Indian Business Environment Essay Example for Free

Indian Business Environment Essay Abstract One of the major objectives of Indian banking sector reforms was to encourage operational self-sufficiency, flexibility and competition in the system and to increase the banking standards in India to the international best practices. The second phase of reforms began in 1997 with aim to reorganization measures, human capital development, technological up-gradation, structural development which helped them for achieving universal benchmarks in terms of prudential norms and pre-eminent practices. This paper seeks to determine the impact of various market and regulatory initiatives on efficiency improvements of Indian banks. Efficiency of firm is measured in terms of its relative performance that is, efficiency of a firm relative to the efficiencies of firms in a sample. Data Envelopment Analysis (DEA) has used to identify banks that are on the output frontier given the various inputs at their disposal. The present study is confined only to the Constant-Return-to-Scale (CRS) assumption of decision making units (DMUs). Variable returns to scale (VRS) assumption for estimating the efficiency was not attempted. It was found from the results that national banks, new private banks and foreign banks have showed high efficiency over a period time than remaining banks. II. Reforms and Banking system In the post liberalization-era, Reserve Bank of India (RBI) has initiated quite a few measures to ensure safety and consistency of the banking system in the country and at the same point in time to support banks to play an effective role in accelerating the economic growth process. One of the major objectives of Indian banking sector reforms was to encourage operational self-sufficiency, flexibility and competition in the system and to increase the banking standards in India to the international best practices 4. Although the Indian banks have contributed much in the Indian economy, certain weaknesses, i.e. turn down in efficiency and erosion in profitability had developed in the system, observance in view these conditions, the Committee on Financial System(CFS) was lay down. Reserve Bank of India has implemented banking sector reforms in two phases. The first reform focused on introduction of several prudential norms, major changes in the policy framework, and formation of competiti ve atmosphere. The second phase of reforms began in 1997 with aim to reorganization measures, human capital development, technological up-gradation, structural development which helped them for achieving universal benchmarks in terms of prudential norms and pre-eminent practices. The Financial sector reforms were undertaken in 1992 based on the recommendations of the CFS. Later, The Narsimham Committee has provided the proposal for reforming the financial sector. The committee also argued that ‘economic reforms in the real sector of economy will, however, fail to realize their full potential without a parallel reform of the financial sector. It focused on several issues like, releasing of more funds to banks, deregulation in interest rates, capital adequacy, income recognition, disclosures and transparency norms etc. However, financial sector reforms focused on improving the competitive efficiency of the banking system. The financial reform process has commenced since 1991 which was made the banking sector healthy, sound, well- capitalized and become competitive. The competitive pressures to improve efficiency in the banking sector has resulted in a switch from traditional paper based banking to electronic banking, use information technology and shift of emphasis from brick and mortar banking to use of ATMs. INDIAN BUSINESS ENVIRONMENT IN BANKING INDUSTRY Indian banking industry, the backbone of the country’s economy, has always played a key role in prevention the economic catastrophe from reaching terrible volume in the country. It has achieved enormous appreciation for its strength, particularly in the wake of the worldwide economic disasters, which pressed its worldwide counterparts to the edge of fall down. If we compare the business of top three banks in total assets and in terms of return on assets, the Indian banking system is among the healthier performers in the world. This sector is tremendously competitive and recorded as growing in the right trend (Ram Mohan, 2008). Indian banking industry has increased its total assets more than five times between March 2000 aThe overall development has been lucrative with enhancement in banking industry efficiency and productivity. It should be underlined here is financial turmoil which hit the western economies in 2008 and the distress effect widened to the majority of the other countries but Indian banking system survived with the distress and showed the stable performance. Indian banks have remained flexible even throughout the height of the sub-prime catastrophe and the subsequent financial turmoil. The Indian banking industry is measured as a flourishing and the secure in the banking world. The country’s economy growth rate by over 9 percent since last several years and that has made it regarded as the next economic power in the worldnd March 2010, The Indian banking industry is measured as a flourishing and the secure in the banking world. The country’s economy growth rate by over 9 percent since last several years and that has made it regarded as the next economic power in the world. Our banking industry is a mixture of public, private and foreign ownerships. The major dominance of commercial banks can be easily found in Indian banking, although the co-operative and regional rural banks have little business segmentIn the post liberalization-era, Reserve Bank of India (RBI) has initiated quite a few measures to ensure safety and consis tency of the banking system in the country and at the same point in time to support banks to play an effective role in accelerating the economic growth process. One of the major objectives of Indian banking sector reforms was to encourage operational self-sufficiency, flexibility and competition in the system and to increase the banking standards in India to the international best practices. Although the Indian banks have contributed much in the Indian economy, certain weaknesses, i.e. turn down in efficiency and erosion in profitability had developed in the system, observance in view these conditions, the Committee on Financial System. Reserve Bank of India has implemented banking sector reforms in two phases. The first reform focused on introduction of several prudential norms, major changes in the policy framework, and formation of competitive atmosphere. The second phase of reforms began in 1997 with aim to reorganization measures, human capital development, technological up-gradation, structural development which helped them for achieving universal benchmarks in terms of prudential norms and pre-eminent practices. The Financial sector reforms were undertaken in 1992 based on the recommendations of the CFS. Later, The Narsimham Committee has provided the proposal for reforming the financial sector. The committee also argued that ‘economic reforms in the real sector of economy will, however, fail to realize their full potential without a parallel reform of the financial sector. It focused on several issues like, releasing of more funds to banks, deregulation in interest rates, capital adequacy, income recognition, disclosures and transparency norms etc. However, financial sector reforms focused on improving the competitive efficiency of the banking system. The financial reform process has commenced since 1991 which was made the banking sector healthy, sound, well- capitalized and become competitive. (CFS) was lay down. Liberalisation of India’s banking sector †¢ Liberalisation of India’s banking sector begun since 1992, following the Narasimhan Committee’s Report (December 1991) †¢ Important recommendations of the Committee were – [i] reduction of statutory pre-emptions (SLR and CRR) [ii] deregulation of the interest rates [iii] opening up the sector to foreign and domestic private banks [iv] adoption of prudential regulations relating to capital adequacy, asset classiï ¬ cation and provisioning standards Service firms such as ITC Hotels and ANZ Grindlays Bank found direct marketing very effective in retailing customers and weathering competition. †¢ The Indian banking system is growing in a robust manner. †¢ The Indian banking system complies with international standards of prudential regulation. †¢ The Indian banking system is opening up for entry of foreign banks. †¢ Despite the growth, Indian banking system is not entirely inclusive. †¢ There is good opportunities for the banking industry – domestic and foreign – for expansion to ï ¬ ll the gap. A decade after the Narasimham report was published and in the light of new challenges from the norms laid down by the WTO and Basel II, it is imperative to have a close look at the performance of banks in the last decade or so to assess the success of the reform process. INDIA inherited a very weak banking system following Independence. However, the nationalisation programme (1969) helped this sector achieve remarkable success in many respects. The stability among depositors, penetration into rural India and the consequent reduction in poverty and diversification out of agriculture were some of its laudable achievements. Given the predominantly bank based nature of financial system, the banking industry gained the reputation of one of the most protected in the country. However, in the 1990s a chain of events such as introduction of modern technologies, competition from new players in the liberalised market place, and enhanced emphasis on governance to protect shareholder interest changed the way banks conducted business. The Indian banking sector with its diversity of ownerships — State Bank of India and its associates, nationalised banks, private domestic banks and foreign banks also faced a similar set of challenges. Although the public sector banks acquired a dominant presence thanks to the regulatory environment, several of them performed poorly in the late 1980s. To preserve the soundness of the financial system, especially the banking segment, the Government set up the Narasimham Committee. The Committee (in 1991) made far-reaching recommendations that formed the basis of banking reforms. Some of the comprehensive reform