Imr July 2014

Vol. VIII.
Issue 2 ISSN - 0974 - 3928 July 2014
Indira Management Review

Bi -annual Research and Academic Journal
Research and Academic Measurement of Productive Efciency

Papers
An appraisal of Security Investments by Indian
investors
Banking Industry in India :

Towards a Competitive Landscape
The Impact of Time on The Role Conict of Women
Study on Recovery Performance and NPAs of

Regional Rural Banks
Book Review Managing People at Work
Insanely Simple : The Obsession That Drives

Apple's Success
Indira Group of Institutes

Indira School of Business Studies
Tathawade, Near Wakad Junction, New Pune-Mumbai Road,
Pune- 411 033 (INDIA)
Email : vijai@indiraedu.com Website : www.indiraedu.com
EDITORIAL BOARD
Patron : Dr. Tarita Shankar

Chairperson,
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Group Director,
Prof. Bijoy S Guha

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Improvement Initiatives,
Dr. Renu Bhargava

Director,
Editor : Prof. P G Vijairaghavan

Editor, Publications
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July 2014 ISSN - 0974 - 3928 Vol. VIII. Issue 2

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CONTENTS
Editorial P. G. Vijairaghavan 03
Research and Academic Measurement of Produc ve Efficiency 04

Papers - A Stochas c fron er produc on func on
approach to Indian Industries
M. Manonmani
An appraisal of Security Investments by Indian 16

investors
Joshua O Miluwi
Banking Industry in India – 35

Towards a Compe ve Landscape
N. S. Ranganath
The Impact of Time on The Role Conflict of 43

Women
B. Aiswarya
G. Ramasundaram
Study on Recovery Performance and NPAs of 54

Regional Rural Banks in North East India by
G. P. Bhandari
Book Review Managing People at Work 61

M. S. Rao
Insanely Simple : The Obsession That Drives 66

Apple's Success
Shatabdi Das
All opinions expressed in the ar cles are those of the authors. The editor and
the Publishers bear no responsibility for the same
R
Shree Chanakya Education Society (SCES), Pune, was established in 1994, with the explicit
vision to provide sustainable impetus to the corporate and entrepreneurial abilities in the youth.
The realization that a robust framework of education is indispensable for the growth of global
leaders, the visionary, Ms. Tarita Wakalkar Mehendale, Chairperson, Indira Group, integrated
her pursuit of excellence and articulated educational institutions, known as Indira Group of
Institutes (IGI), which imbibe human excellence and demonstrate strong social values, with a
single minded pursuit of developing the youth to become business leaders.
Unrelenting initiatives by the management team at Indira led to adding of multi-disciplines such
as Management, Information Technology, Pharmacy, Commerce, Science, Engineering and
Mass Communication to the group. And growth has been as deep as it has been wide. With 14
institutions, IGI now offers education right from Kindergarten to Doctorate level studies .
IGI believes in the economic independence of individuals. In this endeavor we aim to inspire
our post graduate students to create a niche for themselves in the Indian Economic order rst,
and then compete globally. We owe our gratitude to the Indian Industry for consistently
collaborating with us in this endeavor. Renowned industrialists have visited us and
tremendously enhanced the morale of our students by sharing their vast knowledge and
experience about entrepreneurial opportunities and foster a spirit of entrepreneurship
amongst students.
Having traversed the journey of twenty years we have ourselves made certain signicant
achievements which we are aware, are but the building blocks for achieving further heights.
 Indira is ranked amongst the top 2 B-schools in Pune, by the prestigious AIMA - IMJ.\
 The same journal gave us a top 30, all India ranking on the parameters of Industry
interface.
 Our students have shown good academic results at the level of university ranking.
 The achievements of our students have enabled them to attract some of the best corporate
recruiters.
 Indira Group of Institutes and our goodwill has enabled us to establish campus agreement
with Microsoft for using different software.
 Our goodwill with Microsoft was further accentuated with Microsoft conducting workshops
at Indira, for train the trainer modules.
 Business India has also ranked us amongst the top 3 in Pune for last 2 yrs.
 Our Institutes have received accreditation from various certifying bodies.
 Indira Institute of Management was the rst management institute in Maharashtra to
receive the accreditation from the NBA, New Delhi.
 We also have our audiovisual centers supported by Harvard Business School, Stanford,
Pyramid Media and Tom Peters Company and we have a vast collection of titles.
02 Indira Management Review - July 2014

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Editorial P. G. Vijairaghavan
The economic climate may not have in 2010. The North East is a Region largely
changed drama cally in the last month, but untouched by economic development for over
the more important climate of hope and 65 years. An interes ng study on the role of
expecta on has indeed made a dent in the me in work-life related conflict situa ons
overall gloom and depressed state in which the A i swa r ya R a m a s u n d a ra m m a ke s s o m e
country had found itself of late. While there appropriate recommenda ons based on the
may not be much sta s cally, to substan ate quan ta ve and qualita ve data obtained in the
this posi vity yet, there are indica ons that course of her research on the subject. Dr
things are set to improve. One of these is the Manon Mani examines the efficient use of
way the world of business looks at the future. If resources by industry and finds ways to get more
any indicator were required to prove the produc ve results through higher exploita on
op mism of India Inc. the behaviour of the of the resources leading to more growth in
Stock Exchange says a lot for the confidence industry and the economy.
that business establishments now evoke
among investors. We can only say this is a This issue features two extremely interes ng
good beginning, since achievements are only book reviews. M. S. Rao writes on Managing
possible where confidence rules. Defea st People at Work by Julian Randall and Allan J Slim.
tendencies cannot dominate progress and While the book seems to be aimed at the
development and one hopes this will signal the student community, it is not necessarily
coming of good days for India's economy. restricted to academics of Human Resource
Management, but contains great takeaways for
A look at India's securi es and investment the Manager at the workplace.
market seems mely and the movement of Shatabdi Das makes an informed analysis of the
funds between investments is the subject of Dr strengths of Insanely Simple : The Obsession
Joshua Mulawi's study in this issue. And as the that drives Apple's Success by Ken Segall, (2012,
engine of growth the banking industry has to Penguin Books, USA). Keep it Simple is an axiom
take the commanding view to lead and guide o heard in corporate circles, but many brands
the country's growth prospects. N.Santosh have simply failed to live up to it; resul ng in
Ranganath takes on an informed search of the their bi ng the dust when otherwise they could
banking industry's role in India's development have reaped a great harvest of returns. And Ken
history especially over the past 25 years; a er Segall a ributes Apple's success to its ability to
the liberalisa on process was set in mo on. keep its strategies simple and devoid of clu er
to be able to come good in the uncompromising
Dovetailed with this ar cle is a brief study en ty that is the market; and Shatabdi Das
by Dr G. P Bhandari, on the performance of seems to agree.
RRBs in the North East, based on their results
Indira Management Review - July 2014 03

Measurement of Productive Ef iciency * Dr. M. Manonmani
- A Stochastic frontier production function approach
to Indian Industries
(* Professor in Economics , Avinashilingam Institute for Homescience and Higher

Education for Women University , Coimbatore-641043)
The ef iciency term describes the maximum This study examined the industry level
outputs attainable from utilizing the available ef iciency so as to identify the sources where
inputs. A production is ef icient if it cannot improvement can be made. The study will
improve any of its inputs or outputs without provide vital information to help individual
worsening some of its other inputs or outputs. industries in using their resources more
Ef iciency can be increased by minimizing ef iciently and to assist the industries in
inputs while holding output constant or by becoming more competitive and maintaining
maximizing output while holding inputs its long term survival. The determination of
constant or a combination of both may frontier technology and knowledge of
increase ef iciency ( Alias Radam et al,2010). productive ef iciency and its relationship with
Productive ef iciency (also known as irm size can provide important insights into
technical ef iciency) is de ined as a situation future Indian industries. Further more,the
in which the most production is achieved relationship between ef iciency levels and
from the resources available to the producer various industry- speci ic factors can provide
It occurs when the economy is utilizing all of useful policy –relevant information. A
its resources ef iciently, producing most comparison of industry's frontier or “ best
output from least input. practice” function and its average practice
function will produce useful information about
Productive ef iciency can be determined by possible future structural adjustments for the
estimating the best-practice production industries.
frontier and individual industries gives the
measure of inef iciency. In view of the Methodology
growing high production costs , productive
ef iciency and pro itability will become Net Value Added (NVA) was taken as output.
increasingly important determinants of the Labour input (L) consisted of both workers
future of Indian industries . In addition to directly involved in production and persons
developing and adopting new production o t h e r t h a n wo rke r s l i ke s u p e r v i s o r s ,
technology , the industries can maintain technicians, managers, clerks and similar type
their economic viability by improving of employees. The invested capital (K)was
ef iciency of existing operation with a given taken into account as capital. Wages included
level of technology.In other word the renumeration paid to workers.The basic data
industries total costs can be reduced and the source of the study was Annual Survey of
industries total output can be increased by Industries (ASI) published by Central
making better use of available inputs and Statistical Organisation (CSO), Government of
technology. India covering the period from1998-99 to
2010-11.All the referred variables were
normalised by applying Gross Domestic
Measurement of Produc ve Efficiency
normalised by applying Gross Domestic error in Y or minoromitted variables. The

Product (GDP) de lator. The GDP at current asymmetric component, in this case distributed
and constant prices were obtained by as a half- normal ~ (N, ), > 0
referring to Economic Survey, published by
Government of India, Ministry of Finance and can be interpreted as pure technical inef iciency.
Economic Division, Delhi. This component has also been interpreted as an
unobservable or latent variable ; usually
representing managerial ability.
Tool of analysis- Stochastic frontier The parameters of v and u can estimated by
production function maximizing the following log-likelihood
function :
A stochastic frontier production ln (Y ~ = In [ ] – Nin + [ 1 – F( λ )] +
function as proposed by Battese and coelli
Where,
(1992) is de ined as :
I = Y1 – f(Xi, β)
 = f(X)εei = +
th
Where Yi, is the output vector for the i irm, Xi /
is a vector of inputs, β is a vector of parameter F = the standard normal distribution function
and  is an error term. In this model, a N = Number of observation
production frontier de ines output as a Given the assumptions on the distribution of v
function of a given set of inputs, together with and u, Jondrow et al. (982) showed that the
technical inef iciency effects. Furthermore, conditional mean of u given is equal to
this model speci ies that these inef iciency
effects are modeled by other observable E ( i\ i) = [ -
explanatory variables and all parameters are
estimated simultaneously. The stochastic Where f and F are the standard normal density
element of this model allows some and distribution functions evaluated at /
observations to lie above the production
Measures of technical ef iciency (TE) for each
function, which makes the model less
irm can be calculated
vulnerable to the in luence of outliers than
with deterministic frontier models. TEi = exp ( -E[ / ] ) so that 0 TE 1
The stochastic frontier is also called
composed error model, because it postulates The Cobb- douglas stochastic frontier production
the error term i as two independent error function in logarithm form is as follows:
components: In VAi = 1n 0+ 1 1n C+ 2 1n i+ 3 1n i + I
 i= i+ u
Where VA represents Net value added per year.
When a symmetric component is Independent variables are C (capital)
normally distributed, ~ (N, ( and L (number of labourers). Parameters
represents any stochastic factors that is 0 denotes the technical ef iciency level and
beyond the irm's control affecting the ability I is elasticities of the various inputs with
to produce on the frontier such as luck or respect to output level.
weather. It can also account for measurement
The productive ef iciency of the irms were calculated by applying the Stochastic frontier
production approach of 4.1c version. The results show the summary statistics of the
variables, maximum likelihood estimates and technical ef iciency for rural, urban and
aggregate industries of India for the reference period under study.
a) Rural Industries
As for primary investigation the summary statistics results of the selected variables of rural
industries are presented in the following table-1.
Table-1
Summary Statistics of variables Rural Industries
Std
Variable Mean Minimum Maximum C.V
Deviation
Net Value Added 2.2454 0.2395 2.00 2.67 10.67
(NVA)
Invested Capital 2.1152 0.1417 1.99 2.40 6.70
(K)
Number of 2.0393 0.0743 1.97 2.18 3.64
workers (L)
Source: calculations are based on ASI Data

Foot Note: C.V - co –ef icient of variation
Mean values of input variables indicate that the industry's main factors of production were both
capital and labour since there were not much differences in their mean values. The magnitude of
variability (C.V) also substantiated this point since the co-ef icients are less for both the inputs.

Table-2 show the maximum likelihood estimates of rural industries of India in the
context of its productive ef iciency.
Table-2
Maximum Likelihood estimated of stochastic frontier production function –

Rural Industries
Source : Calculations are based on ASI Data

oot Note: ** - Signi icant at 5 % level
F
* ** - Signi icant at 10 % level
The maximum likelihood estimates for productive ef iciency of rural industries show that in
single output case, parameters of capital input was positive and statistically signi icant. Hence
capital is main input factor for these industries as its value was higher than labour. The co-
2
ef icients of σ and γ were statistically signi icant though the sign of them differs. It reveals that
estimated levels of output considerably differ from their potential levels due to factors, which are
within the control of the industries. The estimated value of γ indicated the absence of ef iciency
gap that exists between the actual and potential level of performance which is mainly due to
technical ef iciency of the industries. The statistically insigni icant co-ef icient of μ term indicated
that it followed a normal distribution and the positive and statistically signi icant co-ef icient of η
indicated that ef iciency increases in getting production overtime. The summation of the
elasticities of factors of production, indicated return to scale of 1.65. The value of return to scale
greater than unity suggested that increasing returns to scale prevails. One percent increase in
inputs (labour and capital) resulted in an increase 1.16 percent in output level for the stochastic
frontier.
Table-3 presents the year-wise technical ef iciency of rural industries during the period
1998-99 to 2010-11.
Table-3
Technical ef iciency – Rural Industries
Source: calculations are based on ASI data
Average technical inef iciency score=1-average ef iciency/ average ef iciency
In terms of technical ef iciency, the rural industries recorded an average ef iciency of 0.950 (95.0 percent).
The table also reveals that the technical ef iciency of rural industries have not shown any decline but
showed mixed trend. The average technical inef iciency was observed as 0.053, which was negligible.

a) Urban Industries:
The following table-4 provides details regarding the summary statistics of variables
selected for urban industries.
Table-4
Summary Statistics of variables – urban industries

Foot Note : C.V- co –ef icient of variation
It is clear from the table that the mean values of input variable both labour and capital
were the main factors of production in urban industries. The co-ef icient of variation
igures showed that the magnitude or extent of variability in the growth of these
variables were 5.35 percent and 1.616 percent respectively. This indicated that labour
was the main factor without much variation in its contribution to the growth of net value
added. In other words these industries, no doubt can rely more on labour force for the
growth of its output.

Table -5 gives details regarding the maximum likelihood estimates for productive
ef iciency of urban industries.
Table-5
Maximum Likelihood Estimates of stochastic frontier production function –
Urban industries
Source: Calculations are based on ASI Data

oot Note: * - Signi icant at 1% level
F
* * - S i g n i i c a n t a t 5 % l e v e l
* ** - Signi icant at 10 % level
From the table it is clear that since the co-ef icients of both labour and capital were positive, the urban
industries can improve its productive ef iciency by the combined in luence of both labour and capital. In a
single output case, parameter of capital input was positive and statistically singni icant. The co-ef icient of
σ2 and γ were statistically insigni icant. This revealed the fact that the estimated levels output considerably
differed from their potential levels due to factors which were not with in the control of the industries. This is
evident from the value of γ, which indicated the presence of ef iciency gap existed between the actual and
potential level of performance.
The co-ef icient of η indicated that ef iciency increases in getting production over time. The sum of
the elasticities of labour and capital was 1.78. It indicated increasing returns to scale of 1.780. One percent
change in input would bring about 1.78 percent change in output level for the stochastic frontier. Since the
co-ef icient of labour was more than capital ,these industries were labour- intensive.

