Abstracts from Some of the Books

Published by NIBM

1) Compendium 2005

The National Institute of Bank Management, a premier institution playing the role of a ‘think-tank’ for the banking system is engaged in research, training and consultancy. While Training endeavours to enhance professional competencies in banks and financial institutions, Research enriches training and consultancy services of the institute, and also facilitates debate in banking, academic and policy-making circles.

The research studies undertaken by the Faculty Members of the Institute are circulated as ‘Research Reports’ or ‘Working Papers’ to elicit comments from end-users. They are also presented in conferences for discussion on the various aspects of the subjects covered. Some of these research studies are published in ‘Journals’ for wider circulation.

We are releasing here a compendium of research works completed by the Faculty Members of NIBM during the period January to December 2005. This Volume consists of Papers and Articles published or submitted for publication, Conference Presentations and Working Papers.

The objective of bringing out this compendium is : (a) to influence the functioning of the financial system, and (b) to invite critique to improve the quality of the banking services.

Monograph : 2006 – demy – 450 pp – card cover

Price : Rs 450.00

2. Role of Lead Bank Officers in the Changed Context of Financial Sector Reforms

- Dr N B Shete

The Lead Bank Scheme (LBS) is one of the innovations introduced by the RBI towards the end of 1969 to provide an appropriate organizational framework to ensure increased flow of credit to the core sectors of the rural economy. The LBS has not only created awareness for better credit planning but has also resulted in better understanding of mutual problems at the grass roots level both for banks and various government departments.

LBS and the machinery created for its implementation at various levels has stabilized over the years. However, many structural and technological changes have taken place during recent periods. In the changed context of financial sector reforms, the validity of the scheme is being questioned in some quarters of the banking circle. It is pertinent to mention in this context that the last review of the Scheme was conducted by the Reserve Bank of India in 1982-83.

Given this background, the institute initiated a comprehensive review of the LBS in order to enhance the efficacy of financial intermediation to foster growth of agriculture and the rural economy in the new era of banking. The Lead Bank Officer (LBO) being the key person in the implementation of LBS, the evaluation was primarily based upon the data collected from LBOs regarding their field level experiences and observations. 330 Lead Bank Officers and 20 General Managers (PSA) of 26 Public Sector Banks responded to the questionnaires.

Views regarding the role of LBOs in the preparation, implementation and monitoring of DCPs/AAPs, organizational set-up of LBS, working of forums of coordination, the job profile of LBOs in the changed context of financial sector reforms, research, development, administrative support available and needed for performing LBO’s changed roles were elicited. In addition, their observations regarding the qualities needed for a successful LBO, the training needs and problems faced by them to ensure the efficacy of the LBS scheme in general and increasing the priority sector/agricultural advances in particular were also collected and analyzed.

The findings of the study conducted by Dr N B Shete have many policy implications for RBI, NABARD and Public Sector Banks who are directly or indirectly associated with the implementation of LBS.

This monograph was released by Dr Y V Reddy, Governor, Reserve Bank of India, on the occasion of NIBM Annual Day Celebrations on January 6, 2005 at Pune.

Monograph : 2005 – demy – xi + 301 pp – card cover

Price : 400.00

3. Analysis and Interpretation of Balance Sheets (Revised Edition)

- J D Mohile

Balance sheets are studied by different persons with different ends in view. A banker balance sheets of a business organization while considering a loan proposal. His main concern therefore is to find out, as far as he can, whether : (a) the organisation is financially sound and stable, i.e. solvent, (b) its liquidity is satisfactory, (c) its profitability or earning capacity is upto the required standard, and (d) it is well managed.

An attempt has therefore been made in this programme to indicate how the balance sheets and other financial statements can guide in forming one's judgement in respect of the above aspects of an organisation. It may however be mentioned that "analysis and interpretation of balance sheets" is only a tool for taking judicious decision on loan proposals and one must not lose sight of the other basic principles of lending while considering a loan proposal.

This book, inspired by the ILO's Programmed Text on how to read a balance sheet, was first published in 1972, and reprinted twice. This is the first revised edition incorporating all changes since then.

A complete job analysis of the procedure of screening balance sheets as prevailing in commercial banks has been done prior to revision of this text. A Post-Text to test oneself and Key to Post-Test to check whether one has learnt have been provided in the text.

Revised edition : Third Reprint : 2004 – demy – xiv + 212 pp – Card Cover

Price : Indian : Rs 200.00 Foreign : US $ 12.00

4. Bankers' Credit Decisions (Reprint Edition : 2005)

- Sampat P Singh

The book is made up of two parts. Part one contains six chapters dealing with Credit Decisions, Working Capital Management, Norms of Lending, Loans versus Cash Credit System, Tools for Financial Analysis and the Case Method. These concepts have to be understood and then applied in the analysis of the cases. Part two is comprised of ten cases. The first nine cases are built around three types of conflicts : Bankers' interest versus borrowers' interest; credit need versus credit risk; and the business mode versus the bureaucratic mode. The last case is focussed on loan pricing and decision based on customer profitability analysis.