measures suggested included: Stricter income recognition and asset classification, higher capital adequacy ratio, phased deregulation of interest rate, lowering statutory liquidity ratio (SLR) and cash reserve ratio (CRR), entry deregulation, and branch-de-licensing. These measures mainly aim to improve the efficiency/profitability of banking industry. A decade and half after the Narasimham report was published and in the light of the World Trade Organisation and Basel II norms, it is imperative to have a close look at the performance of banks in the last decade or so to assess the success of the reform process. Performance indicators Commonly-used measures to assess the performance of the banking industry are: Return on Asset (ROA), Operating Profit Ratio (OPR), Net Interest Margin (NIM), Operating Cost Ratio (OCR) and Staff Expenditure Ratio (SER). The first two are generally considered profitability measures, while the others, the efficiency indices. These five measures have been considered in this analysis for two sub-periods: Pre-liberalisation (1992-1995) and post-liberalisation (2000-2003). The total number of banks considered for two sub-periods were 64 (eight State Banks, 19 nationalised banks, 19 private banks and 18 foreign banks) and 87 (8, 19, 28 and 32 respectively). Overall performance improvement A comparison of performance indices during the study period reveals that the reform measures helped to improve the overall performance of industry. This is reflected in the improvement of all performance indicators barring the net interest margin (see Table). Interestingly, the ROA, treated as a proxy for risk-adjusted return, increased from (-) 0.28 per cent in the pre-liberalisation period to 0.79 per cent (against more than 1 per cent in other merging markets such as Singapore, Malaysia and Korea) post-liberalisation, indicating a significant rise in the ability of banks to convert their assets into net earnings. Another interesting aspect is that despite a marginal fall in the net interest margin from 2.84 to 2.73 (which might be due to policy change), the banking industry has managed to improve its OPR by increasing its non-interest fee-based income and reducing its operating costs/staff expenses. The evidence indicates that after the reform initiation period, the banks have increasingly been providing off balance sheet items such as derivatives, which generate major part of non-interest income. The proportion of operating costs/staff expenses has declined mainly due to computerisation and the voluntary retirement scheme. The property rights theorists believe that the private banks are more efficient than their counterparts in the public sector. This view is corroborated by the public choice theorists who argue that the specific X inefficiency factors are more prevalent in the public sector, irrespective of market conditions. Further, many cross-country findings report an increased government ownership as a deterrent to the development of the banking system. The Indian banking scenario seems to be consistent with the above, as the privately owned (foreign as well as domestic) banks seem to be superior to their public counter parts with respect to all performance indicators except the NIM. Despite a fall in their OPR and NIM between 1992-95 and 2000-03, the private banks successfully managed to reduce their operating expenditures, particularly the staff expenditures, thereby successfully maintaining their status. Among private banks, the foreign banks seem to be superior in terms of three out of five the criteria used. Within the public domain, the State Banks tend to be superior with respect to ROA, OCR and SER, while the nationalised banks seem to show better performance in terms of OPR and NIM. Thus, although there is a significant improvement in the overall performance of banks as one moves from the post-reform period to the late-reform period, one finds certain anomalies such as a fall in the NIM (except in the case of the nationalised banks), a fall in the ROA of private domestic banks, a reduction in the OPR of private domestic and foreign banks and a rise in the OCR/SER of foreign banks. Convergence or divergence Apart from the overall improvement across the board, another important criterion to evaluate the success story is to check whether the competitive force has led to any convergence in the performance of different ownership groups in the post-liberalisation period. Exposure to the competitive forces is often argued as a panacea to shake poorly performing banks out of their slumber. Although the public banks compared poorly with private banks during the initial period, they made a significant improvement in the later period by responding well to the new challenges of competition and consolidation, mostly following a gradual and cautious approach. The pay off is well reflected in the increase in their ROA, OPR and NIM. Some possible reasons for the better performance of public banks could be they still undertake most of the government borrowing programmes, thereby generating significant fee based income; the market discipline imposed by the listing of most public sector banks has also probably contributed to this improved performance; and ï‚ · the reform measures have changed their business strategies particularly greater diversification of non-fund based business and emergence of treasury and foreign exchange business. The study reveals that the OPR across four ownership groups tend to converge. The NIM tend to converge across private and public sectors while the OCR continues to remain significantly different across ownership groups. The above analyses indicate that the banking sector performs reasonably well with respect to the goals set by the Narasimham Committee, particularly in the context of the poorly performing banks and showing some encouraging signs to meet the Basel II norms by 2006. However, one should not go over board in reading these numbers to evaluate the success of the Indian banking sector, particularly from the perspective of a developing economy such as ours. Policy-makers should be extra cautious in giving free a reign to the banking sector in pursuing profit and risk based strategies. Recent trends in non-synergy based consolidation, growing disinclination to lend money towards productive purposes and to the unprofitable sectors such as agriculture, self-help groups, infrastructure and to small and medium sized enterprises, its growing engagement in non-productive treasury operations and conspicuous consumer lending will seriously impair the role of banks as public instruments of development. Therefore, maintaining a balance between these two objectives will remain a challenge to the banking sector for some time to come. Bibliography- * www.thehindubusinessline.com * iimahd.ernet.in/assets/snippets/ *

The Fear of Fat Criterion Within the DSM IV Essay example -- anorexia n

As our society is bombarded with the images of manufactured beauty and â€Å"thinness†, conversations increasingly center on dieting and body dissatisfaction. The media advertises weight loss products in the form of pills, drinks, surgery, fitness equipment and support groups to mold individuals into the proposed ideal form. This evidence alone suggests a strong case for the possibility of a pathological fear of fat. Is this fear, however, the driving force behind all cases of anorexia nervosa and bulimia? According to the DSM IV, the fear of gaining weight is essential for these diagnoses to be made. Strong arguments have been made both in favor and against modifying the existing criteria to allow for the diagnosis and treatment of individuals, regardless of whether or not a ‘fat phobia’ is present. Is it culturally insensitive to retain this particular criterion, a fear of gaining weight, if a patient has not been exposed to the same cultural p ressures and orientation towards being thin? Although western culture is thought to be the dominant culture, because of power and economics, non-western cultures make up eighty percent of the world’s population (Lee, 1995). Many of these ‘sub-dominant’ cultures are present in the melting pot of the modern United States. Are these non-Westernized individuals being denied the necessary treatments and interventions merely because a fear of gaining weight is not expressed? Such a strong focus on body dissatisfaction may cause one to overlook or disregard the pressures of societal systems, such as immigration or poverty, on the mental and physical well being of an individual. If ‘fat phobia’ is indeed a culturally constructed definition of anorexia nervosa, it la... ...ternational Journal of Eating Disorders, 17, 175-183. King, M.B., & Bhugra, D. (1989). Eating disorders: Lessons from a cross-cultural study. Psychological Medicine, 19, 955-958. Lake, A.J. Staiger, P.K., & Glowinski, H. (2000). Effect of Western Culture on Women’s Attitudes to Eating and Perceptions of Body Shape. International Journal of Eating Disorders, 27, 83-89. Lee, S. (1993). How abnormal is the desire for slimness? A survey of eating attitudes and behaviour among Chinese undergraduates in Hong Kong. Psychological Medicine, 23, 437-451. Lee, S. (1995). Self-starvation in context: Towards a culturally sensitive understanding of anorexia nervosa. Social Science and Medicine, 41, 25-36. Thompson, J.K. & Altabe, M.N (1991). Psychometric qualities of the figure rating scale. International Journal of Eating Disorders, 10, 615-619.

Large Intestine Essay

Many people often confuse the large intestine with the small intestine. However the large intestine is wider (about 3 inches) yet shorter than the small intestine  (in humans about 4. 9 feet in length as compared with 22 – 25 feet for the small intestine) and has a smooth inner wall. (Britannica)   Ã‚   The large intestine consists of the cecum, ascending, transverse, descending and sigmoid colon, rectum and anus. The longitudinal muscle of the muscularis  externa is concentrated into 3 bands called teniae coli. These 3 bands of muscle form pouches (haustra) because they are shorter than the rest of the colon. The epithelium of the mucosa is mostly goblet cells, and has a numerous  amount of crypts, there are no villi. (Martini, Ph. D. ) The ileocecal valve (sphincter) prevents materials from moving back into the ileum. In the upper half of the large intestine, enzymes from the small intestine complete the digestive process and bacteria produces the B vitamins (B12, thiamin, and riboflavin) as well as vitamin K. Martini, PhD) The large intestine’s primary function is to absorb water and electrolytes from digestive residues and storage of fecal matter until it can be expelled. The large intestine is the last attraction in digestive tube and the location of the terminal phases of digestion. In comparison to other regions of the tube, there are huge differences among species in the relative size and complexity of the large intestine. Nonetheless, in all species it functions in three processes:   (Marieb) *Recovery of water and electrolytes *Formation and storage of feces Microbial fermentation A wide variety of diseases and disorders occur in the large intestine. The most frequent and common disease of the large intestine is Crohn’s disease. The cause of Crohn’s disease is unknown. ( Britannica) Apart from the greater tendency for fistulas to form and for the wall of the intestine to thicken until the channel is obstructed, it is distinguishable from ulcerative colitis by microscopic findings. In Crohn’s disease, the maximum damage occurs beneath the mucosa, and lymphoid conglomerations, known as granulomata, are formed in the submucosa. Crohn’s disease attacks the perianal tissues more often than does ulcerative colitis. Although these two diseases are not common, they are disabling. ( Britannica) Because there is no specific etiology, a combination of anti-inflammatory drugs, including corticosteroids and aminosalicylic acid compounds, is used to treat Crohn’s disease. (Web MD) The drugs are effective both in treating acute episodes and in suppressing the disease over the long term. Depending on the circumstances, hematinics, vitamins, high-protein diets, and blood transfusions are also used. Surgical resection of the portion of the large bowel affected is often done. The entire colon may have to be removed and the small intestine brought out to the skin as an ileostomy an opening to serve as a substitute for the anus. In ulcerative colitis, as opposed to Crohn’s disease, the rectal muscle may be preserved and the ileum brought through it and joined to the anus. (Web MD) Lactose intolerance is the inability to digest significant amounts of lactose, the major sugar found in milk. Lactose intolerance is caused by a shortage of the enzyme lactase, which is produced by the cells that line the small intestine. Lactase breaks down milk sugar into two simpler forms of sugar called glucose and galactose, which are then absorbed into the bloodstream. Lactose intolerance is a problem caused by the digestive system. (lactose) People who do not have enough lactase to digest the amount of lactose they consume may feel very uncomfortable when they digest milk products.

What a hero is - 1160 Words

When the word hero is spoken, everyone has different thoughts. Some will think of super powers like flying and saving people from villains; while others have a certain person they know or have heard of that come to mind who have done something to make a difference in the lives of others but who is a hero to you? To answer this question you must first ask yourself what a hero is; what comes to your mind when someone says the word. When I am confronted with these questions I always have the same thoughts; smart, strong will power, and someone who stands up for what they believe is right. Finding someone who possesses these ideal traits is not an easy task to take on, but one person definitely comes to mind. Living in a time where†¦show more content†¦With all these hardships Nelson Mandela’s plans were constantly pushed back farther and farther but he never let this stop him. Every life comes with hardships and with every hardship comes some sort of setback be it big or small. Nelson Mandela said to his people â€Å"do not judge me by my successes, judge me by how many times I fell down and got back up again†, and many times did he fall and get back up (Brainyquote). Nelson Mandela has always had a vision of South Africa where he and his people could live in a community without apartheid. As this vision became clear to him, and he began to act upon his thoughts, the white supremacists began their process on preventing him from achieving his goals. Nelson Mandela was first charge was furthering the aims of communism which ended his work towards an education due to his incardination and somewhat due to his financial status (Williams). This would not hold back his strive for a degree, upon his release he immediately focused on schooling (nelsonmandela). While jail time set him back Nelson Mandela soon continued his long trail to a degree at a University of London; determined to earn some sort of certificate of completion (Williams). As nelson moved up in popularity from his people, and ranked highly infamous to his antagonist, the setbacks got worse. In the minds of others his dreams were crushed when he was charged with high treason to the stateShow MoreRelatedWhat Makes A Hero Or Hero?812 Words   |  4 Pagesthat man may be, in essence, a hero. Because of this stereotypical â€Å"hero†, we do not see the real heroes in life. What really IS a hero or heroine? A hero is what we make of them, although some are undeserving of this title. We make