B U S I N E S S | Sunday, October 10, 1999 |
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weatherspotlight today's calendar |
C-D ratio of public
sector banks less than average Moot ways to end graft, CAs urged |
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11.21 lakh tonnes paddy procured NEW DELHI, Oct 9 Food Corporation of India has so far procured 11.21 lakh tonnes out of the total purchase of 40.33 lakh tonnes of paddy in Punjab, Haryana and Tamil Nadu in the current kharif marketing season 1999-2000. Verma
panel selects SBP as best bank Pilkington to launch sunglasses in
India Discourage hoarding of knowledge All in the family and still good |
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C-D ratio of public sector banks less than average MUMBAI, Oct 9 (PTI) The credit-deposit (C-D) ratio of public sector banks and regional rural banks (RRBs) worked out to much less than the all-India average of 54.1 per cent as on June 25, 1999, according to RBI. The ratios were much lower for nationalised banks at 48.3 per cent and 42.9 per cent for RRBs but it was relatively high for foreign banks (67 per cent), SBI and its associates (64.7) and other scheduled commercial banks (55.4) Population group-wise, metropolitan centres had the highest C-D ratio of 75.2 per cent followed by urban centres (41.2 per cent), rural centres (40) and semi-urban centres (33.5), RBI said in its Banking Statistics: Quarterly Handout June 1999. The top hundred centres, arranged according to size of deposits, accounted for 59 per cent of the total deposits and when arranged according to the size of bank credit, constituted 73.6 per cent of the total bank credit. Nationalised banks as a group have contributed 54.4 per cent of the aggregate deposits while the SBI and associates accounted for another 24.8 per cent, the report said adding, the shares were 10.8 per cent for other scheduled commercial banks, 6.3 per cent for foreign banks and 3.7 per cent for RRBs. On gross bank credit, the report stated that nationalised banks accounted for a share of 48.5 per cent of the total bank credit, while SBI and its associates claimed a share of 29.7 per cent. Other scheduled commercial banks, foreign banks and RRBs followed with shares of 11.1 per cent, 7.8 per cent and 3.0 per cent, respectively, it added. Among the States/Union Territory, the annual (point to point) growth rate of deposits was highest in Sikkim (31.2 per cent) followed by Lakshadweep (26.9), Dadra & Nagar Haveli (25.1), Mizoram (22.8), Goa (20.9) and Pondicherry (20.7). The annual (point to point) growth rate of bank credit was highest in Jammu and Kashmir (44.9 per cent) followed by Chandigarh (39.4), Lakshadweep (31.3), Mizoram and Dadra & Nagar Haveli (29.5 each), Arunachal Pradesh (22.5) and Himachal Pradesh (22.2). Six states namely Maharashtra, Delhi, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat together accounted for a total share of 59.7 per cent of aggregate deposits, the RBI report said. Similarly, the six
states namely Maharashtra, Delhi, Tamil Nadu, Andhra
Pradesh, Karnataka and West Bengal together accounted for
a total share of 69.2 per cent of gross bank credit, it
said adding, Maharashtra alone contributed 18.8 per cent
of total bank deposits and 25.2 per cent of total credit. MUMBAI, Oct 9 (UNI) Private sector Times Bank today registered an impressive 61 per cent jump in net profit to touch Rs 9.5 crore the first half of financial year 1999-2000 from Rs 12.1 crore a year ago. The Banks total income in the first half rose by 24 per cent to Rs 194 crore. Total deposits of banks as on September 30 was Rs 2879 crore, up 25 per cent from total deposits a year ago. Total loans and advances extended by the bank stood at Rs 1,538 crore, 51 per cent higher than loans and advances a year earlier. With this issue, equity
capital of the bank has increased to Rs 135 crore from Rs
100 crore earlier. |
Aircraft to take precautions on December 31 night NEW DELHI, Oct 9 (PTI) Aircraft on international routes would fly above 12,000 feet and those in the domestic sector below that level on the intervening night of December 31 and January 1 as per international guidelines to avoid Y2K problems. Specific routes had been charted out for international and domestic travel during that period as per the Asia-Pacific Regional Plan, Civil Aviation Secretary P.V. Jayakrishnan said. Stating that the Indian civil aviation sector had become Y2K compliant, he said while Y2K monitoring and control systems would be activated at 1 p.m. on December 31, a contingency plan chalked out by the Ministry and concerned departments would be activated on 9.30 p.m. the same night. The Indian civil aviation authorities have also taken steps to account for the leap year problem of February 29, 2000, Jayakrishnan, accompanied by Director General Civil Aviation H.S. Khola and Airports Authority of India Chairman D.V. Gupta, said at a presentation here. The volume of air traffic within and over India was very major and about 1200 flights, half of them overflying India, were handled on a daily basis. The rest carried an passenger load of 70,000 every day. To a question about Pakistan deciding to stop all flights at 6 p.m. on December 31, Jayakrishnan said we have no such plans at this point of time. We are very confident of keeping aircraft on air during that period. All critical systems, including communication, landing, navigation, surveillance, security, flight management and reservations, have been assessed and made compliant, Khola said. He said the civil aviation sector was now awaiting external audit by International Civil Aviation Organisation (ICAO) and other bodies. Replying to questions,
