NIBODHAA BANKING AND FINANCIAL NEWSLETTER
NIBODHAA
Banking and Financial Newsletter
Stress free work ambience,
Joyful individuals, happy
family are the essence of
success.
Issue No. 103
(JANUARY)
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
FROM THE DESK OF NIBODHAA
Dear friends,
The 103 issue of Nibodhaa is before you. The new year thrust
should have been that of resolutions, hope and positive
thinking. But the news pouring is about disturbing trends in
work station which upset work life balance, especially in
banking. We focus on Stress at Bank this month. Needless to
mention that we have got a plat form to discuss the stress
eliminating tips and guidelines, details of which are given
elsewhere. The industry, the Associations, Unions, other
welfare associations are to think and act quickly, as to how
long we can go with present level of stress in Banks.
We invite eye opening writeups from readers/experiences
which may help the people at the helm of affairs to make a
thought. Can we leave, the backbone of the economy so
fragile and weak owing to stress. Is it not high time to think
about it?
ECK UNNIKRISHNAN,
KVN NAMBOODIRI.
MESSAGE FOR WORKING BANKERS
ARE YOU STRESSED AT WORK? YOU ALSO
KNOW THAT IT AFFECT YOUR HEALTH BADLY BE
ON BOTH SHORT TERM OR LONG TERM. We
have very valuable tips to share with you. We are
there on google plat form, if you are at least 10 in
number, at your convenient time, at a very nominal fee
payable only if the sessions are satisfactory to you.
Contact me: KVN Namboodiri, 7559960659
INDEX
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
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11.
From the desk of Nibodhaa
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Message for working bankers
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National
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International News
3
Banking
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From RBI
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Inside out
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Holding on, the sky is falling
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What is Greenspan-Guidotti Rule 8
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Learn and practise Meditation
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Project appraisal and balance sheet analysis
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NATIONAL
1. FOREX RESERVE – HOW MUCH IS ENOUGH The Forex reserve
of the country is to the tune of USD 613.9 billion by January end.
There is a drop compared to previous month to the tune of 1.23
billion dollars. The contributing factor is Donald Trump, though
the rise in gold prices largely countered the outflow. The position
is comfortable as per the international conventions and concepts
(Greenspan-Guidotti rule).
INTERNATIONAL
1. OIL PRICES UP, INDIA WORSE HIT A country who is importing
85% of oil through import resources is expecting another raise in
prices from Saudi Arabia. The price was stable at 70USD per barrel,
and it is expected to shoot to USD 96 per barrel
This will badly affect most of the Asian countries as the price hike
is applicable to Asian countries. India was outsmarting, by
importing oil from Iran and Russia against rupee payment terms.
This tactic is only a short-term affair as import from Russia and Iran
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
is not to the level it was expected. We needed to depend Saudi
Arabia again for its oil needs.
2. TRUMP2.0 AMERICA FIRST, WORLD LAST If the inaugural
speech of Mr. Donald Trump is any indication, America first and and
hell with the rest. Make the rest to pay to make AmericaGreat again
(MAGA).
3. CENTRAL BANKS AND GOLD PURCHASE Central banks all
over are in a gold purchase spree and RBI stand second in the gold
accumulation as a reserve. RBI have purchased about 73 tons of
gold during the current fiscal and our total reserves are about 876
tons of gold.
BANKING
1. BANK LOSES ITSCHARM ON IBC AS A RECOVERY MODE.
The
insolvency and Bankruptcy Code (IBC), supposed to be an
innovative transformative mechanism is
losing its charm. Bank showing reluctance to tap this channel for
recovery, may be owing to the delay in admissions. The number
of cases admitted is decreasing on a year-to-year basis, The
recovery percentage is also down to 28%, whereas in previous
years, it was as high as 46%. The delay in admitting the case is
supposed to be the main issue. Against a prescribed time of 14
days, it takes more than 400 days. This confidence erosion has
ended in looking alternate options like Asset Reconstruction
companies
2. YEAR OF CREDIT CARD FOR BANKS Despite the system wide
stress in unsecured segment, credit card players are adding up
cards to their portfolio, and SBI and HDFC are in the forefront.
The industry has added around 820000 credit cards in the month
of December. Have a look at the interesting data
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
2024 May
7,60, 625
June
5,12,641
July
7,55,519
August
8,55,931
September
6,78,950
October
7,86,337
November
3,50,055
December
8,16,195
The total credit card in circulation is around 108 million by end of
December 2024.
3. DIGITAL PAYMENTS BEYOND BANKING CHANNELS As is
the present practice, millions of transactions are being recorded
in bank accounts. Every transaction makes a separate entry in
your bank accounts. If these transactions are routed through
Mobile wallet than bank account, such incidences in your bank
accounts can be avoided. Customers are induced to use their
mobile wallet than bank account for small payment transactions.
FROM RBI
1. CHANGING LIQUIDITY COVERAGE RATIO AND BANKS From 1st
April, RBI is going to have revised liquidity ratio and banks’ lending
funds may be further curtailed. They are forced to invest more on high
liquidity liquid assets. LCR norms are aimed at mitigating risk arising
from a likelihood of substantial online withdrawals. It is reported, that
banks must find out another 4-5 lakh crore of liquid funds to meet the
revised LCR, if implemented as proposed by RBI
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
INSIDE OUT
1. SAIF ALI KHAN AND MEDICAL INSURANCE CLAIM It is reported
that the Insurance company promptly reimbursed Rs.25 lakhs within
hours to Lilavati Hospital and balance amount of Rs.11 lakhs on the day
of discharge. No FIR was asked, as is being done in medico legal cases.