a hero. You, me, society; we all make heroes. We give them this title. He roes are role models, and role models, in my eyes, should possess three very significant qualities. Courage, humbleness, and morality; these form a hero. The classic hero. Ah, he’s brave and bold. HeRead MoreHero Essay : What Makes A Hero A Hero?832 Words   |  4 PagesWhat Makes a Hero a Hero? As I have recently sat down with my grandmother, Mary, I asked her questions about a hero and herself being a hero. My grandmother has such an impact on me in daily life along with being a personal hero to me. She is such an inspiration to me in so many ways that I could never think of taking for granted. I chose my grandmother as my hero because of obstacles I have faced, she was the one to show me the love and support I was in need of at the time. Mary shows theRead MoreWhat Makes A Hero?1168 Words   |  5 PagesSuperman, Abraham Lincoln, Gandhi, what do these three have in common? They’re all heroes. But what truly is a hero? Is it one who wins independence for his country, or one that helps an old lady cross the street? And should we aspire to be like this person? Using Brecht’s Life of Galileo, Beethoven’s Heiligenstadt Testament and Plato’s Allegory of the Cave, we’ll attempt to answer that question. A hero typically in today’s culture is considered as someone who is admired for his courage and otherRead MoreWhat is a Hero? Essay528 Words   |  3 PagesWhat is a Hero? There are many types of heroes (such as the ones in comic books, myths, movies, or even just everyday life heroes) but all of them have perseverance when they’re going through a conflict. Heroes are role models and they’re people that we look up too. They all have unique and special qualities that make one another different from each other. For example policemen battle crime everyday and when they’re overcoming a conflict they have determination, courage and other traits that peopleRead MoreWhat Makes a Hero?1209 Words   |  5 PagesWhat is a Hero? What is a hero? What makes him or her different from everyone else? In Phillip Zimbardo’s article â€Å"What Makes a Hero?† he states that heroes surround us. One in five or 20 percent of people qualify as heroes. Seventy-two percent of people report helping another person in a dangerous emergency. Sixteen percent report whistle blowing on an injustice. Six percent report sacrificing for a non-relative or stranger and fifteen percent report defying an unjust authority (1). AlthoughRead More What Is A Hero? Essay1173 Words   |  5 Pagesthrough their determination and unselfish deeds. However, we may not notice some of society’s other heroes. One such heroic person that comes to my mind is Arnold Schwarzenegger. Many people perceive Arnold as only a blockbuster movie star and not as the hero he truly is. People see the glittery and glamorous fascade of the actor but not the truly heroic acts of the humanitarian. Through his charity work, Arnold has truly touch ed the lives of those who are less fortunate. nbsp;nbsp;nbsp;nbsp;nbsp;ThereRead More What is a Hero? Essay1140 Words   |  5 PagesAccording to the Oxford English Dictionary, a hero is â€Å"a man who exhibits extraordinary bravery, firmness, fortitude, or greatness of soul, in any course of action, or in connection with any pursuit, work, or enterprise; a man admired and venerated for his achievements and noble qualities.† Throughout history there has often been a need for such a human. The epic poem Beowulf narrates the story of a hero named Beowulf who rescues Denmark from several monsters that terrorize it: Grendel and his motherRead MoreWhat Makes A Hero?1541 Words   |  7 Pages What is a hero? Is it superman? Is it your mom or dad? Is it your teacher? There are many people that are considered heroes. Some are just every day people, and some are super-human. Characteristics of heroes vary from era to era. Now people who are just simply a good person are considered a hero. But, back in ancient times to become a hero took much more. It took honesty, wisdom, and in some cases, wealth and superhuman abilities. With time new stories and beliefs are uncovered. In ancientRead MoreWhat Makes A Hero?934 Words   |  4 Pages Most people have theories on what makes a hero a hero. Many authors over time have created books, comics and so forth on heroes and what they feel makes them the hero. There are also the ancient legends and myths from all over the world. So what is it that makes them a hero? Well Joseph Campbell has a pretty good outline of what he thinks should define a hero. A hero is a person who in some way breaks the molds of a normal huma n being. Their wisdom, courage, and durability ect. exceedsRead MoreWhat Makes a Hero1664 Words   |  7 Pages2011 What Makes A Hero What makes a hero? Saving a puppy from a burning building? Or what about being a single mother raising three kids and working two jobs? Both of these could be good candidates for heroes since they both possess the characteristic of strength—not just physical strength, but mental strength. This is one of the most important traits of a hero but it is not the only one. Courage, intelligence, and morality are also necessary in order to really get penciled in to the â€Å"hero† category