Jayakrishnan said international bookings for December
end-January beginning so far has been much
less than in the past as this was a peak holiday
season. |
11.21 lakh tonnes paddy procured NEW DELHI, Oct 9 (PTI) Food Corporation of India (FCI) has so far procured 11.21 lakh tonnes out of the total purchase of 40.33 lakh tonnes of paddy in Punjab, Haryana and Tamil Nadu in the current kharif marketing season 1999-2000. The procurement during the corresponding period, last year, was of the order of 12.41 lakh tonnes. The farmers in Punjab and Haryana are getting the advantage of the scheme of Minimum Support Price (MSP) by selling their paddy in the mandis, says a FCI release adding the staff and officers involved in the procurement operations have been advised to strictly follow the specifications issued by the Centre. The farmers have also been requested to co-operate in selling their paddy in mandis after proper drying and cleaning.
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Pilkington to launch sunglasses in
India NEW DELHI, Oct 9 Pilkington Special Glasses Limited (PSGL) has set its eyes on the Indian sunglasses market and is soon going to launch high-quality branded glasses in the country. PSGL, a division of the £ 3 billion Pilkington Group has drawn out an extensive plan for making inroads into the Indian market starting with the launch of UV 415 brand of sunglasses in the market. Speaking to The Tribune, Business Line Manager of PSGL, Mr Brian McDermott said that the strategy is to create a high level of demand for both prescription and protective lenses. PSGL has created a market base in India with traditional glasses and more recently photocromics. However, even though the company has been present in India since last 40 years,there appears to be not much awareness about the products, Mr McDermott said. Mr McDermott said that during the last 18 months there has been major changes in the companys operations in India and the Country could eventually serve as a major export base for PSGL for South Asia, Africa and the Middle-East. The company is, however,
not putting in place a full sales network and amount of
money envisioned for investment in India has not yet been
finalised. We are going to depend on existing
distribution network, Mr McDermott said adding the
network will primarily be operated by the traders. |
Verma
panel selects SBP as best bank PATIALA, Oct 9 State Bank of Patiala has emerged as one of the two best banks in the public sector banking industry which satisfy all the seven efficiency criteria laid down by the Working Group on restructuring weak public sector banks, appointed by Government of India. The working group, headed by the former Chairman of SBI, M.S. Verma, selected the following seven parameters to judge weakness/strength capital adequacy ratio (CAR), coverage ratio, return on assets (ROA), net interest margin, ratio of operating profit to average working funds, ratio of cost to income and ratio of staff cost to net interest income plus all other income. These parameters indicate solvency, earning capacity and profitability of banks. A comparative position of 27 public sector banks reveals that only two banks one of which is State Bank of Patiala satisfied all these criteria and had emerged as best banks in the country. The bank has planned to
computerise 50 more branches during the year and have
fixed a target to taking the number of fully computerised
branches to 135 by March, 2000. The bank computer system
are all Y2K compliant. |
Moot ways to end graft, CAs urged PATIALA, Oct 9 The Chartered Accountants must devise ways and means to contain the epidemic of corruption in the Indian society said. Mr S.P. Chhajed, President of the Institute of Chartered Accountants of India (ICAI) while inaugurating the Patiala Branch of the ICAI here today. The chief guest of the function, Mr A.K. Batra, Managing Director of the State Bank of Patiala, called upon the Accountants to act as the catalyst of economic change under the ambit of ICAI. Mr B.M. Singh, Commissioner Income Tax said that the new branch will open new vistas for the members to upgrade their knowledge and skills to face the challenges of globalisation and liberalisation. Mr Navdeep Singh
Chaudhary, Chairman of the local branch of the ICAI
exhorted its members to introduce greater transparency
and accountability in financial accounting and reporting
systems to meet the growing needs of the new world
economic order. |
Discourage
