BANGALORE

V/S

NBFCs in microfinance sector as NBFC-MFIsPg 1

CLASH OF TWO WHEELERTITANS

Bandhan of USD 333 millionPg 6

A FINANCIAL NEWSLETTER FROM CUIM KENGERI

DATE : 5 FEB 2011ISSUE 10

RECOMMENDATIONS OF MALEGAM COMMITEEON MICRO FINANCE INSTITUTIONS (MFI) SECTOR:

“I don't want to do business with those who don't make a profit, because they can't give the best service. “ -Lee Bristol

Madhav A1020118 SEC-B

i c ro f inance i s an economic development tool in the economy Mwhose objective is to assist the poor to

work their way out of poverty. It covers a range of services which include, in addition to the provision of credit, many other services such as savings, insurance, money transfers, counseling, etc.All NBFCs are currently regulated by Reserve Bank under Chapters III-B, III-C and V of the Reserve Bank of India Act with no separate category to NBFC in Microfinance sectorMALEGAM Committee proposed a separate category for NBFCs in microfinance sector as NBFC-MFIs. To qualify as a NBFC-MFI, it should be “a company which provides financial services pre-dominantly to low-income borrowers, with loans of small amounts, for short-terms, on unsecured basis, mainly for income-generating activities, with repayment schedules which are more frequent than those normally stipulated by commercial banks”.

Some additional qualifications to become NBFC-MFI are: a) The NBFC-MFI will hold not less than 90% of its total assets (other than cash and bank balances and money market instruments) in the form of qualifying assets. b) There are limits of an annual family income of Rs.50,000 and an individual ceiling on loans to a single borrower of Rs.25,000 c) Not less than 75% of the loans given by the MFI should be for income-generating purposes. d) There is a restriction on the other services to be provided by the MFI which has to be in accordance with the type of service and the maximum percentage of total income as may be prescribed. The report said that bank's lending to NBFC-MFIs will be entitled to “priority lending” status. Depending on interest chargeable to the borrower, Committee has recommended an average “margin cap” of 10 % for MFIs with loan portfolio of Rs. 100 crore and 12% for smaller MFIs and a cap of 24% for interest on individual loans. As a measure of transparency, MFI's can levy only three charges, namely, (a) processing fee (b) interest and (c) insurance charge. The committee has made recommendations to decrease the problems of multiple-lending, over borrowing, ghost borrowers and coercive methods of recovery. They are: A borrower can be a member of only one Self-Help Group (SHG) or a Joint Liability Group (JLG) a)Not more than two MFIs can lend to a single borrower b)There should be a minimum period of moratorium between the disbursement of loan and the commencement of recovery c)The tenure of the loan must vary with its amount

d)A Credit Information Bureau has to be established e)The primary responsibility for avoidance of coercive methods of recovery must lie with the MFI and its management f)The Reserve Bank must prepare a draft Customer Protection Code to be adopted by all MFIs g)There must be grievance redressal procedures and establishment of ombudsmen All MFIs must observe a specified Code of Corporate Governance For inspecting operations of MFI, a four-pillar approach with the responsibility being shared by (a) MFI (b) industry associations (c) banks and (d) the Reserve Bank is suggested. In report Committee has recommended that entities governed by the proposed Act should not be allowed to do business of providing thrift services. It also stated that NBFC-MFIs should be exempted from the State Money Lending Acts and if the recommendations of the Committee are accepted, the need for the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act will not survive. The Committee has cautioned that in the action of protecting borrowers, we should also look upon the recovery culture of the borrowers. Without this the fresh flow of funds into the MFI gets evaporated & ultimately pushing the borrowers into much trouble. So there should always be a balance between the borrowers & lenders with balanced system.

