The annual Economic Survey has put the ball in the government’s court. Now its for the government to decide whether to bite the bullet. As 2009 is going to be an election year, most of these recommendations looks like will be buried for the time being.
Selling a stake in the PSU will be impossible for the UPA government to pursue. The commies are surely going to raise a stink. Also with elections coming up, the commies have got nothing to lose. The 60 hour working week is something that is much necessary. Everyone knows how corrupt our government sector is and how much of work a normal government employee does in a normal day (for examples walk into any public sector bank or any other government office). Its time for someone to hold the whip and make them work, even if it looks like slave drive.
• Complete selling of 5-10% equity in previously identified profit making non-navratnas, must list all unlisted PSUs and sell a minimum of 10% equity to the public.
• Auction all loss-making PSUs that cannot be revived and those where net worth is zero, allow negative bidding in the form of debt write-off.
• Allow a share for foreign equity in all retail trade and 100% foreign equity in foreign-branded, specialized retail chains.
• Raise foreign equity share to 49 per cent as well as allow 51 per cent foreign equity in a special category of insurance companies that provide all types of insurance to rural residents and for all agricultural related activities including agro-processing.
• Increase work week to 60 hours (from 48 hours) as well as set the daily limit to 12 hours to meet seasonal demand through overtime.
• Allow 100% FDI in greenfield private rural-agricultural banks with the caveat that such banks would be free to set up any number of branches in any rural or semi-rural area. These banks should be free to lend to agriculture & allied sectors as well as to any industry located in non-urban area.
• Amend Coal Mines Nationalisation Act to allow regulated private entry into coal mining.
• Phase-out controls in sugar, fertilizer and drugs.
• Sell old oil fields to private sector for application of improved or enhanced oil recovery techniques.
• Implement Open Access in a manner that shifts focus from a distribution company to “wire owners”. The intent is to allow access to electricity pillars to “string” wires and make wire owner accountable for T&D losses. Allow private (corporate) investments in nuclear power.
• Some of the other reform options include allowing public bus transport systems in cities and metros to be run by private companies; introducing a separate section on bankruptcy in the company law; form a public sector rail track company to own new tracks and signals and thereafter allow free entry of private and public-private partnership rail freight companies.
+++
If HDFC bank and Centurion bank of Punjab merge then, it will be one of the biggest mergers India Inc has ever seen. The merged entity will be the third largest bank in India with a total asset size of over Rs 2 lakh crore, but still way behind its private sector rival ICICI Bank.
Also HDFC Bank’s 700 branches will see an addition of 390 branches of Centurion, which has a stronghold in the North and South of the country.
The market capitalisation of the combined entity is likely to be at Rs 65,000 to 70,000 crore. Though there may be cultural issues that both banks have to tackle post the merger, it will not be tough for both HDFC Bank and Centurion to integrated as the duo seems quite experienced on the M&A front.
Full article here.
+++
Finally after a lot of dithering, the global markets caught the sub-prime flu and what a crash it was. India was the worst performing market today. Almost 1400 points (7%) down in a single day. None of the stocks were spared. Every sector was in the red.
Now is the time for bargain hunting. Whoopie. Am gonna buy now. FMCG, Pharma, Banks, Infrastructure, Finance, Real Estate, everything is damn cheap now. Nothing has changed in a day or two. The India growth story is intact. The fall was more of a sentiment thing regarding the sub prime crisis in the US market and also the market has been going up almost daily. A correction was inevitable. Yes, a portion of my portfolio is in the red, but then Iam not concerned, cos am here for the long term.
I know it wont be prudent to say, but i wish for more such days. Now is the right time to buy. Like the pundits say
Buy when everyone sells and sell when everyone buys.
Above pictures courtesy: Rediff
+++
Picture source: Rediff
Indira Nooyi at Pepsico and now Vikram Pandit at Citigroup. Slowly but surely, Indians are climbing up the management ladder in some of the most fiercest job environment in the world.
Earlier there were rumors of probable job cuts in Citigroup. Some estimates are at 10% of the workforce. Bad times for an extremely mammoth and complex financial organisation. How will Vikram steer through the sub prime mess that has already claimed the previous CEO Charles Prince as its victim is something that would be watched very closely.
India-born Vikram S Pandit has been appointed the chief executive officer of Citigroup, the world’s largest financial services organisation, with immediate effect.
The 50-year-old Pandit from Mumbai and Nagpur, has also been made a member of the board of directors, ended a weeks-long high level search for a new person to lead the New York-based banking giant after former CEO Charles Prince stepped down on November 4 following huge investment losses for Citigroup.
Pandit, who was Citigroup’s investment banking head before his new appointment, also briefly headed a hedge fund called Old Lane earlier this year.
Pandit has also held a number of senior positions at Citigroup rival Morgan Stanley for more than two decades, including the post of president and chief operating officer of the Institutional Securities Group, which included the company’s investment banking, fixed income and capital markets businesses.
Full article here.
+++
Read good reviews of this book in some website and so went ahead and picked up the book from the library. Have finished almost half the book (such a speed is quite rare for me).
One thing that i realised while reading this book is that without even having read this book, i do follow almost all that the author (Scott Pape) has mentioned, in my daily financial dealings. I do…
- Monthly systematic investments in a combination of mutual funds.
- I also do direct equity investment. I dont follow any hot tips while buying shares but do considerable research before buying a company’s share.
- I have a separate bank account that gives me better rate of interest in which i deposit around 10% of my monthly salary. This money acts as an emergency fund for me.
- I dont do impulse purchase. In fact, I dont shop at all. The last time i shopped for clothes was during my last trip to India in August 2006. And the last shoe i bought was about 2 years ago. Still, my wardrobe is full.
- I find no reason to keep up with the way the society lives, shops and dines.
- I dont go for unnecessary holidays just because the air fares are cheap. Because, the real expenses hit you only after your plane touches down.
- I consciously make an effort to commute only by bus or train. I never take a taxi unless i have something very heavy to carry.
- I save and invest more than 50% of my monthly salary.
The book is quite good. Though, the author does repeat quite a few things. Neverthless, the writing is pretty easy going and funny with a lot of stories thrown in for easy understanding.
My rating **** (4/5) A must read
+++
Twitter
LinkedIn
Facebook
RSS
Delicious
Email