IIPM Admission 2010

Monday, January 18, 2010

Out of the Mandir; Into your Living Rooms

Meet NRI, Dr. Ravi Krishnamurthy, a Program Manager in Nanotechnology Victoria Ltd., of Australia. Dr Ravi recently donated a cottage in memory of his (late) father at Tirupati. But because his hectic schedule really did not allow for a trip to India at the time, he simply used the more convenient e-Donation option on Tirumala Tirupati Devasthanam’s (TTD) website. “The e-Donation option makes the distance from Tirumala for people like us irrelevant,” he told 4Ps B&M.

Varaprasad Pakanati, Associate Manager, GMR group, Bangalore is another happy customer… oops devotee of the e-Seva facility provided by TTD! While his family pays regular visit to Tirumala, Pakanati himself could not take out time for the pilgrimage. “Being in the team of higher echelons at office, my schedules are hectic and time-management during the visits to Tirumala used to become difficult,” he told 4Ps B&M. But that was before e-Sewa came to his rescue. The web based interface allows pilgrims (like Pakanati) to book for various services, minimum three days and maximum 90 days in advance. “That has greatly reduced my toil,” says a visibly happier Pakanati.

In as much, the digital age seems to have given a new lease of life to these iconic temples of religion. D. K. Adikesavulu Naidu, Chairman, TTD told 4Ps B&M, “Devotees can even book the e-Seva and e-Accommodation at Tirumala through the Internet.” To ensure security, the veracity of the identity cards, scanned and submitted via the Internet, are physically verified at the security office at the time of the personal visit.

Seeing the potential and growing number of NRIs and RIs eager to make digital connect with their gods, a rash of fly-by-night operators have rushed in to gate-crash this ‘divine’ party. Talking about online pujas offered by private sites, TTD’s new Executive Officer, I. Y. R. Krishna Rao laments, “Yes! Some private organisations are collecting fees for the on-line puja at Tirupati. It is ridiculous as there’s no way that they are eligible to do so.”

Not that Lord Vekateshwara of Tirupati needed the support of his virtual devotees to retain the honour of the world’s richest god. The lion’s share of the income of the TTD is derived from the sacred ‘Hundi’ – the place where the visiting devotees deposit their offerings in fulfilment of their vows. The bulk of the TTD’s income, Rs.3.43 billion in 2003-04, Rs.3.49 billion in 2004-05, Rs.3.82 billion in 2005-06, Rs.4.81 billion in 2006-07, Rs.6.08 billion in 2007- 08 has now soared to a whopping Rs.8 billion per annum and is derived from these offerings. The collection from the temple hundi at present is not less than Rs.1 crore a day. In fact, it is not uncommon to find huge individual offerings ranging from Rs.50 lakh to Rs.1 crore dropped into the hundi, with rich devotees making spectacular offerings to the Lord. On a single day (May 30, 2009) for instance, the temple’s ‘hundi’ received a record Rs.2 crore worth of donations in cash and jewellery!

And while TTD’s financials are not public and there’s hardly any information about how these funds are used, with that much quick money in their coffers, small surprise that there is a visible enhancement, both in terms of facilities for the devotees as well as TTD’s marketing budgets. There’s in fact even a flourishing audio and video cassettes, compact discs and publications business that is booming alongside, including a religious monthly magazine, Sapthagiri, which is being sold across the country in five languages viz. Telugu, Tamil, Kannada, Hindi and English.

The Siddhivinayak temple in Mumbai – that receives around Rs.45 crore as donation annually – is another big revenue earner. Talking to 4Ps B&M, Subhash Mayekar, President of the Sree Siddhivinayak Trust says, “About 40% of our total donation is used for poor people and development.” The temple premises, set in the heart of India’s financial capital, plays host to around 25,000 visitors everyday, while thousands visit the temple via virtual channel. Marketing is now acquiring bigger proportions in the temples annual budget. “We are building waiting halls – five storey buildings equipped with a library – which can accommodate 5,000 devotees,” adds Mayekar. Having roped in TATA SKY as their marketing partner, the temple has recently also ventured into mobile marketing as another way to attract customers (read: devotees) into its arms. The temple has even gone ahead to release a movie based on the deity titled Vighnaharta Shree Siddhivinayak. Marketed by Vistaas Media and Eros International, the producers have been able to rope in Master Blaster Sachin Tendulkar, Divya Dutta and Parmeet Sethi for the movie.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Monday, January 11, 2010