Members of MALEGAM committee:Ÿ Chairman: Y H MALEGAMŸ Kumar mangalam birlaŸ K C ChakrabarthyŸ Smt. Shashi RajagopalanŸ Prof. U R RaoŸ V K Sharma

1

Repo rate : 6.50%

Reverse repo rate : 5.50%

Inflation as on 27th January 2011:

Food Inflation : 15.57%

W.P.I. : 8.2%

Forex Reserves as on 14th January 2011: $297.41 billion

Total External Debt (as on quarter ended Sep 2010):

$295.847 billion.

IIP as of quarter ended: 317.9

15-91 day's T-bill: 7%

CRR: 6%

SLR: 24%

10 year g-sec yield: 8.2% (January 2011)

Exports during Dec: $22500 million

Imports during Dec: $25130 million

ECONOMIC INDICATORS

“An economist is an expert who will know tomorrow whyt h e t h i n g s h e p r e d i c t e d yesterday didn't happen today.”

-Laurence J. Peter

Prateek lakhmani1020224 MBA - C

2

COST EFFECTIVE ERP FOR MANUFACTURINGSECTOR

“As a small businessperson, you have no greater leverage than the truth. “ -Paul Hawken

Jojode Karthik, MBA-A 1020016

Business and market constantly must meet new challenges, and it requires a solution that is scalable, adaptable and one that integrates the enterprise. Enterprise Resource Planning is one such solution which employs latest technology and proves to be cost effective in the longer run for users of manufacturing sector.Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this activity with an i n t e g r a t e d c o m p u t e r - b a s e d application. Many good ERP solutions are available as SaaS. Thus it makes them very cost effective. Software as a service (SaaS) sometimes referred to as "software on demand," is software that is deployed over the internet. With SaaS, a provider licenses an application to customers as a service on demand, through a subscription which is also referred to as "pay-as-you-go" model. The biggest area of problem for any m a n u f a c t u r i n g e n t e r p r i s e i s fragmentation of information. ERP provides solution for manufacturing units by integrating all the functional areas of the enterprise in real time and information available to all. To work out a cost effective ERP solution for manufacturing unit the best way is to analyze the ERP solution and check out if it can work well for the enterprise at present. ERP solutions are not just used to automate the present transaction system in fact they are also required to improve business processes, remove bottlenecks of the system, resolve problem areas and enhance working of the enterprise. With change in manufacturing techniques, new products, increase in work force, inclusion of subsidiaries, increase in number of production units' application shall be able to adjust without customization at any point of

time. Purchasing an ERP solution is a long term expense. The management must check the cost involved in u p g r a d a t i o n , r e f i n e m e n t s a n d enhancements. If the ERP solution is not capable of handling these on its own or requires purchase of advanced editions then such ERP solutions will not remain cost effective in the long run.

ERP shall allow the managers to capture hidden market trends and upcoming changes which will eventually help in profit growth. Reduction of human intervention in processes like cross checking of purchases with goods receipt or implementation of policies and best practices etc. Enhancing the operations by providing latest options like e-commerce, management of web stores etc., better interaction with customers, vendors and conversion of leads into deals consequently increase profits which makes the implementation of ERP cost effective. Ideally a suitable ERP solution available as SaaS will be the most cost effective ERP solution for not only manufacturing sector but for any sector. If the solutions and features available in the ERP are suitable to the company and it will turn out to be a boon for managerial investment.

3

CLASH OF TWO WHEELER TITANSBajaj or Hero Honda

“Energetic action on debt would make a radical difference to the prospects of many of the poorest countries in the world, at no p r a c t i c a l c o s t t o c r e d i t o r countries. “ -Kenneth Clarke