Table-6 shows year-wise technical ef iciency of urban industries during the period under
study.
Table-6
Technical ef iciency – urban industries

Foot note: Average technical inef iciency score=1-average ef iciency/ average ef iciency
Based on the ef iciency scores it was observed that the average ef iciency score was 0.937 (93.7
Percent). The average inef iciency score was estimated as 0.068. Which explains the fact that 0.68
percent of inef iciency prevails in these industries .

a) Aggregate Industries :
The summary statistics of variables selected for aggregate industries are presented in
table-7
Table.7
Summary statistics – Aggregate industries

Foot Note: C.V - co –ef icient of variation
In the aggregate industries no doubt that both capital and labour are signi icant inputs
equally since there was no much gap in the growth of their mean values. The extent of
variation was estimated to be 6.02 and 0.02 percent respectively in capital and labour.

Table-8 below gives details on maximum likelihood estimates of aggregate industries.
Table-8
Maximum Likelihood Estimates of Stochastic frontier
Production function – Aggregate industries

Foot Note : * - Signi icant at 1% level
*** - Signi icant at 10 % level
The log likelihood estimates of stochastic frontier model show that the co-ef icients of both
labour and capital were positive. In a single output case, parameter of capital was statistically
signi icant. Hence capital is the main, input factor for aggregate industries as its co-ef icient was
2
higher than labour input. The co-ef icients of σ and γ were positive revealing the fact that the
estimated levels of output differ from their potential level due to factors which are with in the
control of industries at the aggregate level. This is evident from the insigni icant co-ef icinent of μ.
Statistically insigni icant η indicated that ef iciency may decline in getting desired level of output
in due course. The sum of elasticities of both the inputs was more than one (1.849) indicating
increasing returns to scale. Since the co-ef icient of capital was more than labour the industries at
the aggregate level is capital intensive.

Table - 9 explains the technical ef iciency scores for the aggregate industries of India.
Table.9
Technical Ef iciency – Aggregate Industries

Foot note: Average technical inef iciency score=1-average ef iciency/ average ef iciency
It is evident from the table that the mean technical ef iciency of aggregate industries score was
0.993. It shows the maximum ef iciency attained by these industries to the extent of 99.3 percent.
The inef iciency score calculated was 0.07. It explained the fact that the inef iciency present in
these industries was negligible.

Conclusion Cultural Change, Vol. 50, No. 2, Pp. 395-425.

Both urban and rural Industries were 4.SunilKumar and Arora, N. (2007), “Technical and
enjoying increasing returns to scale. This had Scale Ef iciency in Indian Manufacturing Sector: A
no doubt made the aggregate industries also cross-sectional Analysis using Deterministic
Frontier Approach”, The Asian Economic Review,
work under increasing returns to scale . The
Vol- 49, No-1-3, Pp-433-452 .
technical ef iciency of rural industries have
not shown any decline but showed mixed Website
trend. The inef iciency present in aggregate www.Annualsurveyo industries.com
industries was zero. But in as indicated earlier
about their inef iciency in future , these
industries can become more ef icient by
increasing output using the existing
resources or by reducing costs given the
current level of production. Labour was the
main factor without much variation in its
contribution to the growth of net value added
in urban industries. Where as capital was the
main input factor for aggregate industries.
The main factors of production were both
capital and labour in rural industries.
Reference
1.Alias Radam and Ismail Latiff, (2000), “Technical
Ef iciency and Productivity Performance of
Malaysian Manufacturing Industries”, The Asian
Economic Review, Vol. 42, No. 2, Pp. 249-262
2.Chidambaram and Muthukrishnan, (2003),
“Operating Ef iciency in Terms of Productivity”,
The Asian Economic Review, Vol.23, No.16,
Pp.323-335.
3.Khem R.Sharma,Pingsun Leung and Halina M.
Zaleski(1996),Research series, Productive
ef iciency of the swine industry in Hawaii, 077
December Pp.2-10
4.Mitra,A.,Dakies, A.V. and Varoudakis, M.A.V.
(2002), “Productivity and Technical Ef iciency in
Indian States Manufacturing: The Role of
Infrastructure”, Economic Development and

An Appraisal of Security Investments Dr. Joshua O. Miluwi*
by Indian Investors
(A comparative analysis of public sector & private sector investors)

(*Associate Professor, Commerce & Management, Career College,
and Visiting faculty, Career Institute of International Management
Barkatullah University Bhopal, M.P.)
Abstract the total assets under their management

The Indian Security Investment Market is amounts to almost 18% of the entire market
considered to be one of the earliest in Asia, capitalization. This paper examines the role of
which is in operation since 1875. Securities these investors in Indian stock markets and
that are purchased in order to be held for inds that the market movement can be
investment. Investor “A person whose explained using the direction of the funds low
principal concern in the purchase of a from these investors.
security is the minimizing of risk, compared
to the speculator who is prepared to accept Key Words: Public and Private Investors,
calculated risk in the hope of making better- Security Investment Markets, Stock Markets,
than-average pro its, or the 'gambler' who is
prepared to take even greater risks. More Introduction
generally it refers to people who invest This paper seeks to examine in this context
money in investment products.” However, it whether reform in the Indian Security
remained largely outside the global Investment Market has led to integration with
integration process until 1991. A number of the developed Security Investment Market s in
developing countries in association with the the world. People buy goods and services in a
International Finance Corporation and the place called market. The Indian Security
World Bank took steps to establish and Investment Market is considered to be one of
revitalize their Security Investment Market s the earliest in Asia, which is in operation since
as an effective way of mobilizing and 1875. Historically, India had a bank-
allocation of funds. In line with the global dominated inancial system, which was
trend, reform of the Indian Security supplemented by the development inancial
Investment Market also started with the institutions (DFIs) to provide long- term
establishment of Securities and Exchange project inance. However, the inancial system
Board of India (SEBI), although it became has undergone a marked change during recent
more effective after the Security Investment years. With the conversion of DFIs into banks,
Market scam in 1991. An important feature of a gap has been created for long-term inance.
the development of stock market in India in Commercial banks, given the short-term
the last 15 years has been the growing nature of their liabilities, may not be able to ill
participation of Public and private investors, the gap in long-term inance. In view of this,
both foreign Public and private investors and India's corporate sector requires long-term
the Indian mutual funds combined together, inance to supplement their resources. In this
An Appraisal of Security Investments
context, development of the corporate bond more effective after the Security Investment
market would play a strategic role in the near Market scam in 1991. With the establishment of
future. The corporate debt market in SEBI and technological advancement Indian
India has been in existence since Security Investment Market has now reached
independence. Public limited companies the global standard. The major indicators of
have been raising capital by issuing debt
Security Investment Market development show
securities. However, it remained largely
that signi icant development has taken in the
outside the global integration process until
1991. The Security Investment Market is the Indian Security Investment Market during the
place where the transactions relating to the post-reform period. Recent global
buying and selling of securities take place. developments have considerably undermined
These securities may be shares, stocks, the prospects of a self-sustaining recovery in
debentures, and the list goes on. Investment India, as in other parts of the world. The
for starters is some of money that we can put growing linkages and integration of the Indian
in a bank in the farm of deposit or spend the economy and its inancial system with the
money in buying securities issued by a world have meant that India has become more
company or any other inancial institution. A vulnerable to external developments. The
large number of securities are bought and
sovereign debt crisis and prolonged slowdown
sold every minute in the online Security
in the Euro area and the US have begun to have
Investment Market. As such a lot of parties
work together in a Security Investment their impact on India's growth prospects, the
Market every day. A stock exchange is the only resilience of the Indian economy
place where securities are bought and sold. notwithstanding. The Indian securities markets
But that does not mean that securities can also have witnessed far- reaching reforms in the
be traded with the help of banks. post-liberalization era in terms of market
design, technological developments, settlement
Banks provide these facilities, which enable a
practices and introduction of new instruments.
person to buy and sell securities without
Security Investments are the purchased in
stepping in the Security Investment Market. A
order to be held for investment. This is in
number of developing countries in
contrast to securities that are purchased by a
association with the International Finance
broker-dealer or other intermediary for resale.
Corporation and the World Bank took steps to
Banks often purchase marketable securities to
establish and revitalize their Security
hold in their portfolios. Investment securities
Investment Market s as an effective way of
held by banks are usually one of two main
mobilizing and allocation of funds. In line with
sources of revenue, along with loans.
the global trend, reform of the Indian Security
Investment securities provide banks with a
Investment Market also started with the
source of liquidity along with the pro its from
establishment of Securities and Exchange
realized capital gains when they are sold.
Board of India (SEBI), although it became

An investment instrument, other than an among whom foreign investors are of primary
insurance policy or ixed annuity, issued by a importance. One eminent concern in the
corporation, government , or other matter is whether these foreign investors (PP
organization which offers evidence of debt or I nve s to rs ) d i re c t t h e I n d i a n S e c u ri t y
equity. However, when the people need to Investment Market. With rapid changes in the
trade in stocks, shares, debentures etc. there is economy because of liberal economic policies
a speci ic place where one needs to go. One and fast pace changes due to globalization,
cannot deal with these items in a normal Indian market has become a focus point for
market place. Thus a place or a platform foreign investors. Organizations tend to target
where the trading of these shares and stocks for large volume of trade in this era of
takes place is known as the Security globalization. Trade lows are indeed one of the
Investment Market. The price of these shares most visible aspects of globalization.
and stocks is not considered by monopoly; International investment is a powerful source
rather it is the demand and supply forces of in propelling the world toward closure
the market that determines the prices of these economic integration.PP Investors refers to the
shares and stocks. In earlier times, the trading, investment made by resident of one country in
that is, the buying and selling of shares and the inancial capital and asset of another
stocks takes place at a particular place known country It facilitates and persuades large
as stock exchange. Thus, the person needs to productivity and help in shaping up balance of
go at that particular platform if he or she payments. PP Investors lows in India have
needs to trade in the shares. However with the continuously grown in importance. PP
advancement of technology, this process has Investors, because of its short-term nature, can
almost become redundant. Now, the trading of have bidirectional causation with the returns
shares and stock can take place electronically. of other domestic inancial markets such as
T h e re i s a t re m e n d o u s re d u c t i o n o f money markets, Security Investment Market s,
paperwork as everything has gone online. Due and foreign exchange markets.
to globalization, Security Investment Market
has strived to enhance its securities markets Hence, understanding the determinants of PP
performance to increase its investors' Investors is very important for any emerging
con idence and hence widen their pools of economy as PP Investors exerts a larger impact
investment portfolios. Since Indian Security on the domestic inancial markets in the short
Investment Market is vast and attract run and a real impact in the long run. Recent
investors as a hotspot of investment. years have seen considerable attention
devoted to the analysis of factors in luencing
The Indian market is steadily growing and had investment decisions in different countries.
allured domestic investors' community and Investor con idence, company inancial health
foreign investors group in the past .the major and statements, political factors, and the
part of investment in Indian market is current state of the economy all affect the
attributed to Public and private investors Security Investment Market.

Investors look for companies that have the three broad strands: a) those dealing with
potential to earn consistent pro its, functioning of securities markets and
maintain them, and grow. Companies that inancial institutions operating in these
hold lots of cash have sound management, markets, b) those pertaining to the
and sizeable pro its are usually the most investment decision making process of
attractive to investors. The more pro its a individuals, and c) empirical work on Indian
company makes, the more investors that will Security markets. One of the early works on
want a piece if it. Buying stocks and receiving functioning of Security markets and inancial
regular dividends satis ies this. Also, institutions was by Simha, Hemalata and
companies that do not violate regulations Balakrishnan (1979).
are also attractive. Companies that are in hot
water with agencies are shied away by Bhole (1980) wrote a comprehensive book on
potential and current investors. Also, the growth and changes in the structure of
companies with lots of debt and lower Indian capital markets and inancial
pro its are not attractive to investors. In the institutions. Several books have been written
long run, it's all about pro its. In the short on security analysis and investment in Indian
term, it's all about speculation and where Security markets: Bhalla (1981); Jain (1981),
the "experts" see a company going according Sahni (1981), These books are primarily
to their industry. written for initiating lay investors to
techniques for security analysis and
Objectives of Study management of investment portfolios. Barua
To achieve the targets the following research & Varma (19981) and Ramachandran (1981)
method to be followed:- have critically examined various facets of the
1. To ind the most valuable & returnable great securities scam of 1981. Raghunathan
security orders in order to get lesser risk (1981), Varma (1981), comment upon the
factor. Indian capital market in general and trading
2. To compare the securities in terms of systems in the Security exchanges in
risk, return, marketability, convenience & particular and suggest that the systems
tax shelter. therein are rather antiquated and inef icient,
3. To the India individual, the research and suffer from major weaknesses and
will avail the perfect investment scheme. malpractices. According to most of these
4. To come on the knowledge of the studies, signi icant reforms are required if the
spectrum of investment avenues available to Security exchanges are to be geared up to the
investors in India. envisaged growth in the Indian capital market.
5. Detailed tabular classi ication of They conclude that the risk perception of
tabular classi ication of Investment material individuals is signi icantly in luenced by the
as to assess safety levels, Rate of risk, skewness of the return distribution. This
earning levels, growth rate & other future implies that while taking investment
bene its. decisions, investors are concerned about the
6. Analysis of above tables to obtain possibility of maximum losses in addition to
objectives. the variability of returns. Thus the mean
variance framework does not fully explain the
Review of Literature investment decision making process of
The work in this area can be classi ied into individuals.
Gupta (1982) argues that designing a gold provide complete hedge against in lation.
portfolio for a client is much more than merely The issue of in lation hedge has also been
picking up securities for investment. The researched in the context of Security.
portfolio manager needs to understand the
psyche of his client while designing his Varma (1984) compares the BSE National
portfolio. According to Gupta, investors in Index (Natex) which comprises 100 scrips
India regard equity debentures and company with the Sensitive Index (Sensex) comprising
deposits as being in more or less the same risk 30 scrips and concludes that the Natex is a
category, and consider mutual funds, sluggish index which responds too slowly to
including all equity funds, almost as safe as market conditions. Changes which are
bank deposits. Chandra (1982) discusses re lected in the Sensex on any day are
the mistakes made by individual investors in completely re lected in the Natex only by the
designing their portfolios and suggests next day. He inds that Sensex is more volatile
suitable remedial measures. In his recent than Natex. He concludes for this and other
book, L.C. Gupta (1982) concludes that, a) reasons that those who follow the Natex
Indian Security market is highly speculative; because of its greater comprehensiveness and
b) Indian investors are dissatis ied with the theoretical appeal may be mistaken. The
service provided to them by the brokers; c) Sensex needs to be taken more seriously as a
margins levied by the Security exchanges are sound market index. The observed de iciencies
inadequate and d) liquidity in a large number of the Natex raise several disturbing questions
of Security s in the Indian markets is very low. for inance theorists and researchers. Is the
While evidently a painstaking work, the market for the less well traded securities in the
conclusions except `c' above seem to be built market inef icient? Do the scrips constituting
on wrong or questionable arguments. the Sensex lead the other scrips? If so, can this
relationship be used to make extra normal
Barua and Raghunathan (1983) examined returns? Does the Bombay market lead other
empirically the hedge provided by Security exchanges which are also represented in the
and bullion against in lation. These studies Natex? These issues call for further research,
found that while gold provided complete especially since such questions have been
hedge against in lation, silver and Security raised by many, including the SEBI of late. On
were only partial hedges against in lation. whether SEBI has been successful in improving
Rao and Bhole (1983) arrive at a similar the functioning of Indian Security markets, the
conclusion about Security s. However, as conclusions are mixed.
these works pertain to the period prior to the
booming 1980's and 1990's, the conclusion Francis (1984), Barua (1984)). Dhillon
that Security is not an in lation hedge is of (1984), in his doctoral dissertation studies the
doubtful validity today. A similar study regulatory policies of Bombay Security
covering the more recent years would be very Exchange (BSE) over a four year period (July
useful as one may reach a very different 1986 - June 1990). His indings show that
conclusion. With a booming Security market regulatory authorities decide changes in their
since the second half of eighties and the margin policy on the basis of market activity.
stagnation in the international price of gold,
such a study may ind that Security s and not

