My Profile

::: My Profile :::

Professional Banker heading smallB Branch for Innovation & Start-up Finance, located at Fort, Mumbai. smallB Branch does hand holding & Debt Financing to entrepreneurs where Angel investors are doing Equity Funding...

Handled Large Corporate Advances (related with Term Loan, Working Capital requirement both fund based and non-fund based facilities), Project Appraisal including Infrastructure Sector, Corporate Loan Restructuring, Foreign Exchange, Trade Finance, MSME loans.

18+ years Post Professional qualification experience in Commercial Banking, Merchant Banking, Financial Institutions and Equity Research.

Personally like to read or write articles on Socio-economic issues of National and International Importance and to mentor Innovative Start-ups on Leadership, Motivation, Strategy & Planning, Relationship Management, Financial and Banking Management, Fund raising etc.

Twit me @raj_kapoor2020

RBI terms ... to understand

REPO Rate

The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the banking system

If the reverse repo rate is increased, it means the RBI will borrow money from the bank and offer them a lucrative rate of interest. As a result, banks would prefer to keep their money with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a certain amount of risk)

Consequently, banks would have lesser funds to lend to their customers. This helps stem the flow of excess money into the economy

Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks, while repo signifies the rate at which liquidity is injected.

Bank Rate

This is the rate at which RBI lends money to other banks (or financial institutions .

The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.

Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate (this is currently 6 per cent), the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.

Call Rate

Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. Si nce banks need funds on a daily basis, they lend to and borrow from other banks according to their daily or short-term requirements on a regular basis.

CRR

Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money

SLR

Besides the CRR, banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is again restrict the bank’s leverage in pumping more money into the economy.

Managers vs Leaders

Managers and leaders are often referred to synonymously, but only leaders allow their employees to solve problems with their own insight. The truth of the matter is this: Every leader may not be a manager, but every manager should be a leader. It’s easy to see that leadership and management aren’t the same thing, but a manager who lacks effective leadership traits will drive a business into the ground faster than you can count to 10.

Change doesn’t happen overnight when it comes to transforming managers into leaders. It takes time and energy to improve the way you manage and utilize more leadership characteristics on a daily basis.

Here are some tips to help you make the necessary improvements:

1. Managers give answers, leaders ask questions. There’s nothing certain to turn your employees against you faster than shouting orders at them. Why not spare yourself the impending resentment and simply ask your employees this: “What would you do?” or “What do you think of this idea?” Allowing people to participate in the decision-making process will not only transform what could have been an order into something more easily swallowed--it also inspires creativity, motivation, and autonomy.

2. Managers criticize mistakes, leaders call attention to mistakes indirectly. It may seem more efficient to point out your employees’ mistakes directly, but this will only leave them feeling embarrassed and frustrated. You should really be giving them the chance to learn and grow from through your critiques. Instead, give your employees the chance to address their mistakes.

For example, say a project was sent to a client and you receive back a disgruntled message. Calmly ask your employee about the clients concern and whether they feel what was provided was on par. This will give them a chance to provide their input, while also improving for the future.

3. Managers forget to praise, leaders reward even the smallest improvement. Praise pays off when it comes to increasing the overall success of your company. Finding time to recognize your employees for even the smallest accomplishment will only increase their interest in what they do. If you’re interested in ensuring your employees take pride in all that they do, regular feedback and recognition is certain to do the trick. Everyone wants to be genuinely appreciated for their efforts.

4. Managers focus on the bad, leaders emphasize the good. This really comes down to seeing the cup half empty or half full. If you’re only willing to point out the flaws of a project or an employee, you’re not giving them much interest in learning or improving. Instead, create a sandwich effect. Start with some form of praise, follow with the criticism, and end with praise.

5. Managers want credit, leaders credit their teams. Managers who lack leadership abilities are always first to take credit. But effective leaders understand the importance of crediting their teams for the big wins. This pays off in the long run for creative a workplace with a more positive company culture and employees who are driven toward more successes as a team.

Management shouldn’t be approach through force, but rather through influence. Put these techniques in place to improve the way your employees perform.

Professional Banker...

Raj Kapoor
Graduated from BHU in Science and Business Management, originally belongs to Mau (Uttar Pradesh).