Neha singh MBA–B1020151

increased to 17%, up from 10.5% at the end of fiscal 2008-09.While,Bajaj's volumes are rising steadily in the under-125 cc segment, with numbers going up by 115% last year (9.28 lakh units),Hero Honda saw a growth of 23% (40.55 lakh). The clash of the titans is getting more interesting. Aiming to cut down the growing market share of Hero Honda, the motto of Bajaj is to enter the major rural as well as semi-urban market share. The first move is to appoint more than 100 dealers in regions of semi urban and metros. Bajaj has currently 25 dealers in these areas. Bajaj is trying to redesign the distribution system to change the game. The new dealers will be functional from March end and for every 10 dealers, 6 will be in small towns. The remaining will be operating from mini metros. There will be a feature of loan extension in which customers do not have to provide any guarantee to avail the loan. Bajaj has introduced this great scheme on experimental basis in select areas. Moreover the entry of newer models would hit the existing dominating brands. It is unrealistic to expect continued dominance by one player indefinitely. Other players clearly have an opportunity to gain market share if they bring in the right product at the right price. And this factor favors Bajaj a lot. Moreover Problems between Hero and Honda Company can also influence the strategy. But the question is still same can Baja do it? One of the other days I was on a social networking site, where few bike lovers had a heated argument about the two companies. Few loved Bajaj for its innovation and pricing policies but few loved Hero Honda for their stylish look and services. It is very difficult call for non technical students like me to judge the best company among the two, but, as far as I am concerned I still like the song “Hamar bajaj” more than any other two wheelers advertising slogans

e all have read recent news about counter attacks of WBajaj auto on the Hero

Honda, which is at present market leader in two wheelers market. Bajaj recently completely stopped production of its scooters and thus brought an end to the historical magical word “Hamara Bajaj”, which was once the favorite jargon on every ones mouth tip. But now it is “Desh Ki Dhadkan” which shows how dominant are motorbikes of Hero Honda in Indian two wheelers market.But don't think this is a cake walk for Hero Honda because now Bajaj is ready with its new strategy to give a big fight to the former company. Bajaj has been regaining its lost ground after it did a u-turn and was forced to refocus on the 100cc segment. Bajaj's volumes were crashing miserably after it announced its intention to exit this segment. The new strategy appears to be working well for the company as its market share in this big-volume segment has been steadily increasing. The under-125 cc segment (mainly 100c) enjoys the lion's share of the domestic motorcycle market and commands 74% share of total industry sales. The segment is dominated by Hero Honda through its old 100cc warhorses Splendor and Passion models, while other players, including Bajaj, have mainly been on the fringes. However, Bajaj's decision to position its Discover model for this segment is yielding rich dividends. Numbers for 2009-10 show that while Hero Honda still dominates the under-125 cc segment, it has been losing market share to Bajaj Auto after the launch of the Discover 100cc in July last year.

.

Hero Honda's share fell close to 6% to 74.6% at the end of the last fiscal from 80% at the end of 2008-09.Bajaj's share

4

THE DANCE OF INFLATIONIt came, it saw and it conquered!! In the truest sense.....

Iti Mehrotra MBA -A1020046

t won't be news to say that India is in the grip of I

very high and ever soaring inflation. What is news is that all measures taken by our reverend s a v i o u r s o f economy, and the economic activity,

have proved to be futile against it! The poor man's food (read 'The Onion') has become the luxury of the rich. Soaring inflation and rate rises are starting to hit corporate margins in India, tempting more foreign fund managers to slash holdings in favour of markets that can better capitalise on the global economic recovery. With oil and food prices not seen easing in the near future, money managers reckon the exodus has some more months to run. With inflation remaining adamantly high, all eyes were trained on the Reserve Bank of India's Third Quarter Review of Monetary Policy. With wide agreement that speculation was playing a role in driving inflation, reducing access to credit and raising the cost of credit were seen as the among the means to rein in the price rise. Fiscal developments have also raised the importance of monetary policy.In the past, the principal response to inflation was a tightening of fiscal policy. This was because demand was largely driven by expansion in government expenditure. And when such expansion led to demand supply imbalances, the favoured solution (even when hurtful from a growth point of view) was a cut back in public expenditure. Much has changed since then. Fiscal conservatism has meant that government spending on capital formation and the social sectors have been substantially reined in. Expenditures are now largely directed at interest payments, the wage bill and other “committed” current expenditures. As a result, sharp cuts in expenditure are difficult to realise and enforce. In this era of fiscal conservatism, high growth has been driven by credit, which has come to play an important role in fuelling demand in the private sector, especially through housing investments, automobile purchases and a raft of other debt-financed expenditures. The RBI has indeed taken a small step in the expected direction by raising its reference, repo and reverse repo, rates by 25 basis points each. However, it has decided not to absorb excess liquidity from the system and reverse what has been an easy money regime.