He inds that the margins are prompted by Raghunathan and Varma (1985) point out that
changes in settlement returns, price any comparison of the Indian Security market
volatility, trading volume and open positions. with that elsewhere must be carried out on a
Granger causality results show that there common currency base. They ind that in
is limited causality in the reverse direction: dollar terms, the SENSEX return over the
margin changes do not affect returns, and 1960-92 period is only about 0.5%, while
have only a limited impact on price during the same period the returns in the U.S.
volatility, trading volume and open (based on the S & P Index) and the Japanese
positions. Event study methodology applied (based on the NIKEI index) are 6.1% and 11.4%
to daily margins show similar results, except per year respectively. Over the twelve year
that daily margin on sellers do not appear to period 1980-92, the dollar returns for SENSEX,
be affected by market variables. Further, S & P and NIKEI indices turn out to be 6.5%,
there is also evidence of under margining 10.65% and 13.6% respectively. For a shorter
leading to excessively levered positions, span of seven years, namely 1985-92, the
thereby increasing the insolvency risk. The returns for the three indices turn out to be quite
above results reveal that regulations through comparable at 15%, 13% and 14%
these instrument have had only a marginal respectively. Very little theoretical work has
impact on the dual objectives of controlling been done in the ield of equity valuation in the
market activity and insolvency risk. Indian context. Even when some work has
been done, it is a mere extension of the well
Pandya (1985) observes that as a regulatory known works of Modigliani and Miller. For
and development body, SEBI's efforts in the example, Raghunathan and Varma (1985)
direction of investor protection are varied provide a reasonably comprehensive valuation
and unlimited. The measures brought in model which captures most of the complexities
by SEBI broadly cover measures for and subtleties of real world. The model is
allocative ef iciency in the primary market capable of supporting both the Gordon and MM
with fair degree of transparency, reforms in type assumptions about the investment policy
the secondary market for visible and mutual of the irm. It allows for personal taxes with
f u n d s , re g u l a t i o n o f va r i o u s m a rke t differential tax rates for dividends, interest,
intermediaries and above all for the and capital gains. The model also takes into
protection of the investing public. account lotation costs on debt and equity.
Venkateshwar (1985) explores the Further, unlike other models which de ine
relationships of the Indian Security capital gains as increase in the book value
markets as re lected by the Bombay which in turn equals retained earnings, this
Security Exchange Index, vis-a-vis other model interprets capital gains as increase in
prominent international Security the market value of the share. Finally, the
markets. International Security indices are model is modi ied to take into account the fact
used over the period 1983-87. He concludes that in lation erodes the real value of the irm's
that there is practically no meaningful assets, particularly the net monetary working
relationship between the BSE index and capital.
other international Security market indices,
though the British and South Korean indices
are inversely related to BSE.

Some of the other theoretical works on relevant from the standpoint of market
valuation pertain to the Indian debentures ef iciency also. Applying variance ratio test on
and bonds with unspeci ied conversion the monthly all-India share price index data
terms. These are discussed under the spanning the period July 1987 to October
section on the valuation of bonds and 1996, Basu and Morey found that the
debentures. There are several empirical aggregate equity prices show signs of being
works pertaining to the pricing of equities. ef icient since the mid-2012. Kawakatsu and
Pandey (1986) examines the impact of Morey, on the other hand, found little evidence
leverage on equity prices and concludes that that liberalization has changed the behaviour
M o d i g l i a n i - M i l l e r hy p o t h e s i s i s n o t of Indian Security indices. To the best of our
supported. However, the risk proxy used in knowledge, the most recent work on
the paper, namely, coef icient of variation of ef iciency/predictability has been done by
net operating income, is highly questionable. Poshakwale in 2000, by applying the BDS test
Zahir and Yakesh (1986) ind the dividend (Brock et al . (2012)) for nonlinearity.
per share to be the most important variable Poshakwale (2012) has examined the random
affecting the share price, followed by walk hypothesis by testing nonlinear
dividend yield, book value per share, dependence using both individual Security
dividend coverage and the return on prices and equally weighted portfolio of 100
investment, in that order. Balakrishnan Security s for the period January 1, 1990 to
(1986) also inds that the current dividend November 30, 1998. The major inding of this
and book value per share are more important study is that daily returns from the Indian
determinants of market price as compared to Security markets do not follow random walk
earnings per share and dividend coverage. model.
Bhaumik (2012), however, found evidence of Origin of the Indian Security Investment
market ef iciency, although in a very limited Market
framework of analysis. It may be noted that all
t h e s e s t u d i e s h ave m a i n ly u s e d t h e The Indian Security Investment Market is not a
traditional tests in their ef iciency studies new concept. It has a history of about 299
and to that extent the scopes of these indings years old. It was in early 18th Century, the
are rather limited. Two other studies on main PP Investors that is dealing in the trading
market ef iciency in the Indian Security of shares and stocks is the East India Company.
market are due to Basu and Morey (2012) and Later by around 1830 s the main dealing in
Kawakatsu and Morey (2012). Although the shares and stocks (mainly in bank and
their common objective was to ind the effect cotton) was initiated in Bombay. However, the
of economic liberalization on the ef iciency of items in which the trading took place
Indian Security market, their analyses are increased tremendously by the end of 1839.

There after the concept of broker business sectors. Both sectors undertake projects that
was started which show momentum in the require making some initial investments and
mid 18th century. This concept has attracted are expected to provide bene its over a
nm\ember of people to indulge in the trading number of years. Both sectors must choose
of items. By 1860, the number of brokers who between making these investments and
are dealing in the trading of items goes up to returning the cash to be invested to their
60 in number. Further, the number of brokers bene iciaries— the shareholders in the case of
increased from 60 to 250 in around 1862- private-sector irms, and the citizenry in the
1863. However, around 1980-61 there is no case of governments— who can then invest the
supply of cotton from America as there was cash directly in the capital markets or spend it
civil war that took place in America. Due to on current consumption. As all parties
this, there is a concept of Share Mania that involved—private-sector irms, the
took place in India. This is the era of 1980 in government , shareholders, and the
which the Indian market had the initial lavor citizenry—have access to the same capital
of the trading in items and the concept of markets, the marginal opportunities forgone
Security Investment Market. Thereafter, it by making these investments— the
has shown signi icant changes both in the opportunity cost of these
pre-independence era and post investments—should be the same for both
independence era. The Indian stock market sectors. In neither case can the bene iciaries'
has come of age and has substantially aligned wishes be ignored with impunity. Private-
itself with the international order. Over the sector managers are monitored by boards of
last ifteen years the following developments directors, who are elected by shareholders.
have made the Indian stock markets almost Directors will replace managers if these prove
on par with the global markets: to be incompetent, or run the risk of them
 Screen based trading systems replaced the being replaced. Similarly, citizens in a
conventional open outcry system of trading democracy are provided, through elections,
and everyone acclaims the contribution of with the regular opportunity to replace
the screen based trading in developing the incompetent governments. They also elect
culture of equity investing. representatives whose role is to monitor the
 The replacement of the fourteen-day government. At irst blush, then, one might
account period settlement system give way to expect the investment criteria that are
rolling settlements on T+2 basis has brought appropriate for private-sector irms to be fairly
down the settlement risk substantially. similar to those for government. That this need
 Dematerialization of securities not lead to the same investment appraisal
 Demutualization of exchanges procedures is a consequence of the differing
 Derivatives trading nature of the agency relationships in the public
and private sectors, the differing intent of the
There are some obvious parallels between contemplated investments, and the presence
the problems faced by the public and private of distortions such as taxes.

Market among all the countries in the world. of the stocks. This paper sets out with the
Along with these changes the market has also objective of examining whether the Public and
witnessed a growing trend of 'PP Investors private investors, with their war chests of
that may be considered as a consequence of money, set the direction to the market. The next
globalization. More precisely the growing section brie ly outlines the growth of Public
might of the Public and private investors and private investors ' presence in Indian stock
entities whose primary purpose is to invest market followed by an explanation of the data
their own assets or those entrusted to them by and methodology employed by the study and
others and the most common among them are inally we present the results and discussions.
the mutual funds and portfolio investors.
Today, giant PP Investors control huge sums of Public and private investors on Indian
money which they move continuously. In Markets:
European and Japanese markets, PP Investors
dominate virtually all trading. In the US, retail A Grave Balance of Payments situation forced
investors still remain active participants. An the policymakers to take a relook at allowing
important feature of the development of stock foreign capital Into the country and the year of
market in India in the last 15 years has been 1991 marked the announcement of some iscal
the growing participation of Public and disciplinary measures along with reforms on
private investors , both foreign Public and the external sector made, it possible for the
private investors and the Indian mutual funds foreign capital to reach the shores of the
(since the pension funds are still restricted to country. As on 31st March 2005 there were 685
fully participate in the stock market otherwise (ISMR 2004-05 NSE, Mumbai) registered
pension funds are big investors all world foreign Public and private investors in the
over). With the accelerating trends of reforms Indian stock market. As on that date the net
Indian stock market will witness more and cumulative investments made by PP Investors
more of PP Investors and the increasing size of are around USD 35.9 billion representing
money under the control, this set of investors around 6.55% of India's market capitalization.
will play a major role in Indian equity markets. Ever since they were permitted to invest in
The importance of Public and private India the investments made by them showed a
investors particularly foreign investors is gradual increase except in the 1998-99. The net
very much evident as one of the routine in lows averaged around 1.1 b.n. per year and
reasons offered by market Pundits large net out lows are rare barring the year of
whenever the market rises it is attributed 1998-99 where most South Asian countries
to foreign investors' money, no wonder we see were out of favour for a while. Foreign portfolio
headlines like "PP Investors Fuel Rally" etc., in investment carries a sense of notoriety of its
the business press. This is not unusual with own because at the irst sign of trouble this
India alone as most developed economies lows in reverse direction. The notoriety
of today might have seen a similar trend in emanates from the very nature of PP
the past. The increasing role of Public and investment - portfolio managers tend to
p r iva te i nve s to r s h a s b ro u gh t b o t h restructure and rebalance their portfolios
quantitative and qualitative developments in dynamically across the countries, their
the stock market viz., expansion of securities primary concern being their portfolio. Owing
business, increased depth and breadth of the to their magnitude of lows, the direction of PP
market, and above all their dominant investment lows tends to make or break the
investment philosophy of emphasizing the fortunes of a market. PP Investments lows to
fundamentals has rendered ef icient pricing India are less.
Table 1
Year Net Investments by PP

Investors (Rs)
2000-01 4.27
2001-02 5444.60
2002-03 4776.60
2003-04 6720.90
2004-05 7386.20
2005-06 5908.45-
2006-07 729.11
2007-08 9765.13
2008-09 9682.52
2009-10 8272.90
2010-11 2668.90
2011-12 44000.03
2012-13 41416.45
March
Source: Chandra Prasanna (2013)
Since it is not statutorily binding on PP Investors to make public, the companies in which they are
investing in, there is no publicly available information on this aspect. However, the overall
investment that can be made by all PP Investors in any company's equity is monitored by Reserve
Bank of India; it gives a caution notice, when the overall PP investment level reaches 22 percent in
a company. Subsequently, all purchases have to be done by prior approval of Reserve Bank of
India. From such monitoring reports it can be gauged that the PP Investors are market or not.
Here, one has to note that most stocks that igure in Public and private investors ' portfolios are
more or less those securities that comprise the nifty or Sensex indices hence, co-movements
between index and the PP investments is likely. But, when we use Advances and Declines ratio
(ADR hereafter) it captures the direction of entire market in unambiguous terms. Generally
advances to declines ratio indicate the breadth of the market. Hence, we use ADR instead of Nifty
or Sensex returns. In reality, it is not possible to isolate the actions of mutual funds and PP
Investors on the stock market, since both the category of investors are acting simultaneously
hence, the PP Investors activity is captured by taking the ratio of combined purchases of mutual
funds and Fl Is to combined sales of mutual funds and PP Investors so if the ratio is >1 means PP
Investors have pumped in money i.e., the market witnessed a net in low of money while a ratio of
<1 indicates there is an out low of money from the market.
Results and Discussions:
My irst question is whether PP Investors activity has an in luence on the market or not and this is
examined by running a simple regression with the advances to decline ratio as the dependent
variable and the public and private purchases to sales as the independent variable. But, before we
attempt to do the regression we have put to investigate whether the data is stationary or not and
for this we used Augmented Dickey Fuller tests Hamilton, J. (1994). The unit root test results on
the individual data series is given below in Table II.
Table II
Variable Test Statistic P Value
ADR 14.3039 0.0000
PP INVESTORS 14.2312 0.0000
MF 9.9388 0.0000
Public and Private 12.8703 0.0000

Investors
Source: McKinnon critical values at 1% level of signi icance is 3.4385
The inferences about the stationary of the data series remain unchanged even when we used the
Phillips- Perron tests. Since the data series is found to be stationary, the results from the standard
OLS regression cannot be refuted. Now, we present the results of the linear regression in the
following Table III

Table III
Variable Coef icient Std. error t-statistic P value
Public and 0.925420 0.03056 30.28240 0.0000

Private Investors
We have also conducted another regression with Private and public investors and MF as the
independent variables separately and the ADR as the dependent variable and the results are
similar to the above regression these are presented below:
Table IV
Variable Coef icient Std. error t-statistic P value
PP INVESTORS 0.252056 0.031955 7.88774 0.0000
MF 0.753414 0.04279 17.60712 0.0000
So, it is clear that the PP Investors activity has an in luence on the stock market and both
mutual funds as well as PP Investors actions have signi icant impact on the market's
direction. Does this imply that PP Investors activity because the stock market to rise/fall?
This question is addressed by using Granger (1969) causality test assuming a one period
lag we obtained the following results:

Table V
Null hypothesis F-Statistic P-value
PP INVESTORS 3.15491 0.07595

does not Granger Cause ADR
ADR does not Granger 0.65358 0.41899

Cause PP INVESTORS
The F statistics indicate that the null hypothesis ADR does not Granger Because PP Investors
cannot be rejected and the null hypothesis PP does not Granger Cause ADR can be rejected. In
other words there is statistical evidence that the forecasts about market direction can be
improved by using the institutional activity as an independent variable. Then we examined
whether the institutional activity is one sided meaning. Whether the PP Investors actions and
mutual fund actions are correlated. Since both these type of investors are driven by teams of
trained analysts; we can premise that their actions may be positively correlated. The correlation
results indicate that there is a weak negative correlation over this period and the correlation
coef icient is -0.06439. To further augment my analysis we conducted a Granger Causality test as
to whether the direction of public and private investments can be predicted using previous day's
information on mutual fund activity. The causality test results are shown below:
Table VIII
Null hypothesis F-Statistic P-value
MF does not 4.36575 0.03687

Granger Cause PP Investors
PP Investors does not 0.06531 0.79834

Granger Cause MF

From the above results we can infer that the there were limits to foreign ownership of
null hypothesis MF does not Granger cause PP shares in irms. If foreign investors reach the
Investors can be rejected but the hypothesis PP ownership limits, shares in those irms are
Investors does not Granger cause MF cannot restricted to trading by Public and private
be rejected. In other words, the forecasts of PP investors.
Investors activity using mutual fund activity
can be improved where as the reverse is not Conclusion:
possible. This is a little bit surprising as well as Investors in developed markets are
interesting to note that the Indian mutual increasingly becoming convinced of the merits
funds are leading the pack and are giving of investing in emerging markets. Indeed, a
direction to the market and even PP Investors number of major investment banks in India
are following their direction, probably, have recommended that 5—10% of investors'
because of the larger size of the funds under portfolio be allocated to emerging markets. It
the management of the mutual funds and is very easy to get cheated in the securities
hence the statistics are showing accordingly. market. Investors in other countries don't
The growth of Public and private investors in think any differently. The survey found that
the market is having its own advantages as well investors around the globe have higher
as its own share of problems on the brighter expectations from stocks in 2013. In emerging
side almost always purchase stocks on the markets, 66% of the respondents expect their
basis of fundamentals. And this means that it is local stock market to improve (versus 58% in
essential to have information to evaluate, so developed markets).
research becomes important and this leads to
increasing demands on companies to become However, despite this optimism, 57% of those
more transparent and more disclosures. This surveyed plan to follow a more conservative
will lead to reduction in information investment strategy this year. Surprisingly,
asymmetries that plagued the Indian markets younger investors (aged 25 to 34) will lead the
for quite a while. Also, the increasing presence charge toward "safer" havens. "Despite
of this class of investors leads to reform of investors' overall positive outlook, it appears
securities trading and transaction systems, that avoiding loss, rather than achieving
nurturing of securities brokers, and liquid higher returns, is still a top priority," said Greg
markets. On the lip side the increase of foreign Johnson, President and Chief Executive Of icer,
investors in particular will bring a very Franklin Templeton Investments. "Clearly the
welcome in low of foreign capital, but there are market volatility over the past ive years has
always some dangers if certain limits are reinforced a preference among investors for
exceeded. Firstly, the foreign capital is free and capital retention over investment gains. As
unpredictable and is always on the lookout of seen in recent years, this risk avoidance has led
pro its PP Investors frequently move many investors to remain on the sidelines,
investments, and those swings can be expected missing opportunities. Working with a
to bring severe price luctuations resulting in inancial advisor can be the best resource for
i n c re a s i n g vo l a t i l i t y. A l s o , i n c re a s e d evaluating all sides of the risk equation," he
investment from overseas may shift control of added.
domestic irms to foreign hands. But, in India

Indian investors have the highest return about the ways of this market. There are many
expectations from stocks in the world: 15% in factors in luencing price of a stock. We need to
2013 and 22% over the next 10 years. ind out in which instruments to invest in, as
However, high in lation is clearly the top factor there are a lot of investment opportunities in
making investors reluctant to invest in the the market. Also we need to be careful about
stock markets in India followed by the state of the rise and fall of Security Investment Market
the global economy. Amongst the respondents prices if we are investing in the Security
(middle income Indian investors) exposure to Investment Market. The results showed that,
mutual funds is a quarter of their total while giving much higher returns than the
investments and they expect it to increase by trading method when the market is relatively
one-third over the next ive years. Indian stable, the rule of using 'overnight gains as a
investors overwhelmingly expect local equity predictor of day gains' does not hold in a highly
and ixed income markets to outperform their volatile market. Thus out-of-sample tests of
global counterparts. Purchasing a new home market anomalies are essential before
is the top investment goal for investors in reaching conclusions about the ef iciency of
India for 2013. While retirement is one of the any inancial market. Some directions for
top three goals, compared to their global future research emerging from the study
counterparts, Indian investors' focus on include investigating the phenomenon in the
retirement as a goal is the lowest amongst all developed markets, which are expected to be
the countries surveyed. Interestingly, while more ef icient; examining the behaviour of
97% of Indian investors are con ident about investors and fund managers to ind out if they
achieving their inancial goals, a majority of take the overnight shift in the stock prices into
them think they can do it without equity consideration in devising trading strategies for
exposure. Another interesting inding is that the following day; and developing an elaborate
respondents view professional inancial and more accurate model factoring in details
advice as an important or very important like issue of ESOPs and issue of preferential
factor for making investments - more than shares. There are money brokers out there in
two-thirds (69%) of investors are willing to the market who helps out people in the
pay fees to their distributors/ inancial Security Investment Market by giving them
advisors for such advice. advise when to invest and when not to. A real
broker must be registered by the SEBI. A
Harshendu Bindal, President, Franklin brokers works for a fee and is bound by rules
Templeton India said, "The survey clearly imposed by the SEBI. The securities markets in
shows the strong optimism in India about the India have witnessed several policy initiatives,
growth prospects, albeit with near-term which has re ined the market micro-structure,
concerns. Also, it is heartening to note that modernized operations and broadened
contrary to popular belief, there is willingness investment choices for the investors. In India
to pay advisory fees for professional advice, however, corporate bond market is quite small
especially amongst middle income investors. compared to the size of the equity market. One
Given the ongoing changes in the distribution of the main reasons for this is that a large part
landscape, this willingness augurs well for of corporate debt, being loan from inancial
inancial planners and advisors". That is why intermediaries, is not securitized. One of the
we need proper education and knowledge most important functions of the capital market
is to channelize resources for productive use. dominated by Public and private investors. The
It can perform this function effectively only if it regression results show that the combined
is able to build up investors' con idence by might of the PP Investors and mutual funds are
ensuring that the expected return from an a potent force, and they infact direction can
investment opportunity is commensurate forecast market direction using the direction of
with the risk associated with it, both in the the low of funds from PP Investors and mutual
primary as well as the secondary markets. The funds, the Granger causality test has showed
primary market is the market for fresh issue of that the mutual funds in fact lead the market
securities directly from the companies to the rise or fall and PP Investors follow suit. This
may actually raise questions on the market
investors. The secondary market is where
ef iciency but on the contrary, markets become
investors trade in the securities after the
more ef icient with the growing presence of
initial issue in the primary market. A well-
Public and private investors who
functioning secondary market is essential to predominantly go by fundamentals. Noise
attract household savings in the primary trading on the part of Public and private
market. Amongst the respondents (middle investors will be less in Indian context since all
income Indian investors) exposure to mutual their trades are delivery based only. He inds
funds is a quarter of their total investments that the margins are prompted by changes in
and they expect it to increase by one-third settlement returns, price volatility, trading
over the next ive years. Indian investors volume and open positions. Granger
overwhelmingly expect local equity and ixed causality results show that there is limited
income markets to outperform their global causality in the reverse direction: margin
counterparts. changes do not affect returns, and have only a
limited impact on price volatility, trading
According to most of this study, signi icant
volume and open positions. Event study
reforms are required if the Security exchanges
methodology applied to daily margins show
are to be geared up to the envisaged growth in
similar results, except that daily margin on
the Indian capital market. It is concluded that
sellers do not appear to be affected by market
the risk perception of individuals are
variables. Further, there is also evidence of
signi icantly in luenced by the skewness of
under margining leading to excessively
the return distribution. This implies that
levered positions, thereby increasing the
while taking investment decisions, investors
insolvency risk. The above results reveal that
are concerned about the possibility of
regulations through these instrument have
maximum losses in addition to the variability
had only a marginal impact on the dual
of returns. Thus the mean variance
objectives of controlling market activity and
framework does not fully explain the
insolvency risk. Pandya (1992) observes that as
investment decision making process of
a regulatory and development body, SEBI's
individuals. The portfolio manager needs to
efforts in the direction of investor protection
understand the psyche of his client while
are varied and unlimited. The measures
designing his portfolio. The Indian stock
brought in by SEBI broadly cover measures
markets have really come of age there were so
for allocative ef iciency in the primary market
many developments in the last 15 years that
with fair degree of transparency, reforms in the
make the markets on par with the developed
secondary market for visible and mutual
markets. The important feature of developed
funds, regulation of various market
markets is the growing clout of Public and
intermediaries and above all for the protection
private investors and this paper sets out to
of the investing public.
ind whether the markets have also being
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Banking Industry in India – Dr. N. Santosh Ranganath*
Towards a Competitive Landscape
(*Faculty, Dept. of Commerce and Management Studies

Dr. B.R. Ambedkar University, , Andhra Pradesh – 532410)
Abstract: Internet banking, mobile banking and social

The prognosis for Indian banks looks banking have made "anytime anywhere
positive with the domestic credit as a banking" the norm now. In 2011/12, non-cash
percentage of the GDP having grown payments comprised 91 per cent of total
substantially over the last decade. This was transactions in terms of value and 48 per cent
primarily because the conventional policies in terms of volume. Within noncash payments,
of the RBI have worked well to limit India's too, the share of payments through cheques
exposure to the sub-prime crisis of 2008, has come down from 85 per cent to nine per
which stemmed when regulators eased their cent in value, and 83 per cent to 52 per cent in
grip on inancial corporations, thereby volume between 2005/06 and 2011/12. Non-
leading to the high risk leveraging of assets. cash payments comprised 91 per cent of value
Though the government is working hard to and 48 per cent of volume of total transactions.
control in lation rates, the industry expects
full implementation of Basel III norms by Banks have taken other measures to improve
March 2018. This will require a considerable their functioning, too. As a result, there were
credit raise, especially for public sector 20 Indian banks in the UK-based Brand
banks. This article analyses the current state Finance's annual international ranking of top
of the banking industry, and its future growth 500 in 2010, as compared to only six in 2007,
potential. The article also highlights certain according to a report in a leading inancial
key challenges, such as controlling non daily. The growth is not restricted to the
performing assets and inancial inclusion. metropolitan or urban areas. Financial
inclusion has been at the forefront of
Keywords: Basel III, Liberalization, regulators and policy makers in India, a
Financial inclusion, Economy, GDP growth. country where approximately half of the
population still does not have access to
Introduction banking services. There have been occasions
The Indian banking sector has seen when banks have acted beyond their role of
unprecedented growth along with inance providers. For example, a inancial
remarkable improvement in its quality of daily reported that Aryavart Gramin Bank, a
assets and ef iciency since economic regional rural bank sponsored by Bank of
liberalization began in the early 1990s. From India, tied up with Tata BP Solar to inance
providing plain vanilla banking services, "Solar Home Lighting System" for village
banks have gradually transformed homes in Uttar Pradesh. It extended inance of
themselves into universal banks. ATMs, around Rs 10,000 with Rs 3,000 as margin
money to be contributed by the bene iciary.
Banking Industry in India
The equated monthly installment towards the products accordingly. Although there has been
repayment of the loan amount was less than little progress on the draft norms for issuing
the amount the villagers had to spend on new banking licenses, the entry of new banks
kerosene requirements per month. The could have a signi icant impact on the Indian
bank's initiative resulted in 20,000 houses banking system. Given the huge unbanked
getting solar power. It also meant an annual population, there is surely a scope for more
saving of about 192 tanker loads of kerosene. banks.
India's banking system was probably one of
the few large banking systems which  Foreign banks:
remained unscathed by the 2008 global RBI has been keen on allowing foreign banks a
inancial crisis. However, there is a lot more to larger role in the Indian banking system since
be done to make it a truly world class sector. February 2005, when it irst issued the road
map for presence of foreign banks in India. In
Key developments in the Banking Industry May 2012, the government also facilitated the
process by proposing to exempt foreign banks
 Basel III from the 30 per cent tax on capital gains and
India igures among the very few countries stamp duty while converting branches into a
which have issued inal guidelines on Basel III new entity. RBI has also mandated foreign
implementation so far. The Reserve Bank of banks with 20 and more branches to achieve
India has given ive years for the gradual priority sector targets and sub-targets at par
achievement of Basel III global banking with their domestic counterparts.
standard. But it seems a tall order for many
banks. The challenges of implementing Basel  Developing corporate bond markets:
III are further accentuated by the fact that the Developing corporate bond markets is an
law mandates the Central government to hold important link in a well developed inancial
a majority share in public sector banks market. Although the government has taken
(PSBs), which control more than 70 per cent some steps in this direction, a lot more needs to
of the banking business in India. Further, the be done.
high iscal de icit is likely to limit the
government's ability to infuse capital in the  Unique Identi ication (UID) project:
PSBs to meet Basel III guidelines, which will Among the many initiatives, the government's
require approximately Rs 4.05 trillion to Rs UID project is likely to have signi icant impact.
4.25 trillion over the next ive to six years. Given the numbers out of the reach of
(One trillion equals to Rs 100,000 crore.) The organised banking, it can prove to be
high capital requirement will also add transformational by giving banks an access to a
pressure on return of equity of banks. large untapped customer base. The whole
range of government payments - under
 New banks: subsidies and bene its of various welfare
Banks of the future will need to understand schemes - will be routed through banks.
the tech-savvy gen-y customers and design

 Social media:
This adds another dimension for banks to manage their relationship with customers. It already
had over 45 million users in India in 2011, which is expected to grow to over 88 million by the next
year with over 75 per cent under the age of 35, according to media reports. Although banks in
India have been a little late in using social media, they have been making fast progress. With
increasing volume and complexity of the banking business, it will be imperative for the regulator
to move gradually towards more offsite monitoring than onsite. Technology will play a much
larger role in the overall supervision of the banking system. There are likely to be
transformational changes in the entire regulatory system for inancial services.

The Indian banking landscape is expected to among 207 countries given in the World
evolve to have regional as well as national Development Report in terms of the Gross
players. Except for a few large banks having Domestic Product (GDP). It also envisages
pan-India presence, many of the mid and moving the country from a low-income nation
small banks will specialise in certain to an upper middle-income country. To
functions/regions in diverse markets. Rather achieve this objective, the India Vision aims to
than every bank trying to carry out all the have an annual growth in the GDP of 8.5 per
banking functions throughout the country, cent to 9 per cent over the next 20 years.
banks are likely to identify their core Economic development of this magnitude
competencies and build on those. A bank that would see quadrupling of real per capita
avoids "one-size- its-all products", acts as a income. When compared with the average
knowledge banker, provides all inancial growth in GDP of 4-6% in the recent past, this
needs at a click, is fundamentally strong, is an ambitious target. This would call for
manages risk and adheres to global considerable investments in the
regulations, harness iOS and Android infrastructure and meeting the funding
platforms to the fullest, design better, faster requirements of a high magnitude would be a
and convenient delivery channels will no challenge to the banking and inancial system.
doubt be called a successful bank.
India Vision 2020 sees a nation of 1.3 billion
Indian Banking Industry - Emerging people who are better educated, healthier, and
Economic Scene more prosperous. Urban India would
The inancial system is the lifeline of the encompass 40% of the population as against
economy. The changes in the economy get 28 % now. With more urban conglomerations
mirrored in the performance of the inancial coming up, only 40% of population would be
system, more so of the banking industry. The engaged in agricultural sector as against
Committee, therefore felt, it would be nearly two thirds of people depending on this
desirable to look at the direction of growth of sector for livelihood. Share of agriculture in
the economy while drawing the emerging the GDP will come down to 6% (down from
contours of the inancial system. The "India 28%). Services sector would assume greater
Vision 2020" prepared by the Planning prominence in our economy. The shift in
Commission, Government of India, is an demographic pro ile and composition of GDP
important document, which is likely to guide are signi icant for strategy planners in the
the policy makers, in the years to come. The banking sector.
Committee has taken into consideration the
economic pro ile drawn in India Vision 2020 Small and Medium Enterprises (SME) sector
document while attempting to visualise the would emerge as a major contributor to
future landscape of banking Industry. employment generation in the country. Small
Scale sector had received policy support from
India Vision 2020 envisages improving the the Government in the past considering the
ranking of India from the present 11th to 4th employment generation and favourable
capital-output ratio.
This segment had, however, remained vulnerable in many ways. Globalization and opening up of
the economy to international competition has added to the woes of this sector making bankers
wary of supporting the sector. It is expected that the SME sector will emerge as a vibrant sector,
contributing signi icantly to the GDP growth and exports.
Future Landscape in Indian Banking

India's Rs 77 trillion (US$ 1.25 trillion)-banking industry is the backbone to the economy. The
sector emerged strong from global inancial turmoil and proved its mettle when the developed
economies were shaking. India's banking sector is on a high-growth trajectory with around 3.5
ATMs and less than seven bank branches per 100,000 people, according to a World Bank report.
The statistics are going to improve in near future as the Government aims to have maximum
inancial inclusion in the country. Policymakers are making all the efforts to provide a facilitating
policy framework and infrastructure support to ensure meaningful inancial inclusion. Apart
from that, inancial institutions are collaborating with other service providers (in the ields of
telecom, technology and consumer product providers) to create an enabling environment.
Liberalization and de-regulation process started in 1991-92 has made a sea change in the banking
system. From a totally regulated environment, we have gradually moved into a market driven
competitive system. Our move towards global benchmarks has been, by and large, calibrated and
regulator driven. The pace of changes gained momentum in the last few years. Globalization
would gain greater speed in the coming years particularly on account of expected opening up of
inancial services under WTO. Four trends change the banking industry world over, viz.
1. Consolidation of players through mergers and acquisitions,

