Download - Strategies of Growth & Time and Cost
-
7/29/2019 Strategies of Growth & Time and Cost
1/18
-
7/29/2019 Strategies of Growth & Time and Cost
2/18
-
7/29/2019 Strategies of Growth & Time and Cost
3/18
PRUDENTIAL NORMS
MARKET DISCIPLINE
BENCH MARKING BY INTERNATIONAL STANDARDS
UNIVERSAL BANKING
TECHNOLOGY IN BANKING
H.R.D. IN BANKINGTHE ROLE OF ECONOMISTS
-
7/29/2019 Strategies of Growth & Time and Cost
4/18
Strong & resilient financial system key pre-requisites forfinancial stability & economic progress.
This has been supported concurrency by heighteued
market discipline, pre-active & comprehensive supervision
of financial system.The New Basel Accord rests on three mutually reinforcing
pillars:-
1. Minimum capital requirement
2. Processes of supervisory review3. Market discipline
-
7/29/2019 Strategies of Growth & Time and Cost
5/18
Processes of transparency & market disclosure of critical
information describing the risk profile, capital structure &
capital adequacy are assuming increasing importance in the
emerging environment.
Banks are currently required to disclose in their Balance Sheet.
Information on maturity profiles of Assets & Liabilities.
Providing Information on capital, provisions, share holdings of
the government, value of investments in India & Abroad.
-
7/29/2019 Strategies of Growth & Time and Cost
6/18
An Important development in this regard has been the move to
set up universally accepted standards & codes for Bench
Marking Domestic Financial System.
There are three levels at which action is necessary :-1. Legal
2. Policy & Procedure
3. Market Practices by Participants
-
7/29/2019 Strategies of Growth & Time and Cost
7/18
Banks have undertaken traditionally non banking activitiessuch as :-
1. Investment Banking
2. Mortgage Financing Securitisation
3. Particularly Insurance
-
7/29/2019 Strategies of Growth & Time and Cost
8/18
In the Banking Sector it can reduce costs, increase volumes &
facilitate customized products.
-
7/29/2019 Strategies of Growth & Time and Cost
9/18
Factors such as skills, attitudes & knowledge of personnel
play a critical role in determining the ability of banks to deliver
value to customers.
H.R.M Strategies include managing change commitment,
achieving flexibility &improving the team work.
-
7/29/2019 Strategies of Growth & Time and Cost
10/18
Today's operational aspects of the functioning of banks are
attracting intensive research by professional economists in
measuring & modeling different kinds of risks faced by banks,
the behaviour of risk return relationship associated with port
folios & the impact of fluctuations in financial market.
-
7/29/2019 Strategies of Growth & Time and Cost
11/18
-
7/29/2019 Strategies of Growth & Time and Cost
12/18
INTRODUCTION
Delays & cost overruns in public sector investmentscan raise the capital-output ratio in the sector &
elsewhere, bringing down the efficacy of investments.
Yet there are no estimates of the delays & cost
overruns & of their opportunity cost.
A study arrives at rough estimates of the delays and
cost overruns, and the opportunity cost in terms of the
extra capital X time that is used up. Cost overruns (at80%) and the extra `capital X time' incurred (about
190%) are very large; even after removing the
increase due to inflation!
-
7/29/2019 Strategies of Growth & Time and Cost
13/18
Cont
The Public Sector (PS) occupies an important place in the Indian
economy. As a leading sector, a substantial part of the autonomous
investments arise therein. These investments pull (and push) along
other investments in the private corporate and small and cottage
industries
Delayed investments, have the evident effect of lowering
the growth rates from planned ones. If cost overruns are pervasive nd
increase the cost of investment in real terms, they raise the capital -
output ratio in the PS, an effect which can spread to other sectors if
the PS raises the prices of its output, since much of the output of the
PS constitutes input to the private sector and to itself. The
transmission mechanism is through price increases of investment and
intermediate goods at a higher rate than price increases of other goods
-
7/29/2019 Strategies of Growth & Time and Cost
14/18
Extent of delays and cost
overruns :
Delays in project implementation and the attendantcost overruns have become a regular feature of publicsector projects.
Delays have been there right from the early sixties
One of the motivations in setting up the ProgrammeImplementation Ministry was to monitor and report onproject implementation related to public sectorinvestments.
Since the mid-sixties delays and cost-overruns haveincreased, trends in delays and cost overruns in publicsector projects are difficult to compile because theinformation is not available.
-
7/29/2019 Strategies of Growth & Time and Cost
15/18
Cont
As on March 31, 1987, there were 290 medium &
large projects in the Public Sector under
implementation.
They include only projects sponsored by thecentral Government.
Of these, 186 had cost overruns. Similarly, 162
projects had time overruns or were anticipated to
have time overruns.
-
7/29/2019 Strategies of Growth & Time and Cost
16/18
REASONS or PROBLEMS
Poor project design & Implementation
Inadequate funding of projects
Bureaucratic indecision Lack of coordination between
enterprises
Faulty appraisal by the government..
-
7/29/2019 Strategies of Growth & Time and Cost
17/18
Cont
Thin spread of financial resources
Technical and other incompetencies
Problem with foreign technicalcollaborators
Delays on the part of contractors and
equipment suppliers.
Failure of coordination by the
government
-
7/29/2019 Strategies of Growth & Time and Cost
18/18