediation, greater professionalism and technological innovation have emerged as a result of liberalization, privatization and globalization. In addition to this capital adequacy norms, income recognition and assets classification were introduced in the ambit of banking activities and banks are compelled to cope up with the process of deregulation, competition, asset liability management and globalization(Raul 2005, pp 39). 1.4 AIMS AND OBJECTIVES The main aim of this research work is to analyze critically and examine the concept of globalization and its impact on the Indian banking sector along with and challenges which arise as a result of globalization. The researcher also aims to find out the adverse effect of these challenges and what measures can be taken to reduce them. Research question A study on the impact of globalization on the Indian banking sector highlighting the challenges faced by the public sector banks in India. The main objectives of this research are as follows:- To examine the the challenges faced by the Indian public sector banks with regards to technology, human resource, customer service , NPAs. To analyze and explore the potential solutions to overcome these challenges. 1.5 PURPOSE OF THE STUDY Indian banking sector is resilient and has shown tremendous growth yet it faces many challenges which needs to be controlled and managed. Recently there have been waves of bank failures throughout the world. Banks became insolvent due to which there was financial downturn globally. Banks are highly volatile in nature and have a direct impact on the economy of a country. So every country should aim to make their banking system stable and sound only then they will be able to withstand the shocks. Many changes have taken place in the Indian economy since 1990s that has revolutionized and revitalized the Indian economy. During this phase the key growth sectors and consumer demands have undergone a series of changes. The researcher is keen on investigating the impact of changes with respect to banking sector. India is a developing economy there lies many areas in the Indian banking sector to be explored also this is an untouched area in the UWIC. All the above mentioned points motivated the researcher to study in detail about the Indian banking sector, impact of globalization on it, and challenges arising as a result of globalization also highlighting potential solutions. This piece of work can provide guidance or a framework for other developing countries which are also facing similar challenges. Moreover ,The researcher is a permanent resident of India and would be able to gain access or conduct interviews of the bank managers to retrieve information which would further form a basis of research. 1.6 JUSTIFICATION FOR THE RESEARCH ROLE OF UBLIC SECTOR IN BANKING Anglo Saxon and Asian model are the two models of ownership by the banks. Many developed countries have adopted the Anglo Saxon model. Under this model the key decisions are taken by the top executives independently dictated by short term requirements and regulations may not be stringent .The latter model is adopted by many developing countries like India . India has a financial system which has substantial ownership by the public sector and has a different structure of incentives for the top executives. It is more likely that in this model where more complex products are involved there is less financial innovation . thus this sector is likely to be less efficient and less innovative but would be more steady. The advantage of this sector during the time of crisis is the perceived sovereign backing. While the former model during crisis came under pressure whereas the later model like the presence of public sector made the Indian financial system sound and stable. It was evident from t he fact that during 2oo8 and 2oo9 foreign and private sector banks NA ratio increased significantly and as an after effect of crisis , the public sectors NA ratio declined. It was lowest amongst all bank groups. For the Indian Banking sector , the public ownership has proved to be a source of strength rather than weakness. On the contrary to the belief that public ownership weakens the efficiency of a firm does not stand true in the case of the Indian banking sector. RBI organized an analytical exercise which indicates that cost and technical efficiency of the public sector banks have been much higher than private and foreign banks in India recently. Moreover public sector banks key role played by the banks is social development and to meet the objectives of developmental finance which is very essential for a developing economy like India. public ownership plays a significant role in the economic development of the country. (RBI 2OO7 2OO8 , pp 22 In addition to the above mentioned reasons the main motive of the researcher to highlight the challenges faced the public sector banks was because if these banks overcome their challenges they can mark a place for itself with the other leading banks. 1.7 STRUCTURE OF THE STUDY This dissertation is divided into five chapters which are as follows:- Chapter 1- This is an introductory chapter. It highlight the aims and objectives; purpose ; justification of the study. This chapter explains the structure/body of this dissertation . Chapter 2- This chapter forms a base/ platform for this dissertation. It consists of ideas and opinions put forward by scholars and different authors who have successfully researched on this field. The researcher has critically reviewed the literature also highlighted the key issues, ideas, arguments by different authors. This chapter mainly covers globalization , its characteristics, theory of globalization, Indian banking sector and challenges faced by the Indian banks. Chapter 3- Primary focus of this chapter is on the methodology adopted for this research. This will include the research design, data collection methods, research ethics, validity and reliability. It also includes limitations of this study. Chapter 4- This chapter explains the analysis of the data/information gathered . Interviews and questionnaires are critically analyzed to give a clear picture about the study. Chapter 5- The previous chapter of data analysis enabled the researcher to draw conclusions and provide recommendations which is described in this chapter, along with the research findings and research area which the researcher intends to cover and undertake next year after successful completion of this research. 1.8 SUMMARY This chapter explicitly explains the structure of this dissertation along with aims and objectives set up for the study by the researcher. It also explains about the research area, purpose and highlights the reason for selection of banking sector in Indian to study the impact of globalization.