2. Globalization of operations,
3. Development of new technology and
4. Universalisation of banking.

With technology acting as a catalyst, we expect trade is just about 0.8%. The long term
to see great changes in the banking scene in projection for growth in international trade is
the coming years. The Committee has placed at an average of 6% per annum. With the
attempted to visualize the inancial world 5- growth in IT sector and other IT Enabled
10 years from now. The picture that emerged Services, there is tremendous potential for
is somewhat as discussed below. It entails business opportunities. Keeping in view the
emergence of an integrated and diversi ied GDP growth forecast under India Vision 2020,
inancial system. The move towards universal Indian exports can be expected to grow at a
banking has already begun. This will gather sustainable rate of 15% per annum in the
further momentum bringing non-banking period ending with 2010. This again will offer
inancial institutions also, into an integrated enormous scope to Banks in India to increase
inancial system. their forex business and international
The traditional banking functions would give presence. Globalization would provide
way to a system geared to meet all the inancial opportunities for Indian corporate entities to
needs of the customer. We could see expand their business in other countries. Banks
emergence of highly varied inancial products, in India wanting to increase their international
which are tailored to meet speci ic needs of the presence could naturally be expected to follow
customers in the retail as well as corporate these corporates and other trade lows in and
segments. The advent of new technologies out of India.
could see the emergence of new inancial
players doing inancial intermediation. For Competitive Landscape and Trends in the
example, we could see utility service Indian Banking Industry
providers offering say, bill payment services
or supermarkets or retailers doing basic The fallout of the inancial crisis and the impact
lending operations. The conventional of regulatory reform on business models and
de inition of banking might undergo changes. bottom lines have been dominant issues facing
The competitive environment in the banking the banking sector for several years, both
sector is likely to result in individual players within the United States and elsewhere. Now,
working out differentiated strategies based on with many of the regulatory pieces in place, that
their strengths and market niches. For period of regulatory uncertainty is giving way
example, some players might emerge as to a new set of challenges and opportunities.
specialists in mortgage products, credit cards How banks are positioning themselves for the
etc. whereas some could choose to future was the focus of the Financial Services
concentrate on particular segments of M&A Symposium in New York, organized by
business system, while outsourcing all other The Merger market Group. The banking
functions. Some other banks may concentrate industry has moved on to shift its focus from
o n S M E s e g m e n t s o r h i gh n e t wo r t h regulations, such as the Dodd-Frank Wall Street
individuals by providing specially tailored Reform and Consumer Protection Act (Dodd-
services beyond traditional banking offerings Frank) and Basel II, to strategic imperatives on
to satisfy the needs of customers they where they can compete and win in the coming
understand better than a more generalist years, in the face of narrow margins, increased
competitor. capital requirements and a tighter consumer
International trade is an area where India's protection.
presence is expected to show appreciable
increase. Presently, Indian share in the global

Many initiatives were put on hold as demands and demographics of the Indian
legislative and regulatory actions were population, the business model of the banking
promulgated. The refocus on core strategy system needs a shift to address speci ic and
will likely impact the kinds of M&A deals unique inancial needs of the consumer. In
pursued by banks of all sizes. For the larger addition, young consumers prefer banks that
banks, what we expect to see is a use multiple distribution channels that are
manifestation of strategy toward more accessible and consume minimum time
divestitures, spinoffs and deleveraging, not and effort. Online banking and mobile banking
big acquisitions, except at the lower end of technology may prove to be disruptive for
the market. The emphasis on new strategies traditional banking methods, as it is gaining
doesn't mean many of the old worries and popularity among Indians.
uncertainties have gone away. Although there
is evidence of a slow recovery in the U.S., it Owing to conservative risk management
remains very regional. The big challenge in practices adopted by the Central Bank of India,
the U.S. is what happens in Washington. Indian banks stood strong during the global
Europe and the future of the eurozone also inancial turmoil, while the banking industry
continue to be issues, as well as challenges in in US and Europe collapsed. However, rising
global markets. non-performing assets ratio is a growing
cause of concern to the banking industry.
Banking assets in India play a crucial role in Indian banks are stable in terms of capital
economic development. It is tightly regulated adequacy ratio and might comply fully with
by the central bank that aims for growth Basel III regulations as scheduled in 2018.
through inancial inclusion and priority
sector lending. The Indian banking system is Overall, changing regulatory landscape,
on an upward growth trajectory and is strong fundamentals, conservative risk
expected to be the third largest banking management, use of updated technology,
industry worldwide by 2020. However, this multiple distribution channels, inancial
goal can only be achieved through inclusion, and a strong focus on customer
liberalization norms as proposed by RBI that service is expected to fuel growth in the Indian
would focus on issuance of on tap banking banking industry. A comparison of the current
licenses, specialized banking licenses, universal banking model against emerging
encouraging consolidation, improving business models prompted by the changing
operational performance of small banks and regulatory and demographic landscape was
nationalized banks, complying with global needed now. Banking Mega Trends for 2020,
regulations and increasing overseas m a rke t s i z i n g , a n d m a rke t s h a re s o f
presence. companies in public, private, and foreign
banking sectors, an overview of the inancial
The Indian banking system follows a performance of different sectors in the Indian
universal banking model where bankers are banking industry have also been provided.
present across all segments and serve all
customers. Owing to the changing needs,

Conclusion Lyne, M.M., Nielson, D.D. and Tierney, M.J. (2009).

Controlling Coalitions: Social Lending at the
The economic growth of the country is an apt Multilateral Development Banks. The Review of
indicator for the growth of the banking sector. International Organizations 4(4) p.407-403.
McMichael, P (2009). Banking on Agriculture: A
The Indian economy is projected to grow at a
Review of the World Development Report 2008.
rate of 5-6 per cent and the country's banking Journal of Agrarian Change 9(2) p. 235-246.
industry is expected to re lect this growth. The Report on Trend and Progress of Banking in India,
onus for this lies in the capabilities of the 2010-11
Reserve Bank of India as an able central Sahu, G.B. and Rajasekhar, D. (2005). Banking
regulatory authority, whose policies have Sector Reform and Credit Flow to Indian
shielded Indian banks from excessive Agriculture. Economic and Political Weekly 40(53)
leveraging and making high risk investments. p. 5550-5559.
The competitive scenario in India is strong, Santosh Ranganath N. (2011), Changing Paradigm
with the landscape primarily dominated by in Indian Banking Sector, Emerging Trends in
Service Sectors, Shanlax Publishers, Madurai, pp.
government banks. Market entry at the
16-20.
country level is expected to be tough for new Santosh Ranganath N., Kama Raju T., (2010), The
players due to the moderately consolidated Principles and Practices of Business Continuity
nature of the industry and extremely high Management in Indian Banking Sector, Global
competition. The key challenges for the journal of Business Management, pp. 125-132.
industry are to reduce NPAs, increase Santosh Ranganath N., Lokeswara Rao T., (2012),
inancial inclusion and raise capital for the Marketing of Banking & Financial Services in India:
Basel III compliance. The Challenges Ahead, International Journal of
Banking and Finance, pp. 49-55.
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Academy of Management Executive 12(4) p. 22-42.

The Impact of Time on The Dr. B. Aiswarya*
Role Con lict of Employed Women Dr. G. Ramasundaram**
(*Professor, Dept. of Management Studies, Sathyabama University.Chennai

** Professor, Dept of Management Studies,St. Joseph's College of Engineering
Sathyabama University, Chennai)
ABSTRACT and single parent families ,there has been

Con lict between work and non work life has much discussion in the popular press about
become an important issue to investigate work family con lict. Even with a growing
because many researchers have found number of companies insisting in work life
signi icant deleterious effects of con lict bene its very little.
between work and non work life. The main
objective of this study is to examine the impact An important issue facing our society is the
of the time dimension of role con lict on its changing work and family roles of Indian
consequences. A convenience sampling women. Because so many women occupy both
technique was used to select women work and family roles their experiences as
respondents. Quantitative as well as paid workers wives, and mothers represent
qualitative data were obtained using primary social contexts for examining
structured questionnaire. Structural equation women's lives (McBride,1990 ). With so many
modelling technique was adopted to obtain women engaged in multiple roles the effect
the results. Finally, based on the key indings, that these social roles have on women's well
some workable recommendations are given. being is worth examining (Repetti,1998a;
Key words: Work life con lict, women , Russo,1990)
working hours , Information technology
sector. Members of dual earner families and families
with young children are more likely to
Introduction experience work family con lict (Kelly and
Work and family is de ined “as a form of Voydanoff, 1985; Voydanoff, 1988) important
interrole con lict in which the role pressures shifts in family structure and accompanying
from the work and family domains are demands needed to be considered. The vast
mutually incompatible in some majority of this research has focused on
respect”(Greenhaus & Beutall,1985).The “family “ in the domain of non work examining
more time individuals allocate to one arena, the speci ic types of work /non work con lict;
the less they have to allocate to the other. work /family con lict work family occurs
When individuals feel that too many when work pressures and family pressures
demands of one domain are unmet they occur at the same time such that
experience work family con lict, which is compliance with pressures in one domain
consistent with a con lict (e.g., work) makes it more dif icult to comply
With changes in societal demographics with pressures in another domain (e.g.
including a growing number of dual career family).

The Impact of Time on The Role Conflict of Employed Women
Literature incompatibility between the behaviors

patterns that are desirable\e in the two
Work Life Con lict: domains. Reported are important
Work and family are two central domains in relationships between work family con lict and
most adult's lives. In recent years research various constructs. First many studies have
into the links between these two domains found relationships between work family
has grown tremendously because of changes con lict and health (mental and physical).
in the demographic composition of the work
force (Edwards & Rothband , 2000). CONSEQUENCES
The popularity of this con lict perspective Job Stress

stress from the scarcity hypothesis , which Lazzarns (1993) advocated that stress is
assumes that individuals have limited time viewed as an aspect of emotion that arises from
and energy . Therefore occupying multiple demands that tax or exceed individual
roles creates inter-role con lict and role resources. Stress is also most prevalent today
overload which in turn proponents the arguably reaching epidemic proportions. Work
hypothesis assure cause psychological place health has become the subject of much
distress and physical exhaustion (Marks, academic research.
1977).
Researchers have found that work stress is
Researchers in this area have distinguished related to work and family con lict. Major Klein
between two types of work family con lict; and Ehrhart (2002) reported that the number
work interfering with family (WIF ) con lict of work hours was related to increased work
and family interfering with work (FIW) family con lict decreased mental and physical
con lict. While the best predictors of WIF health and decreased family functioning.
con lict are work domain variable the best
predictors of FIW con lict are mainly family According to Allen et al., (2000) stress related
domain variables (Kinnunen & Mauno, 1998). outcomes include general psychological strain,
Greenhaus & Beutall (1985) identi ied three somatic and physical symptoms complaints,
major types of work family con lict. The irst depression, abuse, burn out, work related
is time based; Time spent on role performance stress and family related stress (Adams, King
in one domain often precludes time spent in and King, 1996).
the other domain. Time expanded on role
performance may deplete energy or generate Anger
strain. Anger is an emotion that involves a strong
uncomfortable and emotional response to a
The second work family con lict strain based particular provocation. Researchers have
con lict arises when strain in one role affects considered this as one of the effects of
ones performance in another role. The last individual's role con licts (Mayer and Salovey,
type is behavior based con lict which refers to 1997). Anger is associated with tense, verbal
and non verbal attachments.
Anger generates a physiological response of A recent metaanalysis by Kossek and Ozeki

arousal under certain conditions (Hardy and (1998) has also shown work interference
Smith, 1988, Smith and Allred, 1989). It has family con lict to have a stronger relationship
been identi ied that workplaceis one of the with job satisfaction than does family
highest form of interpersonally frustrating interference work con lict . Work role
phenomenon that people generally encounter attributes have been, perhaps, the most
(Allcorn, 1994). However, empirical studies extensively studied job related antecedents of
of anger related events at work (Skarlicki and job satisfaction, namely role con lict, role
Folger, 1997) have focused primarily on the ambiguity, role overload, role stress.
perceptions of subordinates rather than co-
workers or supervisors. Gender studies
elucidated that it is very uncommon for a Although women work for less pay and in jobs
woman to get angry and this kind of that are less intrinsically rewarding, (Hodson,
b e h av i o u r i s c o n s i d e r e d t o b e ve r y 1989) they do not appear to be any less
inconsistent in a society. satis ied with their jobs than men (Cleary and
Mechanic, 1983). The level of support was
Job Satisfaction more salient for the job satisfaction of
Job satisfaction is an internal state that is employed women relative to men.
expressed by affectively and cognitively
evaluating and experienced job with some Researchers suggest that a substantial
degree of favour or disfavour (Brief, 1998). In proportion of married women experience
another perspective, Spector (1997) called con lict between work and family roles
job satisfaction as a multidimensional
(Greenglass, Pantony and Burke, 1989). More
variable that consisted of nine facets,
role related tensions and con licts (Coverman,
communication, contingent rewards, co-
1989; Kelly and Voydanoff, 1985) and higher
workers, and fringe bene its, nature of work,
subjective spillover (Crouter, 1984) among
operating procedures, pay, promotion and
supervision. working mothers compared to
other workers.
The various facets of job satisfaction
constitute namely those antecedents related To t h e d e g r e e t h a t a l t e r n a t i v e j o b
to work conditions like self-supervisor, co- opportunities are available job dissatisfaction
worker, subordinates, the company and its and turnover intentions also remains
management. Researchers in particular positively correlated (Ronen, 1984).There
argued that the most productive and satis ied have been many correlational studies that have
workers were those who earned the highest linked physical or psychological health to job
possible income with the least amount of satisfaction (Begley and Czajka, 1993). The
fatigue. In March and Simons (1958) classic measure of job satisfaction has also been
model of job satisfaction they posited that job associated with higher levels of work
satisfaction was in luenced by the involvement.
compatibility of the work requirements with
other roles.