GURU SPEAK - “Indian banks just can’t enter the US or any market without proper standards in place”

Bimal Jalan, former Governor of RBI, and currently member of Rajya Sabha, in a free wheeling conversation with 4Ps B&M’s deepak ranjan patra, shares his view on the course of Indian banks. How is the current economy impacting the Indian banks and what was it that helped them show good performance, even during the slowdown. As a banker who has always kept a close watch on the exchange rates, he speaks about the opportunities present in the domestic market and what is it that Indian banks should keep in mind before going global. Excerpts:

4Ps B&M: Do you think that this is the right time for Indian banks to expand their global muscle?
BJ:
It depends. Some are going global anyway. But then, that is to be done with a long term perspective. If they are doing so, they must follow sound banking norms. The Indian banks just can’t enter the US or any other market without proper standards in place. The banks, which are going abroad, need to be careful.

4Ps B&M: Do you mean they should be careful in making global acquisitions?
BJ:
It is not fair to generalise. There are big as well as small banks. So, it’s a mixed experience. However, this is more of a bank’s management decision. But as far as policy is concerned, there is no negative view of the banks, which want to expand abroad. But there are two parameters, which need to be followed (in case of going global), first, the bank has to be strong in India and second, it must follow the regulatory system of India, so that the main company remains totally safe and sound.

4Ps B&M: Where do you think the opportunity lies for Indian banks now?
BJ:
It is within India itself. As such the banking sector in India is not fully developed. The number of banks (and branches) are much less than what they actually should be. There is ample opportunity in the rural areas, which has not been properly tapped till now. So, it is the large size of the untapped Indian market, which provides tremendous opportunity for the banks.
4Ps B&M: What has been the impact of the global slowdown on Indian banks?
BJ:
The Indian banking industry has come out really well. Not only has the Indian banking industry come up stronger after the recent slowdown in the economy, but has also shown good growth figures. In fact, it’s the careful approach that has worked in favour of Indian banks. Moreover, RBI’s strict policy stance has provided banks the much needed safe haven against the slowdown.

4Ps B&M: While India Inc. is talking about a slowdown in the economy, the recent quarterly results are showing a sign of recovery. What does this mean for Indian banks?
BJ:
First, let’s talk about the economy. The signs are absolutely positive. Whether it’s 5.5% or 6.5%, we still are showing the second highest growth rate in the world. Therefore, the recovery is also coming faster. This means good news for the banks as well.

4Ps B&M: Do you see any particular concern, which should be taken care of by the government?
BJ:
No, there are no concerns. But yes, there are priorities that should be noted and kept in mind. Since the trouble is worldwide, what should be controlled is the cost of borrowing funds. The lower the cost, the better it is.

4Ps B&M: Given the present economic conditions, is there a scope for further rate cuts by the central bank?
BJ:
Definitely. The demand is high and it needs more push. The difference between RBI’s main rates like the repo rates, reverse repo rates, BPLR, SLR is still very high. So yes, there is still scope for further rate cuts.

4Ps B&M: But, even if the RBI reduces the key rates, many times banks do not pass it on to consumers. Comment.
BJ:
The RBI is the lender of last resort. There has been a lot of misunderstanding about RBI’s rate cuts. The rate cuts done by RBI are actually symbolic in nature. Banks don’t depend on the RBI rates for financing their business. The main ingredient in determining the bank rates is their own deposit rates. They have come down, but are still higher than the RBI rates.

4Ps B&M: If you are asked about one significant requirement in the Indian banking industry that you want the regulator to address...
BJ:
There are two different things that need to be addressed. The first one is that the Indian banking system should be aware of the international system of doing things and should be prepared to face any kind of requirement set by that. The second one is that Capital Adequacy Ratio matter should be addressed in such a way, that the risk-averse nature of Indian banks remains intact. So, it’s like providing growth opportunity along with increasing the systematic risk taking ability. It’s a delicate issue, which needs proper supervision.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
1 lakh copies sold in less than 10 days of Arindam Chaudhuri’s “Discover The Diamond In you”
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Events at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
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