It is a great pleasure to be here again in Melbourne addressing CEDA's Annual Dinner. This is the fifth time I have done so, and it is like returning to be with old friends. I usually talk about some aspect of monetary policy, and will do so again tonight, starting with something very familiar and then moving to newer territory. When we look back to fifteen or twenty years ago, the thing about monetary policy that stands out is the lack of clarity about what it was expected to achieve. That is, what should be its ultimate objective, and therefore what should it be accountable for? This lack of clarity applied both inside the Reserve Bank and outside it. I am sure some of you are familiar with the wide variety of objectives for monetary policy that were put forward at the time. As well as the familiar aims of low inflation, low unemployment and good economic growth, there were those who felt it should also be aimed at improving the balance of payments, promoting investment or limiting the growth of credit or some other monetary aggregate. Others put forward the view that it should aim to rein in the growth of asset prices. We now recognise that there are a lot of good economic arguments against having such a wide set of aims, but I will not go into those tonight. Instead, I will say a few words about accountability and independence. A government cannot be expected to allow independence to its central bank unless that bank is also accountable to it and to the wider public. That is, the central bank must be able to be judged on whether or not it has achieved its agreed objective. When there are half a dozen objectives, this becomes impossible because there is very little chance that the optimal outcome for all these variables could be achieved at the one time. If the central bank was held accountable for failing to achieve one objective, it could always defend itself by saying that its efforts were directed at one or more of the other objectives which it viewed as more important at the time. Thus, the old system failed the test of being accountable, and hence there was a reluctance to fully recognise the independence that was essential for the ultimate success of monetary policy. It is true that the Reserve Bank …

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Monetary policy and financial stability

After getting freedom from tight chains of slavery in 1947, Indian government planned to make strengthened the Indian economy. With this view planning period started in India in 1951 and India moved to the path of progress. Various steps for progress were adopted in 50’s, 60’s, 70’s and 80’s. Some led to success whereas some got failures. The main objective of all the measures followed to achieve the economic growth and eradication of poverty. Though various reformed measures were adopted bur actual success was achieved in 1991 reforms after the adoption of liberalization initiated by then Indian Prime Minister P. V. Narasimha Rao and his finance minister Manmohan Singh. These reforms changed the market and financial scenario of the country and make India as the wealthiest economy in the world. This paper throws light on various economic reforms followed by the Indian government and their impact on Indian Economy.

Economic reforms in India

Effects of Merger and Acquisition Strategies on Performance of Commercial Banks: A Case of I&M Bank

Financial sector reforms in India

An Analytical Study on Public Leadership Styles Influencing Organizational Effectiveness of Indian Public Sector Banks: Today and Tomorrow

The purpose of the present paper is to explore various motives of merger in Indian banking industry. This includes various aspects of bank mergers. It also compares pre and post-merger financial performance of merged banks with the help of financial parameters like, Gross Profit margin, Net Profit margin, operating Profit margin, Return on Capital Employed, Return on Equity, and Debt Equity Ratio. Through literature Review it comes know that most of the work done high lightened the impact of merger and Acquisition on different companies. The data of Merger and Accusations since economic liberalization are collected for a set of various financial parameters. Independent T-test used for testing the statistical significance and this test is applied not only for ratio analysis but also effect of merger on the performance of banks. This performance being tested on the basis of two grounds i.e., Pre-merger and Post- merger. Finally the study indicates that the banks have been positively affected by the event of merger.

/pdf/the-economic-impact-of-merger-and-acquisition-on-68ufjn1wgk.pdf

The economic impact of merger and acquisition on profitability of SBI

The term demonetization is not new to the Indian economy. The highest denomination note ever printed by the Reserve Bank of India was the Rs 10,000 note in 1938 and again in 1954. But these notes were demonetized in January 1946 and again in January 1978, according to RBI data. Since less than 5 percent of population in India had access to such notes and most banks never had such currency notes, demonetization did not have a big impact on the country. The decision was taken to curb the illegal use of high denomination currency which was used for corrupt deals in the country. However, with the latest round of demonetization, the common public and bankers are undoubtedly facing hardship since more than 85 percent of currency in circulation has been rendered illegal in one single stroke. Demonetization is surely hampering the current economy and will continue to do so in the near term and will also impact India’s growth for the coming two quarters but will have positive long lasting effects. The question that arises is why demonetization was required at this point of time. There are certain pros and cons of demonetization.

https://www.allresearchjournal.com/archives/2017/vol3issue3/PartJ/3-3-95-206.pdf

Demonetization impact the Indian economy: A descriptive study

Non-performing assets had been the single largest cause of irritation of the banking sector of India. Earlier, the Narasimham Committee-I had broadly concluded that the main reason for the reduced profitability of the commercial banks in India was the priority sector lending. The committee had highlighted that 'priority sector lending' was leading to the buildup of non-performing assets of the banks and thus it recommended it to be phased out. Subsequently, the Narasimham Committee-II also highlighted the need for 'zero' non-performing assets for all Indian banks with International presence. The management of non-performing asset is crucial aspect for any banking institution. The banks cannot have sustenance unless the fund disbursed by it to the clients is recovered and recycled. The management of NPAs in Co-operative banks is a really robust challenge and cumbersome task since, the Co-operative banks are mainly based in rural areas the people and the numbers of defaulters are more. In this background a case study was taken based on the case nonperforming assets of cooperative bank. RBI has brought in a series of reforms to reduce the NPAs of Co-operative banks. On the bases of this and having main objective, a study was carried out to analyze the measures and ways to reduce NPAs in Co-operative banks of Vijayapur, District.

Banking sector reforms and non-performing assets: A study of Vijayapur district Co-operative banks

This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario. The authors have stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has be detailed discuss in this paper by the authors as the background, silent features and the impact of GST in the present tax scenario in India.Its concepts and impacts are analyzed with various aspects and techniques. Analyzing it with the help of CGE is at introduction stage and this paper assesses different literatures on it to find out CGE application in GST by examining 21 research papers of the period 1989- 2012. The major finding of the paper is that CGE is mostly used for welfare effect of GST and various aspects are still waiting to open.

https://www.allresearchjournal.com/archives/2016/vol2issue4/PartL/2-4-18.pdf

GST In India: An enrichment of indirect taxation system

Co-operatives report for a relatively small share in the bank-dominated Indian financial system; however, given their geographic and demographic outreach, they hold a key position in the system. In rural areas, as far as agricultural and related activities were concerned, the corporative banks have provided adequate short-term and long-term institutional credit at reasonable rates of interest. Cooperative banks were made an integral part of the institutional framework of community development and extension services which were assigned the important role of delivering the fruits of economic planning at the grassroot level. In this context, the present study attempted to review the functioning of Development of Cooperative banking in India. The specific objective of the study was to analyses the performance of urban cooperative bank. The study has analyzed the functioning of the bank with regard to deposit mobilization, issue of loans and advances, recovery of loans, regarding the working performance of the Bank. The data required for this study were collected through secondary sources.

https://www.allresearchjournal.com/archives/2017/vol3issue1/PartD/2-12-61-775.pdf

Jayashree R Kotnal

Papers

The economic impact of merger and acquisition on profitability of SBI

Demonetization impact the Indian economy: A descriptive study

Banking sector reforms and non-performing assets: A study of Vijayapur district Co-operative banks

GST In India: An enrichment of indirect taxation system

Rural co-operatives with Indian context: Repositioning