Attkins: Hoax or Legitimate Diet? Essay -- Health Nutrition Diet Exerc

Attkins: Hoax or Legitimate Diet?  Ã‚  Ã‚   I will confess I had dismissed Atkins as a total hoax, especially when my mom’s fifty-three-year-old friend developed serious osteoporosis, after a few years on the diet. Now, having researched the Atkins diet, I've learned there is a lot that's positive about Atkins' approach. Still, I'm convinced there are better ways to get the benefits of Atkins without its downsides. As you're undoubtedly aware, Dr. Atkins' basic premise is that we've all been eating too many carbohydrates, especially refined white flour and sugar. â€Å"If you Replace most of those carbohydrates with more fat and more protein†, says Atkins, â€Å"then you'll lose weight.† However, contrary to popular opinion, Atkins is not a "no carb" diet. Even in its strict initial "induction" phase, Atkins allows three cups of salad greens or two cups of greens plus one cup of chopped non-starchy veggies like broccoli or red peppers. You must remember fruits and vegetables are carbs! Gradually anyone on this diet is suppose to increase their carbs in their diet until they discover their individual Atkins Carbohydrate Equilibrium (ACE), which is the level of carbohydrate consumption at which you will not gain weight. It is factual that much of the rise in American obesity and diabetes can be pinned on our enormous consumption of refined carbohydrates. A person’s body turns carbohydrates into glucose (blood sugar) to fuel your body. Intaking too much glucose too quickly your body will be overstrained; your pancreas must extract excess insulin to rush the excess glucose out of the blood stream, and into your fat cells. If you eat fewer carbs or limit yourself to whole unrefined carbs that tr... ...beneficial in the context of a low-carb diet. This seems risky and still unproven to me. I think that it is better to just eat good, healthy food. If you cut all the processed junk from your diet, you're left with a huge, delicious universe of whole foods like fruits, vegetables, whole grains, poultry, fish, legumes, eggs, nuts, and seeds. You can lose excess pounds and maintain a healthy weight by simply eating the good stuff and exercising; without getting excessive and counting each and every carbohydrate, gram, and calorie. I will confess I was biased and had dismissed Atkins as a total hoax. Now, having researched the Atkins diet, I see that many people have benefited from the diet. I see that there are a lot of benefits about Atkins' approach. Yet, I'm still convinced there are better ways to lose weight without facing Atkins downsides.

Rikki Tikki Tavi Theme

Theme is a big idea we take away from a story after reading it. In the short story, â€Å"Risk Tick Davit† by Rudyard Kipling, the primary theme of the story is the Idea of good versus evil. Above all, Risk's character represents good, and the cobras In the story represent evil. In Dalton, another possible theme for this short story could be courage versus fear. By and large, the story contains action and dialogue that helps us determine what the author wanted to reveal about mankind. Body Paragraph 1Risk = Good Explain each characteristic of Risk's through summarizing and quotations. Protective courageous loyal Kipling develops the character of Risk to represent the good in our world. Though Risk is somewhat of an underdog, he demonstrates protectiveness, courage, and loyalty. Risk's protectiveness Is evident at the beginning of the story when he went to bed with Teddy, the young boy. He was awake on the pillow as Teddy was sleeping. Teddy's mother didn't like it, because she thought Risk might bite Teddy.But Teddy's ether explains, â€Å"He Is safer with that little beast than If he had a bloodhound to watch him. † Rural was motivated to protect the family because he wanted to live with them. Courage was a trait Risk showed several times throughout the story, but when Nag came into the house through the sluice, he became very frightened when seeing the size of the big cobra. At that point, Risk began to reason and ask himself questions about what he should do. Then he says to himself, â€Å"It must be the head, the head above the hood; and, when I am once there, I must not let go.Though he was afraid, he showed courage and never gave up even during the toughest battles. When Rural Interacted with Dare, he discovered that the tailboards were miserable because one of their babies fell out of the nest and Nag ate him. Risk demonstrated loyalty to his friends by standing up to Nag, the big black cobra, and asking him, † Do you think It Is rig ht for you to eat fledglings out of a nest? † This loyalty helped him gain hero status with Dare and his wife. Body Paragraph 2 Anglia = Evil selfish 1 OFF determined Body Paragraph 3Alternate claim Courage vs.. Fear Risk = courage Schnauzer = fear Conclusion: Kipling used the theme of good versus evil to help us think about what this means for mankind. When we demonstrate protectiveness, loyalty, and bravery we make life better for others not Just ourselves. If we are selfish and threatening, and our only goal is survival, then we aren't contributing and making the world a better place. In conclusion, we learn that our focus in life should be to think about others before we think of ourselves in order to make a difference in the world.

The North American Free Trade Agreement (NAFTA) - 1345 Words

The North American Free Trade Agreement (NAFTA), came into effect on January 1, 1994, creating the largest free trade region in the world, generating economic growth and helping to raise the standard of living for the people of all three countries participating. By strengthening the rules and procedures governing trade and investment, the NAFTA has shown to be a great base for adding to Canada’s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. NAFTA was designed with many economic results in mind. Hopes were that not only trade would be easier, cheaper, and easier for all countries involved, but economic wealth and growth would follow. The support for NAFTA was spilt among the†¦show more content†¦That created a lot of pay cheques in Canada.†(Marville) Trade of commodities is not the only thing that has grown in response to NAFTA as Canada also has benefited from an increase of trade in services. In Canada, NAFTA has helped to increase the imports of goods over the past decade in these fields: machinery and equipment, communications equipment, and automotive equipment. This has caused Canadas automotive industry to have a noticeable rise, allowing the economy to increase positively. Exports of goods from Canada have also grown significantly. Example being, in 1998, the increase in Canadas exports to the NAFTA regions was approximately equivalent to the entire value of our exports to Japan and to the 15 nations of the European Union combined. These simple statistics can easily show how the North American Free Trade Agreement has impacted the imports and exports to Canada positively. (Rolf Mirus) Canada has benefited directly from NAFTA as every one in five jobs are in linked to international trade. 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