To many, an adjustment in rates equal to a quarter of one per cent is at best a weak manoeuvre, given the magnitude of the inflation problem at hand. In analmost defensive justification of this half-hearted move, the press statement issued by the RBI's governor declares: “With the increases announced today, since mid-March 2010, the Reserve Bank has cumulatively increased the repo rate by 175 bps and the reverse repo rate by 225 bps. Additionally, the CRR was increased by 100 bps. Banks have responded to this calibrated tightening by raising their deposit and lending rates, suggesting strong monetary policy transmission.” The argument seems to be that since the RBI has done a lot in the past, a little at the margin is actually much. Unfortunately, what was done in the past has not worked, and there is no reason to believe that a small adjustment at the margin will make the difference.The RBI's reticence to tighten monetary policy is because it is under pressure not to reduce the flow of credit that is driving demand and keeping growth and profits high. Understandably, the corporate sector has been arguing against monetary tightening. Stock market speculators have turned bearish every time there are signs of a tightening of policy or when interest rates are even marginally tweaked. And banks, that have been riding the wave with a 24.4 per cent increase in non-food credit and a well-above 100 per cent credit deposit ratio over the last year, have been complaining about tight liquidity conditions. But what is

surprising is the government's support for a loose monetary policy.The dance is going on, the music continues to play. This January alone, foreign funds have pulled $900 million from Indian equities, Thomson Reuters data shows. This contrasts with the record $29.3 billion they pumped in last year. So a market that last year returned over 20 percent in dollar terms is down 8

percent this year.In times of rising inflation, this also means that the cost of living increases are much higher for the populace. With most of India's vast population living close to or below the poverty line, inflation acts as a 'Poor Man's Tax'. This effect is amplified when food prices rise, since food represents more than half of the expenditure of this group. The dramatic increase in inflation will have both economic and political implications for the government, with an election due within the year. It is no brainer that the need of the hour is to make inflation dance to the known tunes of the Indian economy not only for the sake of the corporate, the government or the upcoming elections but for the sake of the common. How and when would this feat be accomplished is the 'Big Question'!

5

BANDHAN FINANCIAL SERVICES “BANDHAN” WITH IFC

“We may not be able to offer long-term employment, but we should t r y t o o f f e r l o n g - t e r m employability. “ -Brian Corby

Gopu R S C Karteek MBA – A1020012.

he International Finance Corporation (IFC) is the investment arm of the World Bank Group (WBG) based in Washington DC. IFC promotes sustainable private sector investment in developing countries and shares the T

primary objective of all WBG institutions i.e to improve the quality of the lives of people in its developing member countries.Established in 1956, IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development primarily by:Ÿ Financing private sector projects and

companies located in the developing world.Ÿ Helping private companies in the developing

world mobilize financing in international financial markets.

Ÿ Providing advice and technical assistance to businesses and governments.

