Predatory instincts

Deferment of income tax on profitable co-operative banks is a foregone ask from the government & the RBI. KK Mehra, CEO of Delhi based Khatri Urban Cooperative Bank vociferously asserts “the Finance Minister at one stroke cancelled the benefits that were available to co-opdianerative banks, without realizing its impact. The move will adversely affect banks, as it is an extra burden on co-operative banks, which are already struggling to keep themselves afloat.”

Besides, alternate instruments for augmenting capital is not enough; making these instruments a viable investment options for investors is the need of the hour, which the RBI and the government should realise. Else the deposit base of Rs.1 trillion with these co-operatives will only evaporate one day.

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

Do not tax profitable co-operatives

Co-operative banks which form the backbone of agriculture lending in India have dismal statistics and if we compare them with SCBs they have certainly missed the process of banking evolution. Co-operative banks, which have had the advantage of low cost establishment, 100% refinancing facility from NABARD (leading to cheaper crop loans to farmers), and most importantly local feel and familiarity, have faired well on lending parameter, but pathetic on the recovery front. Perhaps, that’s the reason, why these banks have exorbitant NPAs and are consequently ‘undercapitalised’.

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

Try out Turkey

It was a great day of relief for Abdullah Gul, the Turkish Foreign Minister on October 4, 2005. His elation was visible in his words, he said, “A historic point has been reached today as Turkey has embarked on a new era.” Rightly so! It was only after 40 years of constant internal strife with EU that talks over Turkey’s EU membership could begin.

The point in question is not just 40 years, rather, why 40 years and now what?! Out of 25 nations of the European Union, France and Germany have been constantly cavilling at Turkey’s membership issues, let alone Greece. Back in 1974, when part of Cyprus was captured by Turkey and its ports and airports were closed by it, for any trade, the repercussion from European countries came in the form of financial aid blockade. That led to deadlock in talks of Turkey’s membership of the European Union.

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

Waterways

There’s probably no other country in the world with as many rivers, canals and lakes as India, and yet inland water transport is nearly non existent here. Only 8.9% of the rivers in India are essentially used for navigational purposes. Given the fact that the cost of developing an inland water network is less that 10% of constructing a similar multilane road link and coupled with that fact that India has more than 14,500 km navigable waterways, it is incredulous that all that we have done is to have some paperwork on its potential. An Asian Development Bank Technical Assistance Report had further stated on waterways, “It is also more fuel efficient since it is estimated that one liter of water can move 24 tonkm of freight by road, 85 ton-km by rail and 105 ton-km by inland water transport.”

For complete IIPM article click here

Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative