Banking and Finance
Universal banking, for whom?
HARMONISING the roles of banks and development financial institutions (DFI) was the theme of a workshop held at a recent premier academic institution. In the current context, harmonisation implies the introduction of universal banking (in a limited sense
), wherein the DFIs could become banks and inter-mediate in the short-term end of the financial market; and commercial banks could enter the long-term end of the financial market.
Economy
Report of the Eleventh Finance Commission - I : Missing the equity goal?
The Eleventh Finance Commission has provided for the distribution of about 34 per cent of Union taxes and duties to the State governments. But it has drastically cut down the potential and even actual shares of a number of States in the name of equity.
The Commission also seems to have bargained for huge inflation, which is the outcome of the non-fulfillment of certain crucial assumptions, says P. R. Brahmananda.
Editorial
Merger moves
THE RECENT MOVE by four NBFCs -- Apple Credit, Apple Finance, Alpic Finance and Srei International Finance -- to ``explore the possibilities of a merger'' may give the impression that an era of mergers and acquisitions is upon the sector. The parties say
they intend to consolidate because of the declining margins.
Miscellaneous
`Prosperity without faith is not enduring' -- His Holiness Sri Jayendra Saraswati of Kanchi Kamakoti Peetam
For a religious leader with an abiding concern for the spiritual well-being of his followers, His Holiness Sri Jayendra Saraswati of Kanchi Kamakoti Peetam, has strong views on economic issues as well. He is no liberaliser in the classical Manmohan Singh
mould. Not for him is the new-found enthusiasm for opening up the Indian market for overseas competition, nor is he a great fan of the big industry. A focus on agriculture and rural industries and other means of exploiting the rich bio-diversity of the
nation is his prescription for India's future prosperity. These sentiments come through very strongly in a free-wheeling interview he gave Business Line on Monday.
Lighted fuse?
THE RECENT overthrow of the legitimately elected Government in Fiji, solely on the ground of its being led by an Indian Prime Minister, has rattled Indians overseas. For weeks, chat rooms and e-mail networks were choked with questions of the I
ndian Diaspora round the world: Is this a lighted fuse? Has the bell begun to toll for Indians living in other countries? How to safeguard their interests?
Escape routes
I HAVE been watching a lot of sports on television lately. I cannot bear the news. There are too many crises going on at the same time and most of them look insoluble. Or if not insoluble, as long running as any soap. I know, a week from now, nothing wil
l have been resolved. I am not even certain there are resolutions. A 100 years from now, they will still be occupying our attention.