The International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance intended to alleviate poverty and promote open and competitive markets in developing countries. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, I F C ' s n e w i n v e s t m e n t s t o t a l e d U S D 1 4 . 5 b i l l i o n . Bandhan Financial Services: BANDHAN means togetherness, a microfinance institution (MFI) based in Kolkata, India. It was born in 2001under the leadership of Mr. Chandra shaker Ghosh, a senior Ashoka fellow. The main trust of Bandhan is to work with women who are socially disadvantaged and economically exploited, for their social upliftment and economic emancipation. Bandhan commenced group based micro finance in west Bengal in July 2002. As of 2011, it operates in 18 states in India with approximately 1,550 branches. It offers loans for microenterprises as well as for individuals to pay for health emergencies. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, Bandhan Financial Services reported a gross loan portfolio of USD 333 million, total assets of USD 424 million, 2.3 million active borrowers, return on equity (ROE) of 38.2 percent and return on assets (ROA) of 3.52 percent in 2009.International Finance Corporation will make an INR 1.6 billion (USD 35.1 million) equity investment in Bandhan Financial Services, India, to expand its operations in the country. The deal is reportedly the largest equity investment in an Indian MFI since the turmoil in the microfinance industry in Andhra Pradesh began in late 2010.The deal will reportedly help Bandhan expand its operations outside of the 18 states (Assam, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Maharashtra, Meghalaya, Orissa, Rajasthan, Tripura, Uttaranchal, Uttar Pradesh, West Bengal) in which it now conducts business. With the funding, Bandhan also aims to add to its product portfolio and establish better operating practices: an effect of the recent ordinances passed by the Andhra Pradesh government. In 2009, Bandhan received a INR 487 million (USD 10.7 million) tranche of capital from Small Industries Development Bank of India (SIDBI), an investor in the microfinance industry and other sectors that is based in Lucknow.According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, Bandhan Financial Services reported a gross loan portfolio of USD 333 million, total assets of USD 424 million, 2.3 million active borrowers, return on equity (ROE) of 38.2 percent and return on ROA of 3.52 percent in 2009.

6

THE CRB SCAM

“Profits are like breathing. You have to have them. But who would stay alive just to breathe? “ -Maurice Mascaranhs

Manish Santani MBA-A1020020

R Bhansali's web of deceit was elaborate. He had floated 133 companies to pull in funds and suck them out. Money came easy; he was inspiring with his grandiose plans, high interest Crates and entry into mutual fund

and banking. CRB's meteoric rise in the early 90s coincided with the boom in the Non-Banking Finance Company (NBFC) sector. His fall in 1996 was equally fast.Forget investors, even credit-rating agencies didn't see it coming. CARE, a leading agency, gave 'AAA' rating at a time when the company was going down.

How to become chairman of top 3 finance companies

Born in Rajasthan, raised in Kolkata, Bhansali became a dada in the financial capital — Mumbai — before he turned 40. First came the finance company (CRB Capital Markets), after which the mutual fund (CRB Mutual Fund) and CRB Share Custodial Services followed. Then he planned to get into banking, and he almost made it. He had a dream run from 1992 to 1996 collecting money from the public through fixed deposits, bonds and debentures. He floated around 133 subsidiaries and unlisted companies. Most of the money was transferred to these dummy companies.The flagship company, CRB Capital Markets, went public in 1992 and raised a record Rs 176 crore in three years. In 1994 CRB Mutual Funds, through its Arihant Mangal Growth Scheme, raised Rs 230 crore. Another Rs 180 crore came through fixed deposits. CRB Corporation Ltd raised Rs 84 core through three public issues between May 1993 and December 1995. CRB Share Custodial Services raised a further Rs 100 crore in January 1995 to set up operations.Between 1992 and 1995, when the market was in the post-Harshad Mehta bear phase, Bhansali managed to raise close to Rs 900 crore. Post-1995, he got a beating on the stock markets. His investments in the property market did not pay off because of the slump. Caught in a financial trap, Bhansali tried borrowing more money from the market. ''To repay the interest rate on amounts he borrowed later, Bhansali was forced to borrow once again. This went on and on, and he got stuck in a financial quicksand,'' says a former employee, refusing to be named.

Going down, he even tried to invest in Bollywood

Bhansali made a determined effort to get out of the trap by investing in some high-risk ventures. He is believed to have even made a Hindi commercial film. Again, the g a m b l e f a i l e d .In the end, Bhansali was borrowing funds from banks through questionable means. All was well till December 1996. Then the Reserve Bank of India (RBI) refused banking status to CRB and contemplated action for various irregularities. Pradip Bhavnani, President of National Association of Small Investors, says: ''There was a lot of confusion about how to act against CRB, considering its NBFC status. When he started defaulting, public sector banks like the State Bank of India were the first to be hit. Had the SEBI and RBI acted fast, investors wouldn't have lost money.'’Bhansali spent three months in jail in 1997. He is out now but nobody knows where he lives and if they do, they are not snitching.

