IOSR Journal of Economics and Finance (IOSR-JEF)

7th International Business Research Conference

Volume 1

Paper Type : Research Paper
Title : Strategies adopted by Syndicate Bank towards Financial Inclusion in Kotekar, Mangalore District
Country : India
Authors : Dr Beena Dias, Dr Rowena Wright, Mr Justine James

Abstract: A large segment of the world's population fall below the poverty line; and it is this vulnerable group which has low/no income who are excluded from most of the basic financial services provided by the financial sector. Including them into the main economic stream has been the focus of Governments and financial institutions in the last couple of decades. This results in a win-win situation as it raises the standard of living of the masses on the one hand and it helps to promote economic development and stimulates inclusive growth on the other. This paper attempts to study the initiatives adopted by the Indian commercial Banks in terms of technology, distribution channels, and proposals for financial education of the unbanked masses with the aim to benefit the banks who have not yet implemented any of the initiatives. Further, the benefits will also automatically extend to the general public to create awareness regarding the procedure which is to be undertaken to avail the facilities offered by banks as a result of financial inclusion and to widen the horizon of banks by including the unbanked masses. The preliminary objective of this paper is to identify the strategies adopted by Syndicate Bank, Mangalore District in banked areas so as to study the possibilities of extending it to Kotekar an unbanked area in Mangalore District. Primary data will be collected by means of a questionnaire to explore the potential predictors of financial inclusion inareas that are geographically excluded from the financial mainstream. The study will focus on the relationship among the demographic variables and its impact on financial inclusion. The findings of the paper will reveal vital insight to both banks and policy makers for successful implementation of the 'policy of financial inclusion for sustainable growth of Indian economy'
Key words: Inclusive growth, financial institutions, financial literacy, unbanked masses

[1] Amaeshi, K. M. (2006) Financial Exclusion, Financial Institutions and Corporate Social Responsibility: A Developing Country Perspective‟, Working Paper, Social Science Research Network (SSRN), Rochester, NY.
[2] Devlin, J. F. (2009) An Analysis of Influences on Total Financial Exclusion‟, The Service Industries Journal, 29: 8, 1021 36.
[3] Mitton, L. (2008) Financial Inclusion in the UK: Review of Policy and Practice, Bristol: Joseph Rowntree Foundation.
[4] Solo, T. M. (2008) Financial Exclusion in Latin America – or the social costs of not banking the urban poor‟, Environment and Urbanization, 20: 1, 47–66.
[5] Dr.Bagli Supravat and Dutta Papita (2012) A Study of Financial Inclusion in India , Journal of Radix International Educational and Research Consortium, Volume 1, Issue 8,ISSN: 2277 – 1018.
[6] Agarwal, A. (2010) Financial Inclusion: Challenges and Opportunities, 23rd Scotch Summit 2010.
[7] Kempson, E. C. and Whyley (1999) Kept out or opted out? Understanding and Combating Financial Exclusion, The Policy Press. .
[8] Hannig, A. and Jansen, S. (2010). Financial Inclusion and Financial Stability: Current Policy Issues. ADBI Working Paper 259. Tokyo: Asian Development Bank Institute.
[9] Government of India (2011), "