Department of Business Administration
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Item RECESSION IN INDIAN BANKING SECTOR(Urban Economics & Regional Studies -E-Journal, 2009-11) Vidyakala K; Madhuvanthi S; Poornima SBanks act as important players in the financial markets. They play a vital role in the economy of a country. The Recession that began in December 2007 impacted the revenues and profitability of businesses worldwide. We are in a globalised world and no more immune to the things happening outside our country. Built on strong financial fundamentals, strict vigil on risk appetite and firm monetary guidelines, Indian banks have proved among the most resilient and sound banking institutions in the world. But there has been considerable divergence in the performance of the various banking institutions in the country as also among the public, private and foreign banks operating in India. The Indian banking system is relatively insulated from the factors leading to the turmoil in the global banking industry. Going by the performance for the calendar year 2008, Indian public sector banks have not only been able to weather the storm of global recession but have been able to moderate its impact on the Indian economy as well, compared to its peers among the foreign and private banks. The banking sector faces profitability pressures due to higher funding costs, mark-to-market requirements on investment portfolios, and asset quality pressures due to a slowing economy. But Indian banks’ global exposure is relatively small, with international assets at about 6 per cent of the total assets. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil.Item RECESSION IN INDIAN RETAIL INDUSTRY(Urban Economics & Regional Studies -E-Journal, 2009-11) Vidyakala K; Madhuvanthi S; Poornima SIndia is the fifth largest retail destination globally. The retail market in India is facing slowdown with the ongoing financial crisis happening across the world markets. Since the markets always have internally linked with each other, the impact of the crisis is generally shared among all. The high level of inflation has been a wet blanket for the global markets. With the suddenly disturbed economical status, consumers are gradually losing interest on buying. India's retail sales growth fell sharply to 11 per cent in December 2008 from 34 per cent in the like period of 2007, according to a study by global consultancy firm KPMG.. Slowing sales resulting in lower inventory turnover and increasing working capital requirements to fuel growth have resulted in liquidity pressures for many domestic retailers. Factors like store rationalization, working capital management, regionalization, cost optimization and manpower resizing are some of the key "top of mind" issues for the retailers in the current context. This evolution had soon disappointed the hopes of retail industry. Even with the weight of America's mighty Wal-Mart Stores behind it, Bharti Enterprises is scaling back. Pantaloon Retail, India's largest merchant, run by Kishore Biyani, the boldest opportunist in the business, is seeing a severe setback. Eight months ago, Reliance restructured operations, shut around 20 Fresh stores, and laid off 13% of its 30,000 people. Worst hit is India's largest discount retailer, Subhiksha. The Chennai retail chain had expanded tenfold, to 1,655 outlets, in four years, funding its expansion largely by debt. It said a demand contraction following a slowdown in the domestic economy has impacted the sales of retailers; and urged the government to increase spending on infrastructure and other development initiatives