Retrospection

7

MARKET ROUND-UPLalit Goel MBA-A1020019

MARKET TREND:

The Foreign Institutional Investors (FIIs) opened the year 2011 as being net sellers for `3058.50 crore (till January 18). Their trend will be a deciding factor for the market ahead.The trigger for the sell-off which emerged from the start of the month has been the pertaining inflationary pressure and the fear of possible corrective action expected from the Reserve Bank of India. RBI's quarterly monetary policy review is released on 24th of this month is neutral with no extra influence on the market. Inflation is continuing at alarming rates.As a matter of fact, Indian markets are the worst hit among the major global peers, since the start of the year 2011. Some of the global majors are in the recovery run, while some others are exploring newer highs.

BSE SENSEXS&P CNX NIFTY

On 28Jan Sensex closed at 18395.97 after touching 3 month low of 18235.45 and Nifty closed at 5512.11 . Sensex has lost 6.70% and nifty has lost 6.60% in last one month. FII has drawn out Rs.4837.30 crores from equity market since 3 january. Increase in reserve ratio (CRR 6.0% ) and bank rates ( 6.0 %) to curb the escalating inflation and Improvement in U.S. economic condition as evident from unemployment rate, which has decreased to 9.4 % . could lead to further downturn in the market.

ICICI Bank - Ÿ CMP: 1016.95Ÿ Target Price: 1135Ÿ Stop Loss: 945

ICICI Bank reported PAT of Rs 1437 crore up 31% y-o-y and 16% q-o-q (for 3QFY2011), which is above expectation and market consensus , driven by core earnings and lower provisioning expenses. Net interest income up 12.3% y-o-y and 4.9% q-o-q driven by 15% y-o-y loan growth. Asset quality improved significantly during the quarter. Provisioning expenses has declined 28% q-o-q during the quarter.

BUY Bank Of India - Ÿ CMP: 437.85Ÿ Target: 500Ÿ Stop Loss: 408Bank of India (BOI) posted robust net profit growth of 61.1% yoy to Rs 653 crore (for 3QFY2011). For 3QFY2011, the bank's net advances grew by 6.2% qoq and 22.8% yoy and deposits registered growth of 4.8% qoq and 22.6% yoy. The gross NPA ratio improved to 2.4% from 2.6% in 2QFY2011 and net NPA ratio improved to 0.9% from 1.1% in 2QFY2011. During 3QFY2011, the bank restructured advances worth Rs 719cr v/s Rs 346 crore in 2QFY2011 and Rs 302 crore in 1QFY2011.

BUY

8

CAMPUS POLL

“Finance is the art of passing currency from hand to hand until it finally disappears. “ -Robert W. Sarnoff

Praveen Kumar MBA-D1020309Neizel M. Souza MBA-A1020022

s per the survey conducted results are as follows

To keep check to rising double digit inflation, RBI recently

hiked its short-term lending and borrowing rates by 0.25 Aper cent and 0.50 per cent respectively, a move that could put pressure

on banks to make auto, home and commercial loans expensive.

Responses No: of Responses YES 64 NO 39 CANT SAY 15 TOTAL 118

As per the survey conducted

Out of 118 respondents, 64 (54.24%) agree that the hike in interest

rates will ease the pressure of INFLATION , Whereas 39 (33.05%) say

that the hike won't be able to bring down the INFLATION , whereas

15 (12.71%) people are not sure about it .

9

Cellular Operators Association of India (COAI) introduced Mobile

Number Portability. It enables mobile telephone users to retain their

mobile telephone numbers when changing from one mobile network

operator to another.

