Archives: Volume 4 •  Number 1  • January 2010

Pre and Post Merger Financial Performance of Merged Banks In India - A Select Study

The 1990s saw partial liberalization of the banking industry and the emergence of new private sector banks as well as international banks. During the next few years, fears of liberalization were put to rest and in the past decade, the banking system has gained much from it. Liberalization brought out the best in the industry; inducing competitive spirit among various banks. Also, during this period, the banks put in place effective risk management mechanisms and added fresh capital, which is very important to the banking industry. By concentrating on the top-line and bottom-line, banks across the board have improved their profit while reducing their operational costs and more number of banks have improved their financial performance by using the concept of mergers and acquisitions.

Dr.K.Srinivas
Principal
KGR Institute of Technology and Management,R.R.Dist
Andhra Pradesh
kamatam_srinivas@yahoo.com

A considerable number of empirical studies exist which incorporate different measures of uncertainty in analyzing its impact on investment. Whereas Caballero (1991), Hartman (1972), Abel (1983), and others point to the positive impact of uncertainty on capital intensity of production under irreversibility of investment, McDonald and Siegel (1986), Dixit and Pindyck (1994) find that uncertainty is damaging to investment. Their argument is that in the long-run, the user-cost effect would dominate and that increased uncertainty in the long run would increase the expected capital stock under irreversibility and can increase it even more under reversibility. Actually, however, whether the increase in the expected long-run capital stock is larger under reversibility or under irreversibility depends on the choice of parameter values. Almost the entire investment literature assumes a linear relationship between uncertainty and investment but the uncertainty- investment may be non-linear. Sarkar (2000) and later Abel and Eberly (1999) provide an excellent interpretation of the non-linear relationship between investment and uncertainty. Sarkar (2000) points out that an increase in uncertainty increases the probability that the investment threshold will be crossed so that the probability of investment taking place within a specified time period increases. Sarkar’s approach to investment (which is an option pricing approach) suggests that the investment- uncertainty relationship can be described by an inverted U- shaped curve. It is strange that the entire empirical literature has ignored this.

Amaresh Das
Visiting Professor
Southern University at New Orleans and University of New Orleans
LA,USA
adas2@cox.net

The Future of Islamic Banking in India

The rhythm and the swiftness with which number of Islamic Banks are coming up across the world have astonished many banking experts. Many international banks like Citi Bank, HSBC Bank, Standard Chartered Bank, etc. have already opened Islamic Banking divisions across the world, especially in several West Asian countries, Europe and USA.All this has eventually made it worthwhile to study the reasons for their incredible expansion and progress. Through this paper, an attempt has been made to find out the reasons for their growth and development and to find out their outstanding features. Islamic banking refers to a method of banking that is based on Islamic Law (Sharia) which prohibits ‘interest based banking’ and permits only ‘profit sharing based banking’. The concept is based on a verse of the Holy Quran that says “Allah has allowed only legitimate trade and prohibits interest”. It is against interest as interest is believed to lead to exploitation and unproductive income.

Amit Gupta
Senior Lecturer
R.P.Inderaprastha Institute of Technology
Karnal, Haryana
amitgupta_0878@yahoo.com

Indian Women Entrepreneurs Issues and Prospects

Entrepreneurship is the propensity of mind to take the risk with confidence to achieve a pre-determined business or industrial objective. Encouraging entrepreneurship symbolizes innovation and a dynamic economy. So it is the function of creating something new, organizing and coordinating it and undertaking risk and handling economic uncertainty with confidence. Entrepreneurs organize the business by using various traits and tactics like leadership, innovation, decision making and managerial caliber so as to run their business profitably.

Raminder Bhatia
Lecturer
PG Department of Commerce & Business Management
Lyallpur Khalsa College
Jalandhar,Punjab
ramangoldy@yahoo.co.in

Baljinder Kaur
Lecturer
PG Department of Commerce & Business Management
Lyallpur Khalsa College
Jalandhar,Punjab
   baljinder2410@yahoo.com  

Global Financial Crunch And India's Economic Growth : A Deep Insight

The whole world was again reminded of the Great Depression of 1929 when on 15th September 2008; the world famous investment bank, Lehman Brothers filled their claim of bankruptcy.15th September 2008 was the day when the extent of the catastrophe of the financial market was made known to the entire world. It was just like a “financial tsunami”. Infact, whether it was the Great Economic Depression of 1929 or the Financial Crisis of 2008, all these are genesis of the heedless race of interminable gain (capital).
 

Dr.F.B.Singh
Reader
Faculty of Commerce
BHU,Varanasi
Uttar Pradesh

Ajay Pratap Yadav
Research Scholar
Faculty of Commerce
BHU,Varanasi
Uttar Pradesh
ajaypy@gmail.com

Sustainable Growth Rate - A Case Study On Wipro and Infosys

n the present era of highly competitive environment, companies are striving hard to earn a reasonably good profit to increase the shareholders’ wealth. The increase in the wealth of the shareholders depends upon a target profit which can be achieved within a reasonable period of time. Now the question remains– how an investor is let to know how long earnings growth can last. The easy way to gauge such a situation is by calculating the company’s sustainable growth rate (SGR).

C.T.Sam Luther
Professor & Head
Department of Management Studies
Nesamony Memorial Christian College
Kanyakumari Dist
Tamil Nadu
samluther2002@yahoo.com