hoarding of knowledge EVALUATING emerging technologies is a tricky business. There is no yardstick to track those which will succeed and those which wont. This is particularly true for information technology (IT) and R&D organisations which are basically knowledge organisations. Emerging technologies after their technology trigger phase go through a set pattern of pack of inflated expectations, trough of disillusionment, slope of enlightenment and finally plateau of productivity. These phases are extremely useful and informative for tracking those emerging technologies that will make it and those that will not, and also equally importantly, the approximate time frames for their evolution. Knowledge of work force who provide the necessary input in the evolution process in a key parameter world over because of inherent challenges being posed to the HR functions. Powers in the HR functions in the corporate world include Position power and Knowledge power. Although the HR manager has position power it sometimes gets threatened by knowledge power. Consider the situation, when a scientist working on a crucial formulation in a pharmaceutical company suddenly decides to abdicate and walks away with his years of professional knowledge acquired during the period and lying with him and most of which the said company even might not have used so far, but could possibly have used it in the near future? The organisation obviously has been duped and put to a loss. In fact these are the characteristics of knowledge organisations, besides their employees are highly educated or experienced and they tend to be very competent and are highly ambitious. Knowledge organisations are always learning and as such their employees always want to learn something new. The employees work with leading edge technologies and are constantly in the process of upgrading their competencies. The proper HR strategy of the 21st century to manage such eventualities coupled with the profile of knowledge workers should be to advance the skills and expertise at knowledge creation as a distinctive way to innovate, capture, store and leverage the employees knowledge with the following HR functions: Assume more of a strategic role than an operational role by aligning the various HR processes with the business strategy. HR functions be positioned in a manner which would discharge the strategic role effectively. Invest in people i.e., work more towards attracting, retaining and motivating the best talented people with a view to enhance the intellectual capital which would ultimately ameliorate the competitive position of the organisation. Undertake a Culture Building Role which must touch every single person everyday in the organisation. Expose employees to challenges to keep the fire burning. Shift gears from controlling to liberating the potential energy of employees, i.e., give far greater responsibilities. Function as an enabler and a change agent to facilitate the transformation of the organisation from mechanistic, bureaucratic mode to an organic, vibrant and centreless mode. Encourage credibility and innovation through boundryless behaviour. Create learning centres and encourage, knowledge sharing. Publicly recognise the employees for dissemination of knowledge. Discourage hoarding of knowledge and hiding of information. The compensation policies should be so designed that even the knowledge workers may get paid more than their superiors. Focus to attract and retain highest level of professional intellect. Make the work environment friendly and the office a fun place to be in. Training efforts be focused on self motivated creativity, intellectual stimulation and career growth of employees. Provide international exposure. Last but not the
least, right recruitment policies should be critical to
the survival of knowledge organisations. |
All in the family and still good NEW DELHI, Oct 9 (UNI) Family-run companies in India with clear focus have created more wealth and better performers amongst them, and have excelled even over the MNCs, according to Booz Allen and Hamilton (BAH). According to Dr Shumeet Banerji, Vice-President, BAH, in the Indian context family run businesses are very relevant and the dynamism shown by these entities are similar to that of comparable set-ups world over. Yet, he observed that the promoter model has to erase the value discount often expressed in the media and thrive over generations. Many concerns that are expressed over family run businesses in the media are ill founded. Based on an analysis made on a sample of 350 companies about their average market capitalisation over the period 1996-1999, Dr Banerji said that the growth in market capitalisation of promoter companies was 14 per cent as against 34 per cent by MNCs. The growth for the professionally led companies was only 1 per cent and that of PSUs (-) 12 per cent. This, he said, disproves the widely held paradigm about the doubts cast on promoters about their inability to add value and the perception that the role of promoters in a developed economy is much smaller. Among the promoter company, the empirical evidence indicates that entrepreneurs do better than inheritors. The reasons for the lacklustre performance of inheritors as compared to the first generation entrepreneurs could be the old rules in which the inheritors operate. These enterprises are asset focused, diversification centric and were the product of licence raj. They do not have the right to exit because of the labour Laws. The companies which are
creating values in the new paradigm are more focused,
knowledge based and have core capabilities. The old rules
are based on market imperfections, under developed
distribution networks, variable ethical standards, under
developed consumer protection mechanisms and have little
protection for minority shareholders. These imperfections
in the market were characterised by lack of skilled
labour and management of talent. The communication
infrastructure was inadequate so also discretion in
applications of rules. Lucrative business opportunities
were only to those who have access to capital and have
developed superior deal making capabilities. |
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