Responses No: of Responses YES 18 NO 83 CANT SAY 17

TOTAL 118

As per the survey conducted

Out of 118 respondents, 18 (15.25%) have an opinion that they will

switch their operators, While 83 (70.34%) say that they won't switch

the operators as they are satisfied with present one's, whereas 17

(14.41%) people are not sure about it .

10

FINANCE QUIZZ

“Wealth, howsoever got, in E n g l a n d m a k e s l o r d s o f mechanics, gentlemen of rakes; Antiquity and birth are needless here; 'Tis impudence and money makes a peer. “ -Daniel Defoe

Shilpi Kumari MBA-B10200156

1) RBI has advised the banks to minimize the number of nostro accounts to have a

better control over reconciliation. What is nostro account?

2) who is India's largest Import Trade Partner.

3) Which one is the largest Public Sector Enterprise in India?

4) A statement of estimated receipts and expenditures called annual Financial

Statement (Budget) has to place before parliament for each financial year. Which

article says this?

5) When the government fails to check inflation, it raises income tax and the

corporate tax. What do we call such tax?

6) what is LIBOR?

7) “Residex" is an index which is related to?

8) What is the name of share price Index (in dollar value) of Mumbai Share

market?

9) How much loan did World Bank provide to Indian Infrastructure Finance

Company, SIDBI, Power Grid Corporation Limited?

10) How many Government / Public Sector Undertakings are registered with both

BSE & NSE?

11) Which successful investor is popularly known as "The Oracle of Omaha"?

Moreover, his famous quote is "Rule No.1: Never loss money, Rule No.2: never

forget the Rule No.1"

12) What do you call when a firm's actual bank balance is greater than the balance

shown in the firm's book?

13) What is ANCOM?

14) Which is India's first Equipment Bank launched by SREI International

Finance Ltd.?

15) What is 'Slash Fund'?

1)An account at a foreign bank where a domestic bank keeps reserves of a foreign currency.2)China.3)Indian railway4)article1125)Buoyancy6)LONDON INTERBANK OFFERED RATE7)Land prices8)Dolex

9)3 BILLION10) 3111) Warren Buffet12) Payment Float13) Andean Common Market covering Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela14) Quipo15) Money spent for payment towards the influential persons for the benefit of organizations

ANSWERS

11

CROSSWORDThe top Elite of banks

“Value is not intrinsic; it is not in things. It is within us; it is the way in which man reacts to the conditions of his environment. “ -Ludwig Von Mises

Skandan Y N MBA-A1020035

Across

2. Who is the CEO of JP Morgan3. Who is the president of WORLD BANK5. Who is the ceo of standard chartered6. Who is the president of European central bank7. Who is the chairman of federal reserve8. Who is the chairman of SEC9. Who is the CEO of citigroup

Down

1.Who is the CEO of Deutsche bank4.Who is the chief of SEBI

Across

2.JAMIE DIMON3.ROBERT ZOELLICK5.PETER SANDS6.JEAN TRICHET7.BEN BERNANKE8.MARY SCHAPIRO9.VIKRAM PANDIT

Down

1.JOSEF ACKERMANN4.BHAVE

12

ABOUT “NISHKA”

NISHKA is a monthly finance magazine brought by the students of the finance club of CHRIST UNIVERSITY Institute Of Management Kengeri Campus. The idea behind coining the issue of this magazine is to establish a learning among the students which helps them to gain an insight about the world of Finance.

-TEAM “NISHKA”

FACULTY CO-ORDINATORSProf. Anirban GhatakDr. Jeevananda

CO-ORDINATORSAzhagumathivanan RFlavia Deepika Tellis

EDITORSDivyashree RMadhav A

CREATIVE & DESIGNINGSaurabh Kushwaha

STOCK ANALYSISLalit Goel

CAMPUS POLLNeizel M. SouzaPraveen Kumar

ARTICLESNeha SinghAnish KumarAarthi K

RETROSPECTIONManish Santani

CROSSWORDSkandan Y N

QUIZShipi Kumari