Acting affirmatively

Finally, India Inc. has come with the proposal to support affirmative action enlisting steps like paying stipends to students from backward class, imparting training on entrepreneurial skills and imposition of cess on corporate profits to fund elementary education. However, they have made one thing clear that they will not accept any quota of jobs in the private sector. This seems to be a very well thought out strategy as in the absence of these initiatives, Government may force them to reserve jobs for people from backward classes, which may adversely affect their operational efficiency.

This should serve as a food for thought for the elite institutes in India imparting technical and management education particularly IITs and IIMs, who are also opposing the proposed reservation policy of the Government for the students from backward classes. As we know that students desirous of getting admission in these institutes have to clear entrance examinations viz. CAT, IIT-JEE etc. and there is cut-throat competition for achieving this.

What these institutes should do is to be a mean as well as the end. Rather than giving the direct admission to these students from disadvantageous section, with concession in marks secured, these institutes should help them in cracking these entrance examinations. These institutes should organize pre-examination training courses for these students. These courses have to be very similar to what being offered by training institutes like IMS, Brilliant Tutorials, Career Launcher etc. These training institutes provide wholesome training which helps in tackling not only the written examinations but also subsequent selection rounds of Group Discussion and Personal Interview. However, they charge hefty amount which only well-off students can afford to pay and thus, others loose an opportunity to practice well.

IITs, IIMs can utilize their rich experience in the field of education and impart these courses at the cost or even free by leveraging their cash reserves. These courses can be short-term with duration ranging from one month to three months and these being offered at different centres across India, where their entrance examinations are held. In fact similar approach is being followed by majority of the Public Sector Banks during their recruitment for the posts of clerks/probationary officers, with training classes being held before the examinations. Though this will entail additional administrative efforts from these institutes but still it is better than providing reservations at the cost of merit. Further, such an initiative will also be fair to the students from general category, who toil hard to get admissions after spending huge amount.

This will help in creating a level-playing field for all the students irrespective of their caste and economic well-being. Even students from disadvantageous section will support this action as they will be proud of getting admission though their hard work rather than a Government policy. These classes will also help them in their personality development. Also, Government will take this initiative very positively and may not ask these institutes to enforce reservations.

IITs and IIMs should remember that they have been established by Government and they cannot overrule boss’s wishes. What they indeed do is suggesting their boss, various alternatives like these, how are they going to implement them and how is it going to benefit the masses, with a clear message – “We have reservations for meritorious students”.

Ashok Raina and Doordarshan!

"India loose its 2nd wicket. Ashok Raina gets out on 29."

Wondering when did Ashok Raina join Indian cricket team? Ask Doordarshan. This was the news flashed on DD News when India and West Indies were playing their 3rd ODI at St. Kitts. One thing is for sure that the person responsible for this either hates cricket or is a great fan of Ashok Kumar – cinestar of yesteryears because every kid knows about Team India and its members.

Anyways, let us come to the issue. I am talking about the quality aspect in broadcasting. Though these kind of mistakes occur every now and then on any channel or publication, I was thinking whether, over the years, has anything changed on Doordarshan (DD)?

Not much. Deluge of new channels and innovative technology used by them has forced DD to innovate. Not only has it introduced many channels, there have also been some improvements in the telecast and presentation. Particularly, it's news where we were used to see the map of India with some clouds over it. Now, we have more options. We can also see a world map! It has also managed to attract lot many sponsors now.

Actually, except 'Ramayana', 'Mahabharata', 'He-man', 'Spider-man' and off-course kid's favourite 'Shaktiman', we have not seen anything great on DD. Even the movies which are shown on the weekend have already been shown on other entertainment channels. Also, who can forget every over of 5 balls, whenever a cricket match is telecasted on DD.

So, why are we seeing this laxity? If other channels have dramatically improved themselves, why DD could not? However, it had got some different ideas. It had made compulsory for all the cable operators to show some of its channels. After all, this is not a solution. At least it should think about those people who do not have access to cable connection or DTH service.

All said and done, there is something which I have not seen on DD for last few years i.e. 'Rukavat ke liye khed hai'. Have you? Do let me know.

Surprisingly Public Sector Banks!

No matter whatever is the topic we discuss whether it is in economics or business or trade, first half of 90s always comes out as a distinct period. That was the period when we adopted the path of economic reforms or popularly known as the advent of LPG: Liberalization, Privatization and Globalization.

Of course, even banking industry wasn't untouched and what we see now is something which public sector banks (PSBs) could never have imagined and which has become their nemesis. Yes, we are talking about the advent of private banks, the huge market share that has been captured by them and the slew of innovative products being offered by them. Whether it is personal loans, housing loans, fixed deposits, credit cards or corporate lending, they appear to be ruling everywhere.

