CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT, KENGERI CAMPUS

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1 Vo l u m e 3 (`) CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT, KENGERI CAMPUS

2 In this Issue 02 MICRO FINANCE 03 RBI COLUMN 04 SELF HELP GROUPS 05 COMMERCIALIZATION 06 STOCK ANALYSIS 10 CAMPUS POLL 11 PHOTO FIND 12 FINANCE QUIZ 13 CROSSWORD 14 ANSWERS 15 NISHKA TEAM

3 MICRO FINANCE ANINDITA NATH 1 MBA- A DEVANG KATARIA 1 MBA- A ` 02

4 RBI COLUMN BHARGAVA MANIKANTA SONTI 1 MBA A 03

5 SELF HELP GROUPS- BANK LINKAGE PROGRAMME BRISTI CHOUDHURY 1 MBA-D Govt Subsidy 04

6 MICRO FINANCE Commercialisation of Micro Finance- A Bane R VENKAT RAMAN 1 MBA - B 05

7 STOCK ANALYSIS AJO JOSEPH 1 MBA -A Key indices reported gains for third straight session of trade to settle at a 19-month high triggered by firm global stocks. The BSE Sensex was up points or 1.75% to 19,170.91, with the index settling above the 19,000 mark. A positive market sentiment was noticed after the deadlock in Lok Sabha ended on 29 November 2012, after Speaker Meira Kumar allowed a debate in the Lower House on foreign direct investment (FDI) in multi-brand retail under Rule 184 that entails voting. Eleven of the 13 sectoral indices on the BSE showed gains. As f a r a s i n d i v i d u a l c o m p a n y performances are concerned cigarette maker ITC and Reliance Industries edged higher. Bajaj Auto mounted record high. India's largest commercial vehicle maker by sales Tata Motors jumped over 4% after company on 27 November 2012, when it announced its maiden entry in the Bangladesh new car market, introducing two sedans and a hatchback. Bank stocks rose with HDFC Bank hitting a record high. Larsen & Toubro rose after announcing that L&T Construction has secured new orders worth over Rs 1178 crore across various business segments in November

8 FINANCE BUZZ NAVEEEN KUMAR M 1 MBA- D 6) Financial Self-Sufficiency (FSS): Total operating revenues divided by total administrative and financial expenses, adjusted for low-interest loans and inflation. In a microfinance context, an institution is financially self-sufficient when it has enough revenue to pay for all administrative costs, loan losses, potential losses and funds. 7) Viability: Refers to financial and institutional viability. Financial viability is the ability of a microfinance institution (MFI) to cover its costs with its interest and fee revenues. Institutional viability is the capacity of the institution to continue to thrive as a sound service delivery organization. Viability allows MFIs to maintain their operations into the future, independent of donor subsidy or grant funding. 8)Development Finance: Term that encompasses all financial services provided to low-income clientele in less developed nations - including microloans, micro savings, micro insurance, etc. 08

9 SECURITIZATION OF MICRO LOANS SOUMYA BALAKRISHNAN 1 MBA-B Benefits of Micro securitization: Allows the MFI s to focus more on improving outreach of their operations. Enables the poor to either save or invest by holding a more reasonable rate of return. Securitization of micro loans will require more inclusion which will lure more savings, thereby resulting in the overall development of the economy. Problems: Short maturity of less than a year in case of micro loans as against various long term mortgages. Risk due to continuously being able to replenish the portfolio of underlying micro loans. Inflexible, rigid and non-existent regulatory structures as well as the various rating problems of many emerging markets are also a roadblock. 07

10 MARKET ROUND UP ANKIT MEHROTRA 1 MBA-D ANUBHA 1 MBA- B Source:-Finance Ministry, Office of Economic Advisory, HDFC Securities reports, Ministry of Commerce 09

11 10 ANKUSH KUMAR SINGH 1 MBA - B

12 PHOTO FIND R VISHNU VARTHANA 1 MBA -D T KIRUTHIKKA DEVI 1 MBA - A

13 FINANCE QUIZ 1. Name the economist who received Nobel Peace Prize for his efforts in economic & social development through the concepts of microcredit & microfinance. 2. Name the two channels through which microfinance operates in India. 3. Name the body responsible for the development & regulation of microfinance in India. 4. What is the credit limit that could be provided to SHGs (Self Help Group) by banks without insisting on collateral security as specified by the RBI? 5. Expand SIDBI. 6. Which state was considered as the microfinance hub of India? 7. What is the average size of microfinance loan in India? 8. What is the estimate of the microfinance loans defaulted in the state of Andhra Pradesh that lead to a major turbulence in the industry? 9. Which is the largest Microfinance Institution (MFI) in India? 10. Expand CRISIL. 12

14 Crossword ABHISEK SAHU 1 MBA-C 13

15 ANSWERS FINANCE QUIZ 1.Dr Muhammad Younus 2.SHG-Bank Linkage Programme (SBLP) & Micro Finance Institutions (MFIs) 3.NABARD (National Bank for Agriculture & Rural Development) 4. ` 5 lakh 5.Small Industries Development Bank of India. 6. Andhra Pradesh 7.$ More than $1.5billion 9.SKS Microfinance 10.Credit Rating and Information Services of India Ltd. 14

16 N I S H K A T E A M NISHKA is a monthly inance magazine brought by the students of the inance 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 inance. CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT, KENGERI Please mail your valuable feedback, reviews at nishka@mba.christuniversity.in FOR PRIVATE CIRCULATION ONLY