Financial analysis has oftentimes been viewed as an alternate to judgement and pragmatism. Bankers' decision has also been mistaken as a binary choice between yes and no resulting in the neglect of behavioural aspect of the decision process. This book attempts a more balanced approach. With improved educational profile of new generation bankers, growth of foreign and private sector banks, and greater autonomy to public sector banks, it is hoped that a more balanced and more efficient approach to credit decision will be adopted by the banks. This book provides the necessary academic support.

Second Reprint : 2005 – demy – xiii + 237 pp – card cover

Price : Indian : Rs 225.00 Foreign : US $ 13.00

5. Financing of Agri-Business -A Technical Manual

- Dr N B Shete

India is blessed with diverse agro-climatic conditions which are conducive to grow different crops round the year. No other country grows such a wide range of foodgrains, plantation crops, fruits, vegetables, flowers, etc., in such abundance as India. Because of our strength in agricultural sector, India can easily wrest a commanding position in developing and extending worldwide benefits of bio-technological software comprising highly promising and at the same time, relatively inexpensive vermiculture, bio-fertilizers, bio-pesticides, tissue cultured propagated plants of fruits, vegetables, flowers, etc.

With liberalisation, Indian agriculture has made forays into commercial and hi-tech agriculture, high-value crops, etc., both for domestic and export markets, which require higher amount of credit. A large number of corporate borrowers, technocrats, new generation entrepreneurs, etc., are venturing into this arena on a large scale. On the other hand, there is a need for systematic diversification of the lending activities of the banks and financial institutions in the priority sector. The credit policy pursued during the post-reform period has lent momentum to the agricultural sector, particularly for a fuller exploitation of the potential of bio-technology.

For banks and financial institutions, agri-business is a promising sector growing at 25 per cent per annum. The agri-business ventures require specific finance allocation as the credit flow to this sector needs to be strengthened. Commercial banks can take advantage by establishing permanent technical and scientific advisory groups to deal broadly with the goal of financing agri-business projects as new areas are emerging every day.

This manual is concerned with the technical aspects of some of the agri-business projects, covering bio-technology, tissue culture, floriculture, mushroom cultivation, aquaculture, greenhouse cultivation, horticulture and agro-processing and is intended to add to the bankers' knowledge and experiences in financing some of the more viable projects.

Second Reprint : 2003 – royal octavo – xx + 450 pp – card cover

Price : Indian : Rs 400.00 Foreign : US $ 25.00

6. Human Resource Management in Banks

- Dr Jacob Mankidy

Second Reprint : 2000 – royal octavo – xii + 122 pp – card cover

Price : Indian : Rs 150.00 Foreign : US $ 10.00

7. Bancassurance in India
Editors : S M Padwal (NIBM) & R K Parchure (NIA)

Even though Banks and Insurance companies in India are yet to exchange their wedding rings, bancassurance as a means of distribution of Insurance Products is already in force in some form or the other. In a country of one billion people, the sky is the limit for insurance and bank products – particularly for the life insurance products. The Indian middle market segment is the second largest in the world after China. The insurance companies worldwide are eyeing the situation, hence, why should we Indians not pre-empt their move by venturing into it ourselves. Our strength lies in a vast pool of skilled professionals both in Banks and Insurance companies.

The euphoria amongst bankers to enter into the insurance business stems from the notion that today it looks highly profitable. Faced with the twin facts of declining profitability, increasing risk and the need for bank managements to diversify into more profitable lines of business, insurance appears to be a potential avenue with a bright horizon just over the hill. Yes, banks may venture into and be successful at it, provided knowledge, skills and personnel are geared to make bancassurance a service for which the customers feel the need, the want and have the assurance of personal attention. It can lead to the creation of a 'one-stop-shop' where customers can avail a variety of insurance products.

Discovery comes from looking at the same thing as everyone else does, but seeing something different. Banks' desire to increase fee-income has them looking at insurance. Insurance carriers and banks can become part of the vision through strategic partnership. Now is the time to position your company for the new millennium of Bancassurance.

2000 – royal octavo – ix + 166 pp – card cover

Price : Indian : Rs 250.00 Foreign : US $ 15.00

Year of Publication

2006

Compendium of Published Papers & Articles, Conference Presentations and Working Papers : 2005

NIBM Faculty (Monograph : Rs .450.00)

2005

Bankers’ Credit Decisions : Concepts and Cases

Sampat P Singh (Second Reprint : Rs 225.00 US $ 13.00)

Compendium of Published Papers & Articles, Conference Presentations, Research Reports and Working Papers : 2004

NIBM Faculty (Monograph : Rs .350.00)

Role of Lead Bank Officers in the Changed Context of Financial Sector Reforms

N B Shete (Monograph : Rs 400.00)

Women and Banking

K Dinker Rao, R Dasgupta & K U Umakrishnan (Monograph : Rs 75.00)

2004

Analysis and Interpretation of Balance Sheets

J D Mohile (Revised edition : Third Reprint : Rs 200.00 US $ 12.00)

Management of NPAs in Priority Sector Credit of Banks

N B Shete (Monograph : Rs 100.00)