Who is in fault for this sorry state of PSBs? Of course they themselves are responsible. Being in business for so many years, they could not foresee the future and they kept on leaving the ball thinking that the game is a 5-day Cricket Test Match. However, on the other hand, private banks came out with a professional approach - proper and innovative thinking, hard selling and proactive customer relations armed with latest technology, taking it as a One Day Cricket Match and keeping in mind that an experienced player always prepares in advance, changes the tempo according to the match situation and plays accordingly. Within no time they took the match away from PSBs.

Today, private banks are providing those services, which we could, only dreamt of. If you want to pay your electricity bill, you need not search for a Bill Collection Centre. Instead go to the nearest branch of the bank in which you have account and give them the instructions. Moreover, that's to be given only once! Further, if you need talk-time, don't talk to vendor, go to the nearest ATM and get recharged – cellular phone as well as you! You can also pay your direct tax, service tax and insurance premium in the same manner. If you want an accident insurance cover and a credit card, there is no need of going to an insurance company first and a bank later on. You will get this accident insurance cover free of cost once you apply for a credit card. Also, if you want to undertake any of the above-mentioned transactions, you need not move! Just log on to the Internet: Click of a mouse and it is done!

It is ironical that private banks have forced PSBs to think that a working man/woman needs 8 to 8 banking and Internet Banking. He/She may want to check his/her account balance through his/her cellular phone. Still if one doesn't get time, at least that person can go to the nearest ATM after working hours, which is just at a 2 minutes drive from his/her home. And why ATM in night? Now, 24 Hours banking facility is also available! Let us not forget the Anywhere Banking facility, which has also been initiated by private banks.
Private banks have been a pioneer in providing all these services. Here, it will be worthwhile to mention that foreign banks have also come up with innovative products and services but they are yet to garner a major market share.

However, it does not mean that PSBs have been just spectators. They have definitely made some progress. The question to be asked is that are they too late? Were they sleeping? If after so many years one of the PSBs feels that it needs to change its logo so as to give it a fresh look or so as to give an international appeal, one can only be amazed at this approach. Take another example. A PSB feels that it needs to surprise people with the advertisements that it has the largest number of ATMs in India! So many years after the establishment, it is not a surprise at all. The point being made is that if it is trying to make people realize about this fact then there has been definitely been some deficiency in its approach towards the customers. That's why they don't know this fact. Why did all the PSBs take so much time to realize that cost of a transaction through an ATM is far lesser than that through branch banking!

Instead of being leaders, PSBs have been followers. But it is well said: Better late than never. Gradually PSBs are waking up and realizing the importance of a customer-centric approach.

Criticisms go along with praises. At least PSBs have been able to percolate to the rural areas accompanied by an increase in priority sector lending, which private banks have not been able to do. The probable reason is the low level of social responsibility of business on the part of private and foreign banks. Another notable thing is that by and large PSBs have been ethical as compared to their counterparts in private sector. For God's sake, they don't resort to gangsters or force a common man to sell his kidneys to recover loans. In case of private banks, the fine print is often more dangerous than the bold print on agreements with the customers. What we need is strong corporate governance norms that do not restrict themselves to filling and filing of forms and returns. What we need is good banking practices and clear customer relationship. If not, what is the difference between a Dubai or Karachi based don and a foreign or private bank.
Hence, PSBs are understanding the rules of the game. But now, do they need to score a six on every ball or can they manage by scoring 5 runs an over. Only time will tell this.

It's all about fundamentals!

Now a days, it does not matter whether we read The Times of India or The Economic times. Headline is same. It is about our lovely and respectable 'Sensex' – God for investors! Finally, it has gone down. Not only that, it has also taken many people along with it!

What has happened? Till recently, it was a party time for the investors over last many months. Even beers had come out of the jungle to accompany bulls. People kept on buying in frenzy as if a discount sale was going on. It hardly mattered which share it is. I had heard, "Valuations are attractive", "Fundamentals are strong, you see!" People were talking about the Great Indian Growth story, huge quantity of foreign exchange reserves and many more positive factors. Thank God! The only thing they were not talking about was Indian cricket team's good performance. They even ignored rising oil prices.

Now, scenario has changed. Market has crashed. Nothing has changed about India, its growth, competitiveness and foreign exchange reserves are also still intact. Again somebody said, rising oil prices is a concern. But is it a newly discovered phenomenon? No. It always existed, even during the good times.

Same lot who were making quick bucks earlier are now out on the road, burning Finance Minister's effigy in spite of knowing that he is not the proprietor of Sensex. After all they have to take some blame on themselves. They were on a wild treasure hunt.

It is not a million dollar question – finally, who gained? Since, it is a zero-sum game, somebody must have won. Who? My guess is as good as anybody's. FIIs! Statistics tell us they are selling. It cannot be just because of a draft put up on a website for public comments. These kind of rules are not made overnight. Intelligent investors can always foresee them. So, why this blood bath? Are we witnessing another scam or is it a profit maximization strategy of FIIs. I have got a food for thought. What do you say?