The company has approved cashless request waiving this requirement.
The question is now raised by the Association of Medical Consultants
Mumbai, to IRDAI
2. HDFC BANK MEGA LEASE DEED HDFC bank picked up a 4.5 lakh
square feet office for a 10-year lease for a total payout of Rs.1020 crore
at Andheri, Mumbai. It has an inbuilt enhancement of 15% rental pay out
every three years. It has seven floors and 227 car parking slots. A still
higher lease story is from JP morgan for Rs.2,253 crores.
3. BANK STAFF ENDS LIFE OVER WORK STRESS A bank employee
working as assistant manager in a public sector bank from the Hyderabad
city died by suicide. She reportedly complaining of increased pressure at
work place. A similar news from UP that A 35-year-old man allegedly
jumped in front of a train at a railway crossing here at Jhancy with
police suspecting that he committed suicide due to work-related
stress. Two more cases are reported from Bangalore and Noida in
September, owing to stress at Workplace.
HOLD ON, THE SKY IS FALLING!
It is again about the stress, work-life balance, health of the banking
executives of tomorrow who are held as the backbone of the economy.
Just to raise alarms about the amount of stress that the junior bank
officers are going through and the ridiculous management models in the
name of monitoring/facilitation which are still prevalent in this era of
Artificial Intelligence.
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
Excerpts from an article written by Dr. V P Gangadharan regarding the
stress levels of bankers in Mathrubhumi dated 28.01.25.
Dr. Gangadharan is a celebrated oncologist in Kerala, who is a
personification of kindness, humility, who has lots of compassion towards
his patients. He has been an expert in treating Cancer and the fatalities
of the disease.
A lady named Alice (an imaginary name) is a bank manager and has been
a patient of Dr. Gangadharan for treatment of breast cancer. Her left
breast had been removed in surgery and she was on her way to recovery.
She is such a bold person that the after-effects did not upset her, but
ironically her targets for the month of March did.
She had been visiting Dr. Gangadharan for regular checkups
accompanied by her husband. Once, in one of her routine visits, she was
visibly upset. The doctor was surprised that she was anxious more about
her target than her troubles post-surgery. The doctor was shocked when
she requested the doctor to help her fetch a couple of deposits for some
time. Every review meeting at the office left her with a feeling that she was
good for nothing. Nobody could understand her trauma, be it her
husband, friends, or family. Not much later, stress had its grip on her
showing symptoms like headache, vomiting, increased blood pressure,
increased heart beat (which she could hear clearly), breathing trouble etc.
“I'm fed up, doctor!” was the regular outcry of the lady during her regular
medical visits.
Sleeping troubles, body ailments along with household chores made her
contemplate of suicide.
The trauma was unending!
Dr. Gangadharan ends the write-up by stating that he indeed obliged her
request by canvassing some business for her.
This reminded me of the Shark theory of management.
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
Japanese people love to eat fish very much and it is part of their daily
menu. They liked to cook freshly caught live fish. They go to the deep sea
for fishing and keep the caught fish in a water tank in the ship to keep it
alive. But by the time the ship reaches shore, they find the fish is alive,
but not active. They will be as good as dead. They experimented by
putting some chemicals in the water to make them livelier, but not
successful. One day, when they were in the deep sea for fishing, a big
shark was trapped in the net. With much difficulty, they brought it inside
the ship. They decided to put it in the tank. Some doubted that the shark
might end up eating all the fish in the tank. But another section of
fishermen said that the shark would eat only a few fish, enough to satisfy
its appetite. They decided to make a try. They put the shark in the water
tank where fish are put.
Much to their dismay, the experiment was successful. But along with that,
they found a solution to bring thriving fish to the shore. The shark eats a
small number of fish only. But all the remaining fish would be vigilant to
escape from the shark.
If this theory makes you find a similarity to the episode that was mentioned
above, then it is unintentional. But I have observed that seasoned, downto-earth officers turn to become sharks when they reach the top. It is a
disease, requiring treatment. It can be cured if treated well in the initial
stage. It is a disease affecting not just the one person, but others and
industry in the collective.
But the question that remains, who will bell the cat...?
WHAT IS GREENSPAN-GUIDOTTI RULE
The Greenspan-Guidotti rule is a guideline for emerging market economies
regarding their foreign exchange reserves. It suggests that these countries
should maintain reserves equal to or greater than their short-term external
debt, which is debt with a maturity of one year or less. The rationale behind
this rule is to ensure that a country has enough liquidity to withstand a
sudden stop in capital flows, thereby reducing the risk of a financial crisis.
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NIBODHAA BANKING AND FINANCIAL NEWSLETTER
In essence, the rule aims to promote financial stability by ensuring that a
country can meet its short-term external obligations even in times of
economic stress. It was named after Alan Greenspan, the former Chairman
of the Federal Reserve, and Pablo Guidotti, a former Argentine finance
minister and economist.
LEARN AND PRACTICE MEDITATION FREE OF COST?
IRRESPECTIVE OF YOUR CASTE OR BELIEF SYSTEM
PEACEFUL LIFE STYLE PRACTICES.
OUR KVN NAMBOODIRI IS A CERTIFIED TRAINER FROM
HEARTRULNESS INSTITUTE, HYDERABAD
SERVICES ARE ABSOLULTELY FREE TO INDIVIDUALS OR IN GROUP
ANY TIME YOU CAN CONTACT.
KVN NAMBOODIRI, 7559960659
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