State Development loans

Everybody knows GOI raises debt but ever wondered how states raise it?

State Development Loans (SDLs) - debt issued by State Govts to fund their deficits. RBI coordinates in selling securities.

SDLs qualify as SLR security (Statutory Liquity Ratio), and LAF - Repos (Liquidity adjustment facility) meaning banks, PD (Primary dealers) can raise short-term money from RBI under Repo facility. And they are approved investment for provident, pension funds etc.

SDL's are traded electronically on NDS-OM (Negotiated Dealing System - Order matching) and in the voice market (NDS). Participants include Banks, insurance cos, provident & pension funds, MFs.

Each state has limits to issue security each year. SDLs carry higher coupon rates than GOI-Sec, though trading is very low.


All states, good or bad financially managed both, are able to raise capital without much difference in coupon rates, which is an anomaly of course. RBI is stressing the need for fair pricing and valuation of SDLs. Its a matter of debate whether to equate pricing of SDL as corporate bonds.

Read this article for more.

Organisation

When certain goals have to be achieved, and individuals have to come together to share work and act with an understanding over a period of time - we say an organisation is formed. Family is also a type of simple organisation.

In our families certain roles are defined e.g mothers make food (or go to offices), fathers go to offices, children are expected to study and achieve good grades etc. A lot of planning goes into this simple organisation like how much money needs to saved, in which school children will study and in future what are they going to be doctor, engineer etc. However roles and relationships become more complex in bigger organisations, corporations.



ORGANISATION: DEFINITIONS

The term organisation can be defined in different ways emphasizing different aspects:

1) Organisation is the form of human association for the attainment of common purpose e.g family, youth welfare association etc. where stress is on cooperative endeavor of human beings.

2) Organisation is the arrangement of personnel for facilitating the accomplishment of some concrete purpose through the allocation of functions and responsibilities. For e.g Public transport system, running of vehicle overseen by crew, maintenance staff upkeep vehicles, then auxiliary staff for support services.

3) Organisation is the pattern of relationship between persons in an enterprise so arranged as to fulfill the enterprise's function. Relationships here mean superior-subordinate relations which ensure hierarchy.

4) For most practicing managers 'organisation is formalized intentional structure of roles', although it sometimes denotes enterprise (the company) too. "Intentional structure of roles" means people coming together must fulfill certain roles.



ROLES
The people who come together to work should know the roles they should play. Designing & maintaining these systems of roles is basically the managerial function of organizing.

For eg. in banks cashier has a role to accept or give cash & loan officer has a role to give credit/Loan. This is not their internal setting for the day (what we call 'jugaad' in hindi), it's formally designed that way, a lot of planning goes into it. Individuals are given a role for a period of time and if they do well (or they've an aptitude for the job) they are continued otherwise they are relocated.

The roles people fulfill should be so intentionally designed that required activities are done & that activities fit together so that people can work smoothly, effectively & efficiently in groups.

To have meaningful roles it should have:
a) Verifiable objectives i.e. at the end of period it should be possible to determine whether or not the objective has been achieved.

b) a clear idea of major duties/activities involved

c) understood area of discretion or authority. For more effective roles necessary information & tools should be supplied.




NATURE OF ORGANISATION
Organisation can be viewed in 2 ways: a) as a process and b) as a structure or framework of relationships.

a) Organisation as a process is a function of every manager. As planning premises changes, so does organisation. Whenever there is a change in circumstances - organisations, people, activities, duties have to evolve. Staffing i.e. recruitment of right kind of people also have to be updated with the changing circumstances. This concept is dynamic view of organisation and it's main focus is on people. A good e.g. I can think of is earlier I never heard of computer proficiency in general recruitments but nowadays nearly all organisations want new people to be computer literate.


Organisation as Structure or Framework of relationships
b) Organisation can also be viewed as internal network of authority & responsibility relationships. It is the working arrangement between people to fulfill enterprise's function.

In any organisation the top management is responsible for policy formulation, middle management for programming, planning and 'rank & file' for implementation. The superior-subordinate relationship ensures the tasks are assigned, responsibilities are fixed, people are held accountable and thus smooth achievement of goals. If it wouldn't for this hierarchy structure enterprises would not have existed. For e.g Army, there is defined hierarchy, roles, responsibility, powers attached to each rank. Our Army is one of the best functioning organisation.

The compilation of organisation structure has to be properly planned & structured. It has to be designed to channel flow of authority & responsibility. The structure once prepared is not liable to change soon. It's a static concept of organisation as against dynamic view of process.

Crimea crises

Invasion of Crimea by Russia - a small peninsula on top of Black sea is in news. Here's what I've collected from around the internet that could be beneficial for students.

Red Peninsula marked 2 is Crimea.

Crimea in southern Ukraine is at the center of what is being seen as the biggest crisis between Russia and the West since the Cold War. Crimea has been fought over - and changed hands - many times in its history. It has both cultural and strategic importance for Russia.




