subject: Banking Magic [print this page] Banking Magic Banking Magic
BANKING MAGIC
Anshu Chauhan
Lecturar
SIMT
By the end of 1991, in the days of globalization the private banks were going at rapid rate. The investment right full in banking industry on a global scale remained oligopolistics in nature ranging from the global leaders to Public sector undertaking investment banks and boutiques investment banks portfolio for the fund based were earning at higher interest rate as the earlier non-fund based .Private banks improve margins by offering more service as the result of high salaried individual disposable income increased and for the betterment they need professional advice .In case of private sector banks investment at the aggregate level showed at a significant increase in 2006-2007 , the total investment by 21.9% to Rs2,03,387 crore during 2006-07 from Rs1,66,865.
Strongest Secret is the additional flow of credit to common public is the reason for increasing rate of inflation. Many programs have been launched to fairly increase the floatation of money but hardly any one has defined how much, the quantity economist considers demand creation is the result of individual income. Did any financial institution or private sector have searched the maximum paying capacity for an individual? If no, than it is the right time to decide .In today's world of services every step will lead to suitable economic environment and economically poorer population wouldn't feel unfortunate on their existence in one the most developing nation .Several measures and effects can be considered for right answers that make each Rupee as the values of money
To many observers, the recent debate about possible fiscal policy intervention suggests that we are still relying on the approaches to discretionary in post periods of policy activism. The central bank increased statutory liquidity ratio (SLR) by 100 basic points from 24% to 25% effective from November/8/2009. Scheduled commercial banks are currently maintaining SLR investment at 27 % of their net demand time liability as it has been noticed that increase in SLR will not the impact of liquidity position for banking system and credit to private sectors .
Drastic growth to privatization and extension of financial institution for the lending credit to market is a virtue or vice. By the end of March 2010 budget 2010-201 has shown various variation in rupees. Date has shown mobilization of Indian currency by Non Tax Revenue i.e. 11p, non debt capital receipt i.e. 3p and borrowing and other liabilities is 29p. there are some factors such as service Tax , Union Excise duties , custom & Income Tax totally they make 34p.On the contrary rupees goes to Non plan assistance ,state share of duties and taxes ,plan assistance to sate and UT, central plan , subsidies and defiance, Interest payment and finally other non- plan expenditure that makes the total of 93p. On ground bases budget look fine , it will possible to fulfill the aspiration of a one billion population, Finance ministry faced an economy that was just about gathering pace after a massive pull back that threatened to undo nearly all the goods work of one decade. This mixture of all the possible advices by assuming a growth 8.5% of Gross domestic products in real term, that is net of the inflation. The estimated inflation rate is 4% for the year; The Indian economy has come a long way just a hope .India with the advanced Industrial structure in the world the only laggard in the agriculture sector. Total production of each sectors actually contracted in the year 2009-2010. Budget has substantially raised the allocation for special including the government flags ship Bharat Nirman programs and rural employment schemes MGNREGA. (The Mahatma Gandhi National Rural Employment Guarantee Act)
Year 2010-2011 has made a fair start to getting back on the path of stable growth , while balancing the risk of a continuing global slowdown but without boarded participation , rapid growth cannot be sustained effortlessly for year and year to come but the major issues is to calculate on that basis we are forecasting our future growth ; on the higher rate of foreign direct investment , better approach to other countries or on the basis of increasing poverty line , increasing unemployment and most off all static value of money.
Betterment in economic stage and flourishing future for Indians can be achieved by increasing the value of money with the limited supply of credit to general population.
REFRENCES
BUDGET 2010-2011 /YOJANA/ MARCH 2010
INFLATION DYNAMICS IN INDIA / RESERVE BANK OF INDIA BULLETIN / APRIL 2010