Depression relationship, rewarding, satisfying paid work,

Depression is a biological-based mental and adequate support networks (Corob, 1987).
illness that can have lasting emotional and
physical effects (Johnson and Indvik, 1997). Self-esteem
Work family con lict serves as one of the Self-esteem according to which an employee
causes for depression among employees has a positive perception of his or her value and
(Beatty, 1996). This depression has got both worth as a member of the organization
individual and work related consequences (Gardner and Pierce, 2001). It is proposed that
like absenteeism, decreased productivity, job an individual's self-esteem determines the
turnover, cognitive dif iculties, coronary heart relative impact of external pressures, role
disease and increased alcohol intake (Allen, sender support and role salience on the
Herst, Bruch and Sutton, 2000). decision to participate in a role activity.
The inding that higher levels of positive Research has shown that high self-esteem can
spillover are related to lower levels of be an important personal resource at work one
depression is consistent with Mark's (1977) which is likely to foster positive attitudes such
enhancement hypothesis. The increase in as job satisfaction or organizational
positive affect associates with positive spill- commitment (Gardner and Pierce, 1998).
over leads to increase in emotional health and
decrease in depression tendencies. MacEwn They also pursue work or family activities that
and Barling (1994) found evidence of gender are compatible with their self-identity. Low
d i ff e re n c e s i n t h e m a g n i t u d e o f t h e self-esteem persons tend to react to external
relationship of both types of work family cues in the environment because they are
con lict to depression and anxiety. uncertain about the correctiveness of their
actions have a high need for approval and are
The depressed individual experiences more susceptible to negative feedback
increased dependence and anger especially (Riordan,Weatherly, Vanderberg, and Self,
with the spouse (Weissman and Paykel, 2001).
1974). Some of the predictors of depression
identi ied in women include low education, His study developed an increased
lack of employment or employment in u n d e r s t a n d i n g o f t h e e ff e c t o f c a re e r
unrewarding work, youth and lower family interruptions had on a women's self-concept
income (Radloff, 1975). development. Work patterns and care taking
p l aye d a n e n o r m o u s i n l u e n c e i n t h e
In one study, (Warren and McEachern, 1983) development of these women's identity self-
depression is associated with lower perceived ef icacy and well-being. It is found that women
self-control, lower perceived accomplishment who held multiple roles had lower levels of
and lower social support. There are some depression and higher levels of self-esteem
factors that do seem to protect women from than women and men who occupied fewer life
depression. These include positive early roles (Barnett and Hyde, 2001).
experiences, a con iding intimate and equal

Turnover Intension Research design: The design applied in this

Turnover intentions refer to an individual's study is conclusive type of descriptive research
own estimated subjective probability of design. It is appropriate to use this method as
permanently leaving the organizations at this research describes the relationship
some point in the near future (Hamonds, between different variables and concludes as
1996).Turnover bears detrimental effects on a such. It tries to understand the behavioral
irm's productivity and researches have differences of respondents.. Besides, the view
attempted to uncover the underlying reasons of researcher is not having any role in the
and processes (Nollen, 1982). Workplace conclusion of the study.
attributes have been shown to be important
predictors of perceptions about the job and Data: Both primary and secondary data are
turnover (Oldham and Rotchford, 1983). used in this study to attain the objectives.
Structured questionnaire is used for gathering
Speier and Venkatesh, (2002) found that information from respondents that has been
person technology it is negatively related to drawn on objectives of study and inally drafted
absenteeism and turnover. Mark and Simon based on pilot study. For testing the reliability,
stated satisfaction in Price's model interacts pilot study has been conducted by distributing
w it h op p ort u n it y for t he a ltern a t ive questionnaires among 50 respondents. On the
employment opportunities afforded by basis of their views and reliability of scales,
economic condition to produce a desire to questions have been modi ied and
separate from the organization (Kossek, questionnaire has been so redrafted as to meet
Colquitt, and Noe, 2001). minimum value of reliability which has been
tested further through survey among another
However, when work interference family 50 respondents.
con lict is high, leaving the organization
might reduce such interferences and Questionnaire: Set of questions pertaining to
subsequent con lict allowing the individual to the objectives of the study is prepared with the
meet family obligations (Frone, 2003). help of previous studies conducted with
reference to variables. Questionnaire consists
of both qualitative and quantitative items.
Personal reasons also shape turnover, family
Moreover, apart from multiple choice
demands such as marriage and number of
questions, different types of scales are used to
dependent children is negatively related to
measure the respective variables.
turnover. Gender also bears an effect in that
women are more likely to quit than men
Sampling : Since the population size is very
(Arnold and Feldman, 1982).
large, sampling technique is applied to select
sample unit. In this study, convenience
Research methodology
sampling technique is adopted for selecting
Research methodology is the frame work of
the various IT irms.. Sample unit of this study
any research work that explains as to the
is only women both married and unmarried
research design, the data used, sampling
employed in IT industry in India.
technique applied, tools used for analysis and
so on.
Validity and Reliability: Reliability of scales is tested with cron bach alpha. The following are
the alpha values for respective scales that have satis ied the minimum requirement of 0.7.Work
Family Con lict:0.923
HYPHOTHESIS
H1 - There is no signi icant impact of work life con lict time on job stress.
H 2- There is no signi icant impact of work life con lict time on anger.
H3 - There is no signi icant impact of work life con lict time on job satisfaction.
H4 - There is no signi icant impact of work life con lict time on depression.
H5 - There is no signi icant impact of work life con lict time on self-esteem.
H6 - There is no signi icant impact of work life con lict time on turnover intention.
Analysis and Interpretation

Structural Equation Modelling technique was administered to obtain the results.
The variables considered for the analysis is Work life con lict, and the consequences are Turn
over intention , Self esteem, Depression, Job satisfaction , Anger .
Regression Weights
Estimate S.E. C.R. P

Turnover WFC Time
<--- .144 .064 2.231 .026
intention
Self-esteem <--- WFC Time .092 .038 2.433 .015
Depression <--- WFC Time .142 .047 3.030 .002
Jobsatisfaction <--- WFC Time -.207 .046 -4.472 ***
Anger <--- WFC Time .235 .055 4.280 ***
Job stress <--- WFC Time .523 .046 11.365 ***
Variances

WFC Time .644 .037 17.277 ***
e1 .451 .026 17.277 ***
e2 .641 .037 17.277 ***
e3 .458 .027 17.277 ***
e4 .466 .027 17.277 ***
e5 .305 .018 17.277 ***
e6 .885 .051 17.277 ***

Co-variances
e1 <--> e2 .068 .022 3.045 .002
e2 <--> e3 -.056 .022 -2.500 .012
e3 <--> e4 -.065 .019 -3.399 ***
e4 <--> e5 -.041 .016 -2.646 .008
e5 <--> e6 .005 .021 .218 .827
e1 <--> e3 -.034 .019 -1.844 .065
e1 <--> e4 .108 .019 5.597 ***
e1 <--> e5 .009 .015 .576 .565
e1 <--> e6 .079 .026 3.044 .002
e2 <--> e4 .223 .024 9.243 ***
e2 <--> e5 -.045 .018 -2.470 .014
e2 <--> e6 .114 .031 3.664 ***
e3 <--> e5 .103 .016 6.490 ***
e3 <--> e6 -.172 .027 -6.374 ***
e4 <--> e6 .111 .027 4.159 ***
Goodness of Fit
Model RMR GFI AGFI PGFI

Default model .000 1.000
Saturated model .000 1.000
Independence model .191 .571 .463 .456
The structural equation modeling is a statistical model that seeks to explain the relationship
among multiple variables. It depicts all of the relationships and variables involved in the analysis.
With this model work family con lict is considered as the independent variable and all the
consequences namely turnover intention, self-esteem, depression, job satisfaction, anger, job
stress is the dependent variable. It is more convenient to portray a visual form know as the path
diagram. The straight arrow depicts a dependence relationship, the impact of one variable on
another variable causes or antecedents to the effect or outcomes.
The simple correlation is depicted with a two headed curved arrow to show the degree of
association that gives rise to their relationships. With estimates for each path an interpretation
can be made of each relationship represented in the model.
In the study, the work family con lict is categorized into three dimensions of time, strain, and
behaviour as already discussed. The dependency of these variables together on work family
con lict is represented with the help of regression weights.
Job stress is identi ied to have the highest value of estimate (0.523) followed by anger (0.235).
Self-esteem is having the least impact (0.092). Whereas job satisfaction is having a negative
relationship with work life con lict time (-0.207) which shows that as one increases the latter
decreases.
With respect to work life con lict strain, job The standard errors are minimum and range
satisfaction as a variable is having the highest from (0.030 - 0.034). The variance estimates
value of regression weights (0.319) followed of work family con lict strain is (0.781)
by job stress (0.232). The least is contributed higher than work family con lict-time
by anger having a positive relationship (0.644) and the least by work family
(0.074) self-esteem (-0.008) and turnover (- con lict-behaviour (0.621). All the three
0.252) is negatively related to work life mentioned variances are highly signi icant.
con lict strain.
Residual in structural equation model refers to
Regression weights of the consequences on how far away an estimated co-variance is from
work family con lict - behaviour indicate that the observed co-variance for the two
the highest value (0.129) is contributed by variables. The error in prediction for each co-
job stress, followed by turnover intention variance term creates a residual. Goodness of
(0.114) and the least by self-esteem (0.023). it indicates how well the speci ied model
The standard error for each estimate is reproduces the co-variance matrix among the
presented in the table. indicator items.
The probability values denote the Goodness of it index is a it statistic and values
signi icance of the relationship. Almost all the of greater than 0.90 are typically considered
variables are signi icant except anger (work good. The Goodness of it value is (0.90) and
family con lict strain) self-esteem (work coincides with the it model criteria. The lower
family con lict strain), and all the mentioned root means residual values represent better
six consequences towards work life con lict it and higher values represent worse it.
behaviour).
In the above model RMR value is estimated to
The model that produces an estimated co- be 0.000 and proves to be good it. The root
variance matrix that is within sampling mean square error of approximation is
variation of the observed co-variance matrix another measure that attempts goodness of it
are generally thought of as good models and test.
would be said to be it. Then the co-variance
among three dimensions of work life con lict It better represents how well a model its a
is found to be signi icant. population not just a sample used for
estimation. Lower RMSEA values indicate
The co-variance between work family con lict better it and is estimated to be (0.265) in the
time and work family con lict-strain is the proposed model.
highest (0.444) followed by the co-variance
work family strain and work family con lict
behaviour (0.437). The least co-variance is
between the work family con lict-time and
work family con lict-behaviour (0.362).

ANGER
e1
JOB STRESS
e2
JOB SATISFACTION
e3
WORK FAMILY
CONFLICT -TIME DEPRESSION
e4
SELF ESTEEM
e5
TURNOVER
e6
INTENTION
Findings
There is no significant impact of work life conflict time on job stress.

There is no significant impact of work life conflict time on anger.
There is no significant impact of work life conflict time on job satisfaction.
There is no significant impact of work life conflict time on depression.
There is no significant impact of work life conflict time on self-esteem.
There is no significant impact of work life conflict time on turnover intention.
Job stress is found to be highly in luenced by work life con lict time followed by anger. The factor
that is least in luenced by work life con lict time is self-esteem. Not only the degree of
relationship between work life con lict and job satisfaction as a consequence plays an
important role but also the direction and the nature of relationship do have a signi icant
impact on the outcome. Job satisfaction and work life con lict time are having a negative
relationship with each other which means that if work life con lict increases job satisfaction
decreases and vice versa.
The work life con lict time is found to have insigni icant relationship with turnover intention,
self-esteem, and depression train and anger, and self-esteem are found to be insigni icant.

CLASSIFICATION OF CONSEQUENCES It is evident from the study that married

BASED ON SIMILARITY. women are subjected to more work life con lict
than unmarried women. Hence, married
Anger and depression both occur together as women can be helped out through workshops
a consequence of work life con lict. Job and training programs in dealing with work
satisfaction and stress, as a consequence, are family con lict in all three dimensions of time,
closely associated with one another which strain and behaviour.
interpret that the impact of work life con lict
on the these two consequences will be Conclusion
similar. Job stress is also another outcome of I n s u m m a r y, t h i s s t u d y p r o v i d e s a
con lict which occurs along with anger and comprehensive frame work of the time
depression dimension of work life con lict on the
It can be inferred that one is responsible for consequences. This theoretical and empirical
the occurrence of another or an external study of work and family con lict are in
factor including work life con lict may be conformity with some of the previous
responsible for the same.Self -esteem and research work conducted in different
anger both as a consequence do not have any Industries and Countries. The indings derived
relationship with each other and a similar from this research would help Organizations
pattern is observed between self-esteem in general, to manage and reduce the work
and depression , which interprets that self- family con licts among their employees,
esteem through a consequence of work life thereby they can increase their employees'
con lict occurs distinctly and does not ef iciency. Moreover this research will pave
associate itself with any other consequence. way for future studies in the area of Work
Anger and depression are identical in their Family con lict.
relationship. The level of increase in the anger
and depression results in the same level of References
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Begley, T. M., and Czajika, J. M. (1993). “Panel The Sociological Quarterly, 30, 385-399.
analysis” of the moderating effects of commitment Johnson, P. R., and Indvik, J. (1997). The boomer
on job satisfaction, intent to quit, and health blues: Depression in the work-place. Public
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Brief, A. P. (1998). Attitudes in and around strain among employed parents Family Relations,
organizations. Thousand Oaks, CA : Sage. 34, 367-374.
Cleary, P. D., and Mechanic, D. (1983). Sex Kelly, R. F. and Voydanoff, P. (1985). Work family
Differences in psychological distress among strain among employed parents Family Relations,
married people. Journal of Health and Social 34, 367-374.
Behaviour, 24, 111-121. Kinnunen, U., and Mauno, S. (1998). Antecedents
Corob, A. (1987). Working with depressed women: and outcomes of work family con lict among
A feminist approach. Brook ield, VT: Gower. employed women and men in Finland. Human
Coverman, S. (1989). Role overload, role con lict, Relations, 51, 157-178.
and stress: Addressing consequences of multiple Kossek, E. E., and Ozeki, C. (1998). Work-family
role demands. Social forces, 67, 965-982. con lict, policies, and the job life satisfaction
Crouter, A. C. (1984). Spillover from family to relationship: A review and directions for
work: The neglected side of the work-family organizational behaviour human resources
interface. Human Relations, 37, 425-442. research. Journal of Applied Psychology, 83, 139-
Edwards, J. R., and Rothbard, N. P. (2000). 149.
Mechanisms linking work and family: Clarifying Kossek, E. E., Colquitt, J. A., and Noe, R. A. (2001).
the relationship between work and family Care giving decisions, well-being, and
constructs. Academy of Management Review, performance: The effects of place and provider as a
25(1), 178-199. function of dependent type and work-family
Frone, M. R. (2003). Work-family balance. In J. climates. Academy of Management Journal, 44, 29-
Campbell (Ed.), Handbook of occupational health 44.
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Gardner, D. G., and Pierce, J. L. (2001). Self-esteem as a subset of emotion .In L. Goldberger and S.
and self-ef icacy within the organizational Brenitz (Eds), Handbook of stress: Theoritical and
context: A replication. Journal of Management clinical aspects 21-39.
Systems, 13, 31-48. MacEwen, K. E., and Barling, J. (1994). Daily
Greenglass, E. R., Pantony, K. L., and Burke, R. J. consequences of work interference with family and
(1989). A gender-role perspective on role con lict, family interference with work. Work and Stress, 8,
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Wo r k a n d fa m i ly : T h e o r y, re s e a rc h a n d
applications 317-328.
Greenhaus, J. H., and Beutall, N. J. (1985). Sources

Recovery Performance and Non-Performing Assets Dr. G.P. Bhandari*
of Regional Rural Banks in North East India
(*Assistant Professor, Kaziranga University, Jorhat)
Abstract: Review of Literature:

The given study has focused on the Some of the important past study done on
recovery position of RRBs in the six regions of credit, recovery performance and NPAs of
the country and put care to see frequency RRBs in the country and the North-East level in
distribution of states recovery position in particular are as follows:
percentage basis. In the study it is also tried to Tarapore (1994) observed that there is a
see the magnitude of NPAs of RRBs and public reasonable spread between cost of raising
sector banks in the country for various years. fund and the return of development of funds.
At the same time given research paper has also He suggested that rural inancial agencies like
diagnosed asset classi ication of RRBs in the RRBs should not hesitate to inance large
north-east and all India level along with projects in rural areas strictly on commercial
overall recovery of bank advances. The entire basis. Rangarajan (1996) in a study on the role
study side by side provides a comparative of rural credit highlighted that the drive of
picture of RRBs functioning in the various Indian public policy towards rural credit to
regions of the country besides associating ensure that suf icient and timely credit at
with the all India level igures. reasonable rates of interest. The study
suggested that credit should be made available
K e y Wo r d s - R R B s , R e c o v e r y, A s s e t to a large segment of rural population to the
Classi ication, NPA, Public Sector Bank, North- possible extent. Pati (2005) in his study of
East Region(NER). Subansiri Gaonlia Bank in the Lakhimpur
district of Assam suggested that credit
Introduction: Regional Rural Banks (RRBs) appraisal should be properly taken care of to
have come up to grow the rural economy of avoid incidence of NPA. In each branch at least
India by providing banking services to the one trained staff should be recruited. In this
rural masses. In 1975 new systems of inancial regard, the branches should go for rating the
institution in the country was set up to borrowers on a scienti ic basis rather than
provide the adequate means of inancial sanctioning loan on the need basis of the
service to the poor people particularly borrower. Further he suggested the bank can
residing in the rural areas of the country. It go for securitization of its loan assets and can
was thought that the new institution would transfer some of its bad loans to the Asset
feel the pulse of local problems and would Reconstruction Company (ARC). Singh and
able to direct its business in the growth of Singh (2009) in their paper examined the
backward areas with new outlook and also recovery performance of Manipur Rural Bank.
nourishes its own success. On 2nd October The study observed that the repayment of
1975 ive RRBs were established whose loans mainly depends on proper utilization of
number has increased to as high as 196 in the loan amount, supply of quality assets,
2003-04 and at present there are 81 numbers generation of suf icient income from schemes,
of RRBs operating in the country as a whole. availability of infrastructural and marketing
facilities, willingness to repay, continuous
supervision and follow-up visits etc.
Recovery Performance and Non-Performing Assets
Ghosh and Ghosh (2011) established that NPA is an important parameter in the analysis of
inancial performance of a bank as it results in decreasing margin and higher provisioning
requirements for doubtful debts. Various banks from different categories together provide
advances to different sectors like agriculture, Small Scale Industries, priority sector, public sector
and others. These advances require pre-sanctioning appraisal and post-disbursement control to
contain increasing NPAs in the Indian banking sector. The reduction of NPA is necessary to
improve pro itability of banks and comply with the capital adequacy norms as per the Basel
Accord.
No special study has been done to know the recovery performance and the analysis of non-
performing assets of RRBs in the North-East. Thus the given study attempts to know the recovery
performance and the analytical evaluation on non-performing assets of RRBs of the North-East
and RRBs in the country in general. In the study data referred is till 2010 as collected from the
various available sources at current situation.
Recovery Performance of RRBs:
From table-1 it is revealed that the recovery performance of RRB was estimated at 80.03 per cent,
as on 30 June 2010, as compared to 77.85 per cent as on 30 June 2008. It is also observed that the
North-East Region has remained lower in terms of recovery percentage throughout the period
under consideration. The RRBs have emerged as a strong intermediary for inancial inclusion in
rural areas by opening a large number of “No Frills” accounts and inancing under General Credit
Cards (GCC). RRB as a group in the northern and southern region registered a recovery
performance above the national average throughout the entire period. Table -1 presents the
region-wise recovery position of RRBs in India.
Table-1
Recovery Positions of RRBs As on March
(in Percentage)
Source: NABARD Annual Report, Various Issues