The Crimean War (1853 – 1856): Russia lost to an alliance of France, Britain, the Ottoman Empire over Crimea. The war was documented extensively in news (even in India).

This Crimean war saw active participation from Florence Nightingale; the founder of modern nursing. She was known as "The Lady with the Lamp",  The Nightingale Pledge taken by new nurses was named in her honor only.


Crimea today
Crimea changed many hands, saw many govts and finally transferred by Moscow (erstwhile USSR) to Ukraine in 1954. After disintegration of USSR, it remained with Ukraine only, even though majority of population are Russians. It has a unique political place in Ukraine, it is an autonomous republic within Ukraine, electing its own parliament, governed by the Constitution of Crimea (since 1998). The capital and administrative seat of the republic's government is the city of Simferopol, located in the center of the peninsula.


Crises
The current crises has it's roots in bad finances of Ukraine, and a tussle between EU and Russia. Ukraine had plans of integrating with EU and wanted a loan of $20 billion USD from EU - almost the level of its central bank's currency reserves, for it's Gas bills and debt repayments in 2014 alone. But EU was willing to give $0.85 billion only, that too after Ukraine signs a stand-by-agreement with IMF (which stopped loaning Kiev after it failed to implement necessary reforms in 2011).

But Russia was willing to offer $ 15 billion USD in loans (by buying Ukrainian bonds), and also offered heavy discounts on its gas prices, no strings attached.


Through out this Russia wanted Kiev to join its own customs union (often seen as modern embodiment of soviet union, which now includes Belarus and Kazakhstan) instead of signing the EU pact. Russia had already put in economic pressures on Ukraine, with customs delays and a ban on Ukrainian chocolates, somewhere in August 2013.

The Ukraine's economy is heavily dependent on Russia - these measures put a heavy pressure on their exports and finances. Russians justified the trade embargoes by saying that they are merely protecting its businesses from influx of cheap European goods through Ukraine.


Ukraine's Leaders Cancelled EU Agreement for Russia's Offer
Ukraine's leaders were forced to fall back on Russia's assistance after they failed to meet stringent conditions laid down by EU, IMF (like 40% raise in gas prices, big budget cuts). Ukraine's leaders didn't sign association agreement with EU at it's Nov 2013 Vilnius summit, which resulted in mass protest in what is now called as Euromaidan (literally Eurosquare), protesters were demanding closer European integration and resignation of President Viktor Yanukovych.


Russia’s sovereign wealth fund invested the first $3 billion of the bailout in Ukrainian two-year notes in December 2013. Ukraine scrapped a planned $2 billion bond sale in Feb 2014, according to a statement in Irish Stock Exchange, where the notes used in the bailout program are listed. Ukraine's currency Hryvnia is weakening like anything, a big record CAD and it's ratings being reduced to junk levels are putting tons of pressure on the country. Longer the crises goes on, the higher the risk of a full-blown balance of payments and sovereign debt crisis.


As on date Russian forces have entered Crimea and it needs to be seen what's going to happen there in future.

Allahabad Bank slogan

Allahabad Bank was founded in 1865 at Allahabad, UP. Though it's headquarters are in Kolkata (since 1923).

It was nationalized in 1969. Allahabad Bank is the oldest joint stock bank in India.

Symbol means Triveni Sangam of Ganga,Yamuna and Saraswati at Allahabad.

Slogan/Tagline: A tradition of trust.

Headquarters: Kolkata.

Bank of Baroda symbol

Bank of Baroda was established in 1908 by Maharaja of Baroda, in present day Vadodara, Gujrat. It was nationalized in 1969.

Logo: Baroda Sun - comprises of dual ‘B’ letter forms which hold the rays of the rising sun.

Sun represents what Bank stands for. Single most powerful source of light and energy, which dispels darkness.  Vermillion colour stands for hope and energy.


The Baroda Sun is a universal symbol of dynamism and optimism – it is meaningful and easily decoded by all.

Slogan: India’s international Bank.

BoB has the maximum branches oversees, around 101 offices in 24 countries.

Headquarters: Vadodara, Gujrat.

Vijaya Bank symbol

Vijaya Bank was founded in Manglore, Karnataka.  The bank was merged with 9 smaller banks in 1963-68 & it was subsequently nationalized in 1980.


As it was established on Vijayadashmi Day, hence it was named Vijaya Bank.

Symbol of a polite man in their logo implies ”your partner in progress”.


Tagline:A friend you can bank upon.


Headquarters: Banglore, Karnataka.

advice vs advise

Advice (n) - On advice of my CA, I filed taxes.

Advise (v) - CA advised me to file taxes regularly.


Difference: 1st is noun, other is verb. You can't use ' adviced'. That's wrong, 'advised' is correct.

These 2 are very confusing words. Often in official letters, essays they are used wrongly.



How to remember Advice is noun, other 1 verb?


A way to remember is "Vice" meaning 'immoral or wicked behavior' is always noun. or

"Vice-President" is always an individual and a noun, so you can remember it like this also. So I give my 'advice' to you that you always remember what I 'advised' you.


Watch this video for more.