2003

Exemplary Implementation of Citizen’s Charter in Punjab National Bank, Oriental Bank of Commerce and Punjab & Sind Bank

Kalyan Swarup & A U Gadewar (Rs 150.00)

Preparation of An Index of Services Production

Tarun Das, Rajaram Dasgupta, Rohit Kumar Parmar & Asish Saha, eds (Rs 350.00)

Recovery Measures

V S Kaveri (Monograph : Rs 50.00)

2002

Analysis and Interpretation of Balance Sheets

J D Mohile (Revised edition : Second Reprint : Rs 200.00 US $ 12.00)

Innovative Approach of Oriental Bank Commerce to Microfinance

K Dinker Rao, R Dasgupta & D P Khankhoje (Rs 200.00 US $ 12.00)

Microfinance is being practised world over to combat the menace of poverty. However, there are numerous variants of microfinance prevalent in different countries, and within India too it has been applied in various forms. Though differing in modalities, the basic premise and ultimate aim is to offer financial services to the poor who are unorganized, neglected by the financial sector and are perceived to be unbankable. Self-Help Groups have been conceived and adopted by banks in India as outlets for Microfinance. In this endeavour NABARD has been a ‘Pioneer’. Emboldened by the success of linking SHGs with various financial institutions in India and other developing countries, when all other banks were trying to follow "NABARD" model `Oriental Bank of Commerce' (OBC) adopted Grameen Model of Bangladesh which is quite distinct from SHG model although serving the same purpose and the same target group. OBC evolved ‘Oriental Bank Grameen Project’ (OBGP) with the objective of providing banking at the doorsteps of the poor, inculcating the habit of thrift, providing uninterrupted credit in multiple doses without any subsidy and enabling the poor – especially the rural women – to manage their own financial and social affairs independently.

In this monograph, the NIBM’s Development Banking group makes its objective and detailed observations on the functioning and impact of the OBC Grameen Project and also compares it with the routine rural banking of OBC.

The economic progress of OBGP borrowers and the positive social impact of the project exemplifies that there is enormous scope for various financial institutions to participate in the endeavour of poverty alleviation and at the same time have a share of the pie.

The Contents

o Executive Summary

o Introduction

o OBC’s Business Profile and Priority Sector Credit

o Origin and Progress of Oriental Bank Grameen Project

o Impact

o OBGP and OBC Clients

o Viability, Sustainability and Efficiency

o Microfinance Issues

(2002–octavo–xvi + 170 pp, card cover)

Taking Banking To The People : NIBM’s Role

K Dinker Rao (Rs 300.00 US $ 15.00)

In their endeavour to alleviate poverty, the Government of India and the Reserve Bank of India have been announcing and directing various schemes over the years since independence, and especially since post-bank nationalization period.

Under social control of banks, mandatory credit to priority sector, generally related to rural areas, and a part of it especially to weaker sections, was imposed on commercial banks. Further, in 1975 regional rural banks were established. In 1981 the world’s largest credit-linked poverty alleviation programme – IRDP – was launched. Recently IRDP and its allied schemes have been merged into Swaranjayanti Gram Swarozgar Yojana (SGSY).

All these measures were and are intended to provide to the weaker sections of rural areas access to mainstream economy through bank credit via self-help.

The NIBM with its mission of training, research and consultancy was set up in 1969 as a premier academic institution. But unlike many other academic organizations, NIBM is not insulated from reality. With its close links to the banking industry, it collaborates with the banks in exploring, experimenting, and experiencing the rural India, and has been the inspiration for implementing by the banks the various Action Research Projects, viz. (a) Farmers’ Service Societies (FSS), (b) Development of Women and Children in Rural Areas (DWCRA), (c) Service Area Approach (SAA), (d) Planning for Development of Villages (PDV), and (e) Maharashtra Rural Credit Project (MRCP).

Thanks to the constant efforts of the banking industry to the continuous prompting of NIBM, it was possible for the Indian economy to graduate to a high-saving economy. Viewed against this macro-economic perspective, the period 1970-2000 constitutes a glorious chapter in the history of Indian microcredit banking.

This book captures the agonies and ecstacis of all those concerned in this endeavour.

In the Foreward of the book Dr N A Mujumdar, Former Principal Advisor, Reserve Bank of India, Mumbai says that "Since the book captures the flavour of the kind of commitment that public sector bankers had to the goals set out for them, it would be useful to provide this book as a background reading material in all banks' training colleges."

2000

Bankers’ Credit Decisions : Concepts and Cases

Sampat P Singh (First Reprint : Rs 225.00 US $ 13.00)

Human Resource Management in Banks : Contemporary Issues

Jacob Mankidy (First Reprint : Rs 150.00 US $ 10.00)

For Further Inquiries, Write to :

Publications Officer

National Institute of Bank Management

NIBM Post Office, Kondhwe Khurd, Pune 411 048

Phone : 91-020-26833080–87

Fax : 91-020-26834478
E-mail : Publications Officer

Detailed Index of NIBM Publications – Click Here