m The banks must participate and provide required working

capital to the sick units.

m Viability of the units is established in consultation with the

Bank/Appraisal agency.

m In case of limited company net worth means the sum total of

paid up capital and free reserves.

m In case of partnership firm it means the sum total of partners

capital and free reserves.
m ienovation of infrastructure

m Clusterization

m Marketing services

m Quality Testing services and Human resource

m Exemption in stamp duty and reduction of registration charges

Fiscal and non fiscal measures under consideration are as:
m Most of the surplus lands to be allowed to be sold/mortgaged.

m Labour department should undertake to settle labour disputes.

m Interest subsidy up to 5% to be given to each unit on working

capital.

m The government Central/State should create an implementing

agency for drawing up a mechanism enlisting the services of
all concerned in the rehabilitation package.
actors to be examined in project validation are:

m Life of the machinery

m State of the product life cycle

m Waiver of penalties and penal provision of law should be

followed.
—lassification of NPA¶s:
m Standard Asset
m Substandard Asset
m Doubtful Asset
m Loss Asset

Interest income received by the banks on NPA can be classified

as:
m Accrued
m iecovered or realized
m The process of taking many individual assets and combining
them into a pool , so that investors may buy interests in the
pool rather than in the individual assets.

m Most common assets are retail customers loan, student loans,

auto loans, corporate debt, SME loans, export receivables.
m Central govt. may appoint a person for the purpose of
registration of transactions relating to securitization, known as
central registrar.

m Central register shall be kept at head office of central registry

for entering the transactions:
Securitization of financial assets.
ieconstruction of financial assets.
Creation of security interest.
m It shall be lawful for the central registrar to keep the records on
computer, floppies, disks and any other electronic forms
subject to safeguard the data.

m iegister shell be kept under the control and management of

central registrar.

m Whenever terms or conditions are modified, it is the duty of the

company to send particulars of such modifications to the
registrar.
m iight to inspect particulars of securitization:

The particulars of securitization entered in central

register shall be open during business hours for
inspection.

The central register maintained shall also be open

during business hours for inspection.
m MICi INANCE

m iELATI NSHIP BANKING

m IMPLEMENTATI N  BASEL 2

m WT AGiEEMENTS
SEiVICES UNDEi MICi INANCE :

m SAVINGS
m CiEDIT
m M NEY TiANSEi
m EQUITY TiANSACTI N
m INSUiANCE
m H USING AND HEALTH
m MIs deals with groups incapable of
articulation of their needs or resisting pressure.
m ICICI bank signed up micro finance
institutions as intermediaries for micro lending.
m Andra Pradesh, Karnataka and Tamilnadu
occupy the largest MI space in the country.
m State govt., NABAiD, SIDBI, PCs, NBCs
and NG s are intermediaries for micro
lending.
m SHGs promoted by NG s/Government
rganizations and financed by banks.
m SHGs promoted and financed through
NG s by raising bank loans.
m Individuals directly financed by MIs
m The Urban Co-operative Banking Model
m SHGs promoted and financed by
MIs(Grameen ieplicator Approach)
m The Multi State Co-operative Solidarity group
model.
m The NBC approach
m The federated SHG approach
m Bank linkage Programme launched by
NABAiD in 1991-92 and through the support
of SIDBI to MIs.
m SIDBI also sanctioned is. 7600mn by way of
loan assistance to MIs.
m riends of Women¶s World Banking(WWB)
and iashtriya Mahila Kosh(iMK) also
deserves credit.
m The successful banking models around the globe led the Indian
banks to embrace relationship banking and focus on customer
needs.

m —ustomer ielation Management

A comprehensive approach for creating, maintaining and
expanding customer relationships

m —iM is about the entire —ustomer — cle

m 6he four —haracteristics to services are:

Intangibility

Heterogeneity

Inseparability

Perishability
m ecision on Pricing

Cost Plus Pricing

iate of return Pricing
Competitive Parity Pricing
Loss leading Pricing
Value based Pricing
ielationship Pricing

m —hallenges In istribution Strategies and ietail Banking

m The transition to a New International Trade iegime
under WT .

m Issues
Difference in trade liberalization between the member
countries.

Conflicts within developing countries with similar

commodity baskets but different cost structure.
m 36 Framework

Agreement on textile and clothing

Agreement on Anti-Dumping Measures.

Agreement on Safeguard Measure

Agreement on Government Procurement.

Agreement on import Licensing Procedure

Agreement on subsidies and Countervailing Measures

Agreement on Technical Barriers to Trade(TBT)

Agreement on Trade ielated Investment Measures(TiIMS)

ebate centers on the following issue-

m The asymmetries of the present trading system.

m Changing economic environment.

m The role of the state in the economy

¦
 

  
m 6
 


m      


m    


m  
   6  


m    



m 



m The potential threat to domestic industry.

m The potential opportunity of global markets.

m Small industries don¶t produce exportable lots.

m Pricing the product for export poses the biggest

problem.

m Do not have laboratories at the landing points.

m New MSME Development Act ± vertical
growth & gain competitiveness.
m iaising productivity & achieving low costs.
m Promoting linkages b/w large & small
industries.
m Strategies should be build on the strengths of
the SME sector.
m Sub-contracting exchanges & franchises have
tremendous scope.
m Government can develop a database
m Take advantage of e-commerce
m Initiatives taken by states ± Single Window system
m Need for policies to be designed to deal with sub-sector-
specific problems

Sub-sectors may have a major role to play in the future:

m ready made garments
m Leather footwear
m Electronic components
m Processed food
m Automotive components
 pportunities:
m Access to global markets
m Access to better technology
m Access to greater funding through DI/Joint
venture
Challenges:
m iemoval of Quantitative restrictions
m Quality of goods
m utdated technologies
m Infrastructure