Table- 2 shows frequency distribution of states according to the levels of recovery of RRBs. A
recovery of above 80 per cent was achieved by 39 RRBs in the country, while 37 RRB had recovery
levels ranging above 60 per cent but less than 80 per cent. Six RRB had recovery more than 40 per
cent but below 60 per cent. None of the RRBs is having recovery of less than 40 per cent.
Table-2
Frequency Distribution of States According to Levels of
Recovery of RRBs (As on 30 June, 2010)
(Figures in parentheses against each state indicate number of RRBs)

Source: NABARD Annual Report, 2010-11

Magnitude of NPAs in RRBs:

The Indian banking system had acquired a large quantum of NPAs, which can be termed as legacy
NPAs. The high level of NPA of the Indian inancial sector re lects country's poor bankruptcy laws.
The gross NPAs of scheduled commercial banks in absolute term reduced from Rs. 60,841 crores
in March 2000 to Rs. 50,486 crores in March 2007 and thereafter started to increase and reached
to 89, 017 crores in March 2011 (RBI, 2010-11). This has been largely possible because of the
huge provisioning that most of these banks could make as a result of growth in treasury income
and, therefore pro its. The gross NPAs of RRBs in absolute term reduced from Rs. 3067 crores in
2001-02 to Rs. 3084 crores in 2009- 2010. It has been observed that the percentage of net NPAs to
total advances of RRBs declined from 11.13 per cent in March 2001-02 to 3.19 per cent in 2007-
08 and further to 1.80 per cent in 2009-10 (NABARD). The gross NPAs as per cent of total
advances also declined to 3.72 per cent from 16.46 per cent during the same period. This
signi icant reduction of NPAs may be due to the de initional changes of NPAs and appropriate
strategy for controlling the fresh accretion of NPAs. The table -3 presents the gross and net NPAs
of RRBs and PSBs in India.
Table-3
Gross and Net NPA of RRBs vs PSBs
Source: 1. RRB Monitoring, Key Statistics of RRBs 2009-10 and Annual Report of NABARD, Various
Issues
1. Trend and progress of Banking in India, Various Issues
It is revealed that though NPAs maintaining a declining trend across all segments of banking
sector, RRBs position are inferior as compared to PSBs. The reasons of decline of NPAs to total
advances may be attributed to change in the composition of assets in favour of investment in
government and other approved securities and the banks unwillingness or inability to assume
higher exposure to small and medium enterprises and farm sector.
Asset Classi ication of RRBs:

The table-4 exhibits the asset classi ication of RRBs in the North-East and all India level.
It is observed that in all India level the total amount of loan outstanding of the RRBs in
March, 2010 was Rs.82,81,910. 28 lakhs.
Table-4
Asset Classi ication of RRBs in North-East and All India, March 2010
(Amount Rs. in Lakhs)
(Figures in brackets indicate percentage to total loans and advances)
Source: RRB Monitoring, Key Statistics of RRBs 2009-10 and Annual Report of NABARD, Various
Issues

Similarly it is also revealed that the NPA as 88.70 per cent while the eastern region RRBs
per cent of advances of RRBs in NER was 6.50 have the lowest position of 73.10 per cent of
per cent in March 2010 while the recovery in the country. In the same year
corresponding igure for RRBs of the country recovery position for the RRBs in the country
as a whole was 3.72 per cent. The foregoing country as a whole is 80.03 per cent.
analysis aptly demonstrates that the malady 2. As on June, 2010 it is observed that out of 82
of high level of NPAs eroding the pro itability RRBs in the country, 39 RRBs have recovery
of banks is not con ined to RRBs alone, but it percentage of more than 80 per cent while
is severely present in the RRBs of NER also. another 37 RRBs have recovery percentage
The RBI in this respect proposed prompt between 60 to 80 per cent and remaining 6
corrective action (PCA) mechanism for RRBs have recovery percentage of 40 to 60 per
arresting the menace of NPAs. On the other cent.
hand, RBI has introduced various measures 3. Over the years of study as observed from
like credit risk management models, table-3 it is found that NPA to advances of the
Compromise Settlement methods, effective RRBs in the country is continuously in
use of debt recovery tribunals (DRT's), Asset declining trend. In 2001-02 the net NPA to
Reconstruction Companies (ARC) and advances was 11.13 per cent which sharply
Recovery of Debts, Securitization and declined to 1.80 per cent in 2009-10.
Reconstruction of Financial Assets and 4. It is also found that in terms of NPA to
Enforcement of Security Interest (SRFAESI) advances the performance of the public sector
Act-2002, Circulation of information on banks in the country is better than the
defaulters, Corporate Debt Restructuring performance of RRBs as a whole. In 2001-02
(CDR), lok Adalats and so on. With a view to the net NPA to advances of the RRBs in the
provide an additional option and developing country was 11.13 per cent which declined to
a healthy secondary market for NPAs, the 1.80 per cent in 2009-10. On the other hand
guideline relating to sale/ purchase of NPAs the net NPA of public sector banks in the
were issued in July 2005 covering the country in 2001-02 was 5.8 per cent which
procedure for purchase/ sale of NPAs by declined to 1.09 per cent in 2009-10 per cent.
banks valuation aspects, prudential norms. It indicates that public sector banks are doing
The guideline were partly modi ied in May better than RRBs in managing the non-
2007 whereby it was stipulated that at least performing assets.
10 per cent of the estimated cash lows 5. It is found that in March, 2010 Tripura Rural
should be realized in the irst year and at least Bank has the NPA of 3.60 per cent which is the
5 per cent in each half year thereafter subject lowest in the North-Eastern Region and is
to full recovery within three years. better than the RRBs in the country as a whole
of 3.72 per cent. During the same period the
Findings: NPA of RRBs as a whole of the North-Eastern
Some of the important indings of the study Region was 6.50 per cent. It indicates that
are- RRBs in the North-Eastern Region in average
1. It is found that in 2010 northern region are performing low in managing the NPA than
RRBs have the highest recovery position of the RRBs in national average.

Conclusion: Bank , Political Economy Journal of India, (Jan-

For the better sustainability of RRBs in the July,2011)
country and mainly in the north-east RRBs 6. Nitin, Bhatt and Thorat Y. S. P. (2004); "India's
must have to improve its recovery of loans and Regional Rural Banks: The Institutional Dimension
of Reforms", National Bank News Review, NABARD,
advances by better managing the non-
April-September
performing assets. They must need to learn 7. Pati, A.P. (2005); ‚Regional Rural Banks in
from their parent banks and other public Liberalized Environment , A Mittal Publication,
sector banks in regard to the rational New Delhi
management of non-performing assets. RRBs 8. Poongavanam. S (2011); ‚Non-Performing Assets:
function more in backward regions as Issues, Causes and Remedial Solution , Asian
compared to other public sector banks and Journal of Management Research. Online Open
thus need to understand their own business Access publishing platform for Management
viability and formulates products which are Research, 2(1)
more suitable to the region in which they are 9.Rangarajan, C, (1996); “The Role of Rural Credit”,
RBI Bulletin, 1(5), May
operating. RRBs need healthier management
of its non-performing assets with more 10. Shivappa, H (2007); "Working of Regional Rural
rational and indigenous policies besides its Banks in India," Indian Journal of Agricultural
legal ways of NPA management. RRBs Economics, July 1, 2007
necessitate to design in a better structure in 11. Shivappa, H (2007); "Working of Regional Rural
all the states to provide effective solution for Banks in India," Indian Journal of Agricultural
inancial products to rural based population Economics, July 1, 2007
and to bring inclusive growth and 12. Short, B.K. (1979); "The Relation between
d e ve l o p m e n t i n t h e c o u n t r y. B e t t e r Commercial Bank Pro it Rates and Banking
management of co-operative banks and RRBs Concentration in Canada, Western Europe and
Japan", Journal of Banking and Finance, Vol.3, pp-
in the country as whole is the only effective
209-219
solution to develop the India's rural economy. 13. Shylendra H. S. (1996), "Institutional reform and
rural poor: A study on the distributional
References: performance of a regional rural bank", Indian
1. Ahmed, J.U. (2003); “The Productivity of Public Journal of Agriculture Economics, Vol. 51, pp 301-14
Sector Banks”, Productivity, National Productivity 14. Shylendra, H. S (1995), "Lender Viability and
Council, New Delhi Lender Behaviour - A Case Study of RRB in South
2. Akhan, J.A. (2009); ‚Non-Performing Assets India" Saving and Development, pp 231-42
Management of Non-Banking Financial 15. Sikidar, S (1997) ; “Computation of NPA, Income
Companies: Introspection , The Management Recognition and Impact on Reporting of Bank
Accountant, (February) A c c o u n t ”, T h e M a n a g e m e n t A c c o u n t a n t ,
3. Ghosh. D and Ghosh S (2011); ‚Management Of (November), p – 811
Non-Performing Assets In Public Sector Banks: 16. Singh, N.T and Singh T. J. (2009); ‚Recovery
Evidence From India , International Conference Performance of RRBs: A Case Study of Manipur Rural
on Management (ICM 2011) ( Proceeding) Bank , Journal of Accounting and Finance,
4. Hosmani, S.B (2002); ‚ Performance of Regional 23((1):66-74, October 08 – March 09
Rural Banks , Anmol Publications Pvt. Ltd, New 17. Sinha, S, Tanmay, C, Orlanda, R and Pathak, N
Delhi (2003); “The Outreach/Viability Conundrum: Can
5. Kumar, R and Sharma, M (2011); ‚Rural banking India's Regional Rural Banks Really Serve Low-
in Himachal Pradesh: a comparative study of Income Clients'?”ODI Working Paper No. 229, ODI,
Himachal Gramin Bank and Parvatiya Gramin London
Book Review M. S. Rao*
Managing People at Work

Pp 416 (2013)
Publisher : Routledge
ISBN-13: 978-0415534390
(*internationally recognised Leadership guru,

proli ic writer and speaker)
“In a society whose communication component is becoming

more prominent day by day, both as a reality and as an issue, it
is clear that language assumes a new importance.” –
Jean-Francois Lyotard
What are the Details of the Book? company. The book also addresses the need to
understand and contribute to the strategic
If you want to acquire knowledge about discussions which are expected in senior
human resources management, read this management forums.
book. If you want to share knowledge on
HRM to students of MBA and EMBA, read this The book describes the links between
book. If you want to manage and lead at the company strategy, human resource (HR)
workplace to grow as a manager and leader, planning and implementation using cost--
read this book. Julian Randall and Allan J. bene it analysis to illustrate the hard and soft
Sim's authored book Managing People at approaches to HRM. It also looks at evaluating
Work is divided into 12 chapters. the results of HR in terms of both ef iciency and
effectiveness in the main management
This book arises from the need of students interventions that lie within the human
who have little or no threshold knowledge of resource development activities. Students are
human resource management but who need aided with their understanding by activities
to link it to their studies in other subjects. This that lie at the end of each chapter. These
book encourages readers to examine the exercises can be done individually or in tutor-
underlying concepts that reach out beyond led groups.
discrete disciplinary boundaries and require
connection with theories from different
disciplines and their common practice
wherever it applies to people within a

Book Review
What is Inside? up with his four basic dimensions of cultural

difference between nations: power distance;
It contains amazing case studies with individualism vs. collectivism; masculinity vs.
diversi ied examples to ensure the HRM feminity; and uncertainty avoidance. He came
takeaways to the readers. For instance, a up with a ifth dimension that he initially
senor of icer retired from the armed service called 'Confucian dynamism' but that he later
and took up a position of chief executive of a changed to 'time orientation' (meaning long-
local authority. His style was command and term vs. short-term approach to life and
control and he tended to send memos and work).
post notices that summoned managers to
meetings and indicated that decisions had The book highlights various new concepts. For
already been made. This approach was instance, it outlines about graduate attributes
extremely uncongenial to senior members of and explains the de inition of Boden et al;
his staff. After three months he lost the 2000 as follows: “Graduate attributes are the
cooperation and good will of his colleagues qualities, skills and understandings a
and left the job. He then became managing university community agrees its students
director of a debt collecting company where should develop during their time with the
his style was a perfect it and went down well institution. These attributes include but go
with his staff, many of whom were ex-service beyond the disciplinary expertise or technical
personnel themselves. knowledge that has traditionally formed the
core of most university courses. There are
The book shares Charles Handy's inspiring qualities that also prepare graduates as agents
story of his time as head of a business school. of social good in an unknown future.” It
He was approached by a young millionaire describes the four main areas of graduate
who asked to be admitted to a student to one attributes as follows: academic excellence;
of the university's business degree courses. critical thinking and communication; learning
Handy expostulated with him that he already and personal development; and active
knew how to be successful as a businessman, citizenship and engagement in the wider
so what need had he of studying further. The world of work and society.
young millionaire answered, 'I want to
discover why I was successful – otherwise I The book explains about Aristotle who taught
shall not be able to repeat it.” Handy accepted about the essentialness of three presentation
him on the course. components as follows:
The book unveils that Geert Hofstede is 1. Ethos: The ability of the presenter to
perhaps the most well-known researcher to establish credibility with the audience.
devise what was to become part of the staple 2. Pathos: The ability of the presenter to
content of most courses on national cultures. display and arouse passion with the audience.
His research into subjects in IBM, a company 3. Logos: The ability of the presenter to
that at the time was spread throughout most exemplify the stature of an expert with the
countries in the world, enabled him to come audience.

