#SRaviChairman

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Globe Today is Facing a Pandemic Situation Describes S Ravi Bse (Sethurathnam Former Chairman)

The globe today is facing a pandemic situation and India has not remained untouched by its negative influence. In fact, as per the S Ravi BSE Chairman Mr. Sethurathnam Ravi, India is the most disruptive considering the economic situation and human lives loss. Nearly every sector has been adversely affected during this period. The reason behind this adverse effect as per S. Ravi was the domestic demand and the supply or exports that sharply dropped with noteworthy exceptions.

An effort was also made for analyzing the effect and the possible solutions for particular essential key sectors. Among all Aviation, hospitality, and tourism were the most affected sectors which faced the maximum burden of the crisis. As per the reports of UNCTAD, the trade of India faced a loss of around USD 348 million due to Covid-19. This came up with an adverse impact on the production, as well as the inventory available. The loss of the pharmaceutical industry is also essential as China exports around 70% of the APIs to India. These APIs are essential for the manufacturing companies who are producing various medications in the country which leads to a huge loss and financial erosion.

Similar to the health sector as mentioned by S. Ravi, the banks have also faced a contrary situation for responding to an impulsive situation. Along with these sectoral impacts, demolishing buyer and business opinion can lead firms to expect lower interest, ascend in business cost and diminish their spending and speculation. A similar will affect all installments including those for representatives, interest, advance reimbursements, and expenses. Thus, the equivalent would fuel business terminations and employment misfortunes.

Let’s check on some of the critically affected sectors as listed by the S Ravi BSE Chairman.

Real Estate

The real estate and construction sector started facing disruption as during the pandemic situation a huge number of migrant workers left for their villages. This lead to a lack of required laborers for both construction and housing projects in the states and urban areas. As a result, a delay in the completion of projects was observed. As per S. Ravi, the labor unions have confirmed that more than 2 lakh migrant laborers left Delhi NCR during the lockdown and returned to their hometowns every day. This means the construction sites were working with even less than 50% workers along with other disturbing situations like shortage of raw material, and much more. Even currently the sector remains troubled resulting in several pending projects.

Aviation and Tourism

Tourism and Aviation contribute around 9.2% and 2.4% respectively to the GDP of India. Both the industries were the first to get affected significantly by the lockdown due to Covid-19. As per the reports, the pandemic situation has obstructed these industries more than the situation that arrived during the Financial Crisis in 2008 and 9/11. The industries have faced issues with cash flow from the very beginning of the pandemic. Also, due to the situation, nearly 38 million people lost their jobs which counts for almost 70% of the workforce including both Blue and White-collar jobs. As estimated by IATO, the industries would have suffered a loss of around 85 million Rupees or even more due to the traveling restrictions. Counting on the plus points, various innovative changes are implemented for contactless boarding traveling technology.

Automobile

Next on the list is the automobile industry. The automobile industry is again under pressure as due to the pandemic the sales have drastically fallen. India imports around 27% of the automobile parts from China, and due to Covid-19, the delay in the import has resulted in deferrals in the production of vehicles and their delivery. The increase in the estimated loss has forced various manufacturers to temporarily close their companies. As per the suggestion of the BSE Chairman, waiving the interest for a fixed period might be helpful to the manufacturers to a great extent. Again, subsidizing the market for manufacturing OEM or electric vehicles and components would help in managing the loss as well as the demand of the public as this would also reduce the consumption of petrol.

Apart from all these, other sectors that are affected tragically include the shipping industry, food and agriculture, electronics, hospitality industry, banking, financial industry, and many more. Hence, the economic crisis prevailing currently needs the implementation of particular effective policies in an instant manner. The government needs to primarily focus on reducing the impact of Covid-19 by serving with quick resolution of pending cases and screening awareness. This would help in restricting the chain of the outbreak and the sectors would be in action again which would vastly boost the economic activities.

[livewellnews]

Why S Ravi former BSE chairman suggests investors to be more vigilant

The BSE Chairman, Sethurathnam Ravi greatly believes in the fact that all the potential investors should be vigilant enough to tackle any upcoming problems. Vigilance should be carefully exercised when it comes to making an informed decision. Furthermore, the BSE Chairman also said stressed on the topic that he has a firm vision for the BSE so that it can have a 22-hour trading format. And according to history, it has been observed that some investors somehow react to the positive development exaggeratedly.

Sethurathnam Ravi on valid governance:

Sethurathnam Ravi said that there should be no transparency when it comes to the functional duties of both the directors as well as the independent directors. Besides this, he also focused on the importance of the quality of the board. Additionally, the BSE Chairman also believed in the fact that an established forum should be there so that a smooth interaction between the investors and the auditors can carry out.

Following this, Sethurathnam Ravi also believed that the capital will somehow turn out to be constrained in the existed geo-political situation and organizations will need to search for the correct kind of capital. He is a firm believer in the fact that efficient management of the capital will act as the key for all the corporate. Apart from this, when Mr. Kothari coined the topic of the company being judged exclusively by the quarterly results, the BSE Chairman effectively replied that it is a good decision as through this the quarter review will be possible. He then continued stating that the current de-globalization along with the trade pacts are being broken and these are done as the motive of every other country now is solely to protect their own company.

Risks investors should be aware of:

The following are some of the listed risks that the investors should be aware of to avoid any kind of misfortune:-

• Fake news

It is inevitable to ignore any kind of information that is not true along with the rumor as the results of such ignorance will cost some monetary losses to the world economy. This has to respectively tackle so that the trust is built and hence maintained between the customers and the fellow organization.