Book Review
Looking at these very brief statements they However, don't overload your audience's
raise some very interesting issues. Let's look brains. Keep the information on each visual aid
at them one at a time. First is Ethos and it is to a minimum and remember your time limit.
really quite simple: why should I waste my You must give your audience time to look at and
time listening to you if you don't appear to be absorb the information. If every slide is up for
a credible person? In other words, if you don't ive seconds they aren't going to be able to do
seem secure in what you are saying why that.
should I listen? Second, we must look at
Pathos, why would we want to display and In conclusion, tell them what you are going to
arouse passion? Aren't we meant to be being tell them; tell them it; tell them what you tell
professional here? Well the answer is really them (repetition brings remembrance);
simple, if you don't care about the topics why answer the questions (it will be easy because
should the audience? One of the hardest parts you are prepared).
of presenting is keeping the audience
interested. Third, we have Logos, once again it
is about why I should spend my precious time HRM Takeaways
listening to you. If you don't appear to be
expert in the ield that you are presenting on  There has been an increasing focus in recent
then exactly why should I listen to you? So years on the rise in the numbers of knowledge
Aristotle's essentials may be old but they are workers. There are those who would say that
relevant today. jobs have always required knowledge to be
conducted effectively. But we can probably
The elements of presentation are purpose, accept that more jobs require knowledge, skill
audience, planning, design and and experience prior to engaging with the
implementation. When you close your work required and that though there are
presentation, you must consider the training paths initially for most occupations,
following aspects: know when to stop; bring for knowledge workers their expertise has
all your points together; repeat them for the often been developed through experience with
audience (repetition brings remembrance); clients in their ield and continuing
and remind them what they mean. professional development in their working
lives.
It has been suggested that roughly 24 hours  The four key roles of HR are: strategic
after hearing a presentation, the listener will partner; change agent; administrative expert;
forget at least 50 per cent of all the and employee champion.
information presented. In 24 more hours,  Management is both an art and a science. The
another 50 per cent will be forgotten. So if you science can be learned from books or lectures.
want people to remember your key points But the art can only be acquired by practicing
then emphasize and repeat. the skills as closely as can be replicated to
conditions in the workplace.
Approximately 80 per cent of what we learn is  The common curriculum for L&D was divided
learned visually and only 20 per cent is into three core areas: working in the speci ic
learned aurally. That makes visual tools such department, leadership and management
as PowerPoint very useful in presentations. development and core skills.
Book Review
 Being assertive is about expressing yourself. those who ind they are struggling to
It is about making your personal rights and understand something or need extra practice
feelings clear to others. Assertiveness is an before they become familiar with new
attitude and a way of acting in any situation knowledge and skills development. Training
where you are required to express your for trainers is an important investment
feelings, ask for what you want or say no to because people learn in different ways, and at
something you do not want. Assertiveness is different speeds.
about self-con idence. It is about having a  Traditionally training can address three of
positive attitude towards yourself and the four headings of the personnel pro ile:
towards others. It is about standing up for knowledge, skills, experience and attitude.
your needs and interests in an open and Most training requires both an element of
direct way. Remember that being assertive in underpinning knowledge and a level of skill to
the workplace, just as elsewhere, doesn't communicate that knowledge.
mean trampling on others and it certainly  Theoretical knowledge may require formal,
doesn't mean letting others trample on you. classroom style instructional technique, laid
You need to make your case without belittling out in a way that interests the trainees and
the work of others but also without giving gives examples and exercises of theory in
them undue credit for your success. practice. Stories based on experience can be
 Humans have a requirement for a certain useful to trainees and are enhanced by trainers
amount of space around their bodies in order who are experienced and knowledge in the
to feel comfortable and not threatened. subjects they instruct in.
Distances vary with individuals and the  Skills development is usually hands-on and
cultures in which they were brought up. experiential. Role-play and ilming of activities
Violating this personal space can be seen as provide a useful opportunity to exercise the
an aggressive action so try to avoid it. skills in the likely scenarios to be faced in
 Charity may begin at home but your career business. Video recording can be used to
path is guided in the workplace. Learning to capture and performance of those involved
be assertive in the workplace is a vital part of and allow group and tutor comment and
being successful. In the workplace you will feedback on what has been achieved.
need not only to be aware of your  The three steps that trainers must learn
achievements but also to have the ability to about imparting their knowledge and skills to
make others aware of them. If you can't do others are: I hear-and I forget; I see-and I
this you are likely to miss out on remember; and I do-and I understand.
opportunities.  Interactive training can achieve all three
 Finding the right people for business has levels, because while knowledge or principles
always been a challenge and sometimes can be taught deductively, the supporting skills
problem. At present more than 80 per cent of are taught and tested inductively. This gives the
companies in the EU complain that they added advantage of developing knowledge and
cannot ind the people they need to staff their skill together in individuals and reinforcing
business effectively. This is in spite of the group learning at the same time. Shared group
highest unemployment igures that have preparation for interactive skill learning
been seen in the EU countries since the great should give added con idence and more
depression of the 1930s. insightful feedback to the individual from the
 There are many trainers who are good at group and trainer.
what they do, but have no sympathy with  It requires coaching skills (developing skills

Book Review
and knowledge) and sometimes counseling What is the Recommendation?

skills (encouraging self re lection and
exploring feelings) and these cannot be This book is well researched and is written in a
assumed in many managers, however conversational tone. The book contains lots of
experienced they may be in their own job. stories and case studies in boxes. It serves as an
 In the modern working environment it is academic and reference guide for the students
more important than ever to be able to work of MBA and EMBA. It is useful for students,
as part of a team. The days of the gloriously educators, learners and HR scholars and
isolated 'expert' have long gone. Globalization practitioners. Enjoy reading this book!
and technological change has made team
working essential. Maybe you do hate people “If you want a happy ending that depends, of
but then maybe you had better learn to get course, on where you stop your story.” – Orson
along with them. It is important to get along Wells
with your team members but you don't have
to agree to be their best friend. Sometimes References
being overly friendly can have a negative http://www.routledge.com/books/details/9780415534
impact on the effectiveness of a team. As part 390/
Managing People at Work Julian Randall, Allan J.
of a team you should strive to be professional
Sim (Routledge 2014)
but not necessarily become friends for life.
 It may seem a kindness to let the quiet
member contemplate and then come forth
with their contribution when they are ready
but it can be damaging. It may be that the team
member is quiet not because they are
considering but simply because they lack
con idence or feel they have not had
permission to speak. In a team every
member's contribution adds a value.
 In executive coaching, senior managers
work with professional behavioral coaches to
assist them to see clearly things they do that
are effective as well as those that are
ineffective.
 Turning work experience into development
and learning opportunities will be a lifelong
occupation for most people in active work and
will last throughout their careers.
 Skill without knowledge is vacuous.
Knowledge without skill is powerless. A
combination of the two may well combine the
bene its of both and encourage managers to
continue in their search for best practice in
managing their people at work more
effectively.

Book Review Shatabdi Das*
Insanely Simple : The Obsession that drives Apple's

Success
Ken Segall, (2012, Penguin Books, USA)
(*Research Associate, ITM Business School, Navi Mumbai)

Ken Segall worked as an ad agency Creative director for NeXT
and Apple. He was responsible for that little 'i' that's a part of
Apple's most popular product, namely iMac. Segall has also
served as a Creative Director for IBM, Intell, Dell and BMW.
This amazingly well-written book talks about For a concept that's supposed to be obvious,
the sole factor behind Apple's success, that is Simplicity can be dif icult to describe in word.
Simplicity. Ken mentions that leadership, Simplicity is the love child of two of the most
vision, talent, imagination, and incredible hard powerful forces in business: brains and
work may have just a bit to do with Apple's common sense. Since most people are endowed
success, but it's Simplicity that's burned deep with both, we would think that simplicity would
into the company's DNA, and serves as a guide rule the world. But unfortunately, that's not
for legions of employees around the world. It happening. Over years of meeting with Steve
seems, for Steve Jobs, Simplicity was a religion. and his marketing team, Ken Segall penned
The obsession with Simplicity is what down notes when something memorable
separates Apple from other technology happened or a key decision was made. That's
companies across the globe. It is because of how Ken Segall emerged with ten core elements
Steve Job's uncompromising ways, we can see of Simplicity.
Simplicity in everything Apple does, the way it First Element is Think Brutal – Brutal does
is structured, the way it innovates and the way not mean to be harsh or cruel, but just being
it speaks to its customers. Inside Apple, honest, irrespective of the opinion being
Simplicity is a goal, a work style, and a positive or negative.
measuring stick. So, all of this leads to a very Think Small – Steve Jobs always believed that
good question: When Apple can bene it so small groups of smart people deliver better
much from adapting Simplicity, then why results, higher ef iciency, and improved morale.
aren't other technology companies simply Think Minimal – Being minimal means, to
imitating apple's methods to achieve the same concentrate or to focus on a single task at one
level of success? The answer is: it isn't that time. Be careful if you are trying to communicate
simple. Simplicity is not merely a layer that can more than one thing at one time, because you
be grafted onto a business, it is de initely not are splintering the attention of those whom you
available in a pre-packaged version, it doesn't are talking to, whether they are your customers
work with an on/off switch. Yet absolutely, or colleagues. But still, if you want to deliver
anyone can take advantage of it, only if they multiple messages at one time, then ind a
have the determination and knowledge. common theme that unites them all, and try to
push hard on the idea.

Book Review
Think Motion – Which means to keep Sometimes, we just have to think beyond
things in motion at all times. With too much numbers and targets, and connect with
time in the schedule, you are just inviting human beings with a human voice. Just bear in
more troubles and more opportunities to mind, no target is more important than the
have your ideas nibbled to death. To explain human being, because human beings are the
this, the author has given an example between most precious assets of any organization in
the work style of Apple and Dell on Pg No. 75. this world.
Think Iconic – Ken Segall believes that an Think Skeptic – Ken Segall believes that
iconic image plays a vital role in creating a one should always be ready to face negative
good impression in the eyes of the public. He outcomes from people. He says it is not always
says, that whatever products you sell, or feasible to try and please everyone around us.
whomever you are trying to convince, never We should not get disheartened or de-
forget the power of an image that can motivated if our work is criticized or not being
galvanize your audience. Actually, it is very appreciated. We have to keep pushing
simple, you just have to ind a conceptual ourselves, until and unless we achieve our
image that captures the essence of your idea. goals and mission.
So, over the period of time, the conceptual Think War – The author says that in
image gives people an easy way to identify extreme situations we have to take extreme
your company, or idea or your product. (Pg measures. We have to relentlessly keep trying
No. 87,88 illustrates the idea more precisely.) hard, and not pull back from any situation.
Think Phrasal – This is an area where just That is we have to prepare ourselves to think
about every business needs more work. at war in dif icult and demanding situations.
Words are powerful, but more words are just
confusing. The best way to make yourself or I believe that the author has done complete
your company look smart is to express an idea justice in writing this fantabulous book and
simply and with more clarity. In simple dedicating the same to Steve Jobs, who
words, it means, to use minimal words but happened to pass away, just before the release
powerful words, so that people can naturally of the book. The book has too many amazing
associate with your product and your things to learn, which we can apply in our
company. personal and professional lives, to make our
Think Casual – The author says, to do as life much more simpler and easier, rather than
Steve Jobs did, which is to operate in a small, just complicating situations all the time. I
less hierarchical company, which tends to would advise the youth and the audience in
break the barriers between people, so that general to read this book, to understand the
they work closely together, so that there is no importance of simplicity and to learn to adopt
animosity between different grades of simplicity in one's life.
people, which increases their productivity. In
this case, people don't present to each other
but converse with each other, which builds
strong inter-organization relations.
Think Human – This is perhaps one of the
greatest and most important learning from
Apple, which is just Being Human.

CALL FOR PAPERS Finance Track: Dr. Bansi Sawhney, The Harry Y.
Wright Distinguished Research
INTERNATIONAL CONFERENCE ON ECONOMIC Professor of Economics, and Editor, Indian Journal
AND BUSINESS ISSUES of Economics and Business, Merrick School of
Business, University of Baltimore, 1420 N. Charles
December 18 and 19, 2014 St., Baltimore, MD 21201.
Denver, Colorado, USA Phone: 410-837-5049 (Of ice) e-mail:
bsawhney@ubalt.edu.
Editors of IJEB (www.ijeb.com) are happy to
announce the next meeting in Denver, Management Track: Dr. Rajendra Khandekar,
Colorado. Professor of Management, Metropolitan Satte
University of Denver and Online Editor, IJEB,
Venue: Springhill Marriott Hotel, MSU-Denver Campus Box 78, P. O. Box 173362, Denver, CO
campus, downtown Denver. 80217-3362.
Phone : 303-556 -3242
Paper or abstract submission: Deadline: July
31, 2014, but early submissions are encouraged.
Full paper submission and registration deadline: Papers should follow the standard format for
October 31, 2014. presentation consideration. Only those papers that
are selected for the publication (after the
Electronic submissions may be emailed to conference) should follow guidelines listed on the
kulkarnk@msudenver.edu, and /or to any other journal website at www.ijeb.com.
Track Chairs listed below:
Please send registration fees and inquiries to:
Economics Track: Dr. Kishore G. Kulkarni,
D i s t i n g u i s h e d P ro f e s s o r o f E c o n o m i c s , Dr. Kishore G. Kulkarni.
Metropolitan State University of Denver, P. O. Box Distinguished Professor of Economics and Editor,
173362, Campus Box 77, Denver, CO 80217-3362. Indian Journal of Economics and Business, (visit
Phone: 303-556-2675, E-mail: www.ijeb.com),
kulkarnk@msudenver.edu Campus Box 77, P. O. Box 173362
Metropolitan State University of Denver
Operations, Supply Chain and Information Denver, CO 80217-3362, USA.
Systems Management Track: Dr. Vinod Lall, Tel: 303-556-2675. Fax: 303-556-3966
Professor of Operations and Supply Chain
Management, School of Business, Minnesota State Participants are expected to make their own travel
University-Moorhead, Moorhead, MN 56563. and living arrangements. A block of rooms is
Phone: (218) 477-4648 (Of ice), (701) 388-9604 reserved at the Spring ield Marriott Hotel,
(Mobile) e-mail: lall@mnstate.edu Downtown Denver.
Marketing Track: Dr. Ruth Lumb, Professor of Conference Registration fee: US $300.00. It
Marketing, School of Business, Minnesota State includes cost of two luncheons and receptions on
University-Moorhead, Moorhead, MN 56563. December 18th and 19th, 2014. For students and
Phone: (218) 477 -4652 (Of ice) e-mail: participants from developing countries US
lumb@mnstate.edu $100.00
.
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Vol. VIII.

Issue 2 ISSN - 0974 - 3928 July 2014

Indira Management Review

Research and Academic Measurement of Productive Efciency

Banking Industry in India :

The Impact of Time on The Role Conict of Women

Study on Recovery Performance and NPAs of

Book Review Managing People at Work

Insanely Simple : The Obsession That Drives

Indira Group of Institutes

Patron : Dr. Tarita Shankar

Advisors : Prof. Chetan Wakalkar

Prof. Bijoy S Guha

Dr. Renu Bhargava

Editor : Prof. P G Vijairaghavan

Indira School of Business Studies (ISBS)

Owned and Published by

Indira Group of Institutes

Indira Management Review

Research and Academic Measurement of Produc ve Eﬃciency 04

An appraisal of Security Investments by Indian 16

Banking Industry in India – 35

The Impact of Time on The Role Conﬂict of 43

Study on Recovery Performance and NPAs of 54

Book Review Managing People at Work 61

Insanely Simple : The Obsession That Drives 66

02 Indira Management Review - July 2014

Indira Management Review

Indira Management Review - July 2014 03

(* Professor in Economics , Avinashilingam Institute for Homescience and Higher

normalised by applying Gross Domestic error in Y or minoromitted variables. The

Net Value Added 2.2454 0.2395 2.00 2.67 10.67

Invested Capital 2.1152 0.1417 1.99 2.40 6.70

Number of 2.0393 0.0743 1.97 2.18 3.64

Source: calculations are based on ASI Data

06 Indira Management Review - July 2014

Maximum Likelihood estimated of stochastic frontier production function –

Source : Calculations are based on ASI Data

Source: calculations are based on ASI data

Average technical inef iciency score=1-average ef iciency/ average ef iciency

08 Indira Management Review - July 2014

Source: calculations are based on ASI Data

Indira Management Review - July 2014 09

Source: Calculations are based on ASI Data

10 Indira Management Review - July 2014

Source: calculations are based on ASI data

Indira Management Review - July 2014 11

Source: calculations are based on ASI Data

12 Indira Management Review - July 2014

Table-8 below gives details on maximum likelihood estimates of aggregate industries.

Maximum Likelihood Estimates of Stochastic frontier

Production function – Aggregate industries

Source: calculations are based on ASI Data

Indira Management Review - July 2014 13

Source: calculations are based on ASI data

14 Indira Management Review - July 2014

Conclusion Cultural Change, Vol. 50, No. 2, Pp. 395-425.

Indira Management Review - July 2014 15

(A comparative analysis of public sector & private sector investors)