• Potential artificial intelligence risks

Undoubtedly, artificial intelligence has been labeled as one of the game-changing technology in multiple sectors. But this doesn’t mean that AI doesn’t come with its very own risks, for instance, there are privacy invasion chances, chances of losing the job because of automation, faculty data causing algorithmic bias.

• The geopolitical surprises

All the geopolitical events that take place globally create some sense of impact on the world economy record. But, the scene here is that any kind of prohibition or crisis that takes place in a certain country might as well be a result of any kind of slight movement of the market players to the other unspecified regions which hence modify the dynamics in the economy of the world.

Investors and Junk Bonds:

When low-interest rates are observed, it merely gave the investors an upper hand in reaching for the maximum number of yields of junk bonds since the past which is why they must be careful. Given that the higher yields merely come with great risks but investors sometimes tend to forget this. This is where the junk bonds and the threat they pose come into play.

Junk bonds are here calculated as the loss-adjusted spread. Specifically, in current times the loss-adjusted spread is termed to be somewhere around one percent where the 3.5 percentage point spread is somehow adjusted for the 2.5 percentage points when calculated in the average annual historical losses.

Thus, the BSE Chairman, S. Ravi also emphasizes the fact that the investors should always be on a careful look out of the company’s Environmental, Social, and Governance compliance which they should later report so that the right stock where they can invest is discovered. Given that, we have an ever-changing world, the investors need to implement all they have learned in the past years and maintain vigilance towards all the potential emerging risks besides being more than just judicious in the distribution of the investments in the wide crew of stocks that are depended upon selective parameters.

[freepressjournals]

Learn What S Ravi, Former BSE Chairman says about Bank Merger

When recently 27 public sector banks merged including the Punjab National Bank, nearly every individual was worried about his savings and even fixed deposits with the public sector banks. As per the announcement made by Sethurathnam Ravi, the amalgamation scheme listed the merger of various popular banks like Indian Bank merged with Allahabad Bank, Canara Bank merged with Syndicate Bank, Oriental Bank of Commerce and the United Bank of India merged with Punjab National Bank, and lastly, Andhra Bank and Corporation Bank merged with Union Bank. The announcement of the merger came with a huge impact on the 308732 employees of the banks, 37492 domestic branches, 45448 ATM centers, and Rs. 3179304 crore deposits.

However, the impact of the merger is not only limited to all these. It is much more than the figures and facts that are mentioned in the papers. As per the BSE Chairman, these mergers come with a huge impact on the fixed deposit holders, savings account holders, employees, shareholders, borrowers, and the public. The primary aim of these mergers was to create large banks that are more capable of solving financial issues. Also, the merger was introduced to eradicate any kind of disparity between the small banks and large banks, cost savings from compliances and network overlaps, creating large middle management for selecting eligible candidates for the post of CGM, GMs, and DGMs for HR Department, IT department, and Risk management and much more. Overall, the mergers would improve the efficiency of restructuring and decision-making on high-leading banks.

Today, through this piece of information let’s talk about the impact of bank mergers as discussed by Sethurathnam Ravi with some quick points, making it easy to understand.

Any kind of consolidation or merger makes dread among the partners, investors, and the representatives associated with the banks. The serious short-term issues can be taken out with the possibilities of long-term advantages given the consolidation process is consistently executed, with firm yet fine adjusting of partner interests. Also, Unions of the bank employees from different affiliations should be ensured that their skills are united for the development of the new element.

The advantages of the mergers are just accomplished in the medium term to long term as the more grounded banks require critical time, endeavors, and assets to turn around the more fragile monetary records, execute the guide for adjusting HR and foundation like bank branches, bank products, ATMs, and so forth just as the reconciliation of Information Technology which is one of the greatest tests.

Integration is something that seems to be too difficult when such mergers take place. As per the BSE Chairman, coordinating two organizations on various IT stages into a typical one is harder than setting up another bank as each bank has fostered an interesting framework by drawing in with various sellers, henceforth, making a substance that can flawlessly cover all parts of the financial business will consume most of the day.

Another essential thought is to evaluate the lack or abundance of land and expand on an all-encompassing premise so they can be ideally utilized or arranged so inefficient resources are uncashed. Lastly, the banks with various principles and progressions to be welcomed in the total agreement are not meant for accomplishment.

So, when everything is considered like the assets and liabilities, culture, technology, etc., what do you think are the chances of success of any merger? To this, Sethurathnam Ravi answers that the success of any merger relies on the capability of managing the repercussion while supporting the changes. When the merger is used in the form of an unconnected initiative due to a lack of reinforcements that would weaken the primary aim of the merger that results in inefficiency.

As per the BSE Chairman, the collaboration of the strong bank changes should be completely determined to imbue restored good faith among Public Sector Banks which will rely upon the initiative directing the cycle thinking about the mammoth difficulties of taking care of asset incorporation, data innovation stage reconciliation, administrative compliances, dealing with the requests of the Union, boosting the workers, client maintenance, creating specialty items, rebranding, and repositioning and the progression intending to proceed with the endeavors in the present financial slowdown, challenges in the credit development, and control on Non-performing Assets with the public authority giving the necessary catalyst every once in a while.

Henceforth, it can be concluded that merging the banks is not a small task. It needs massive movement and understanding to make sure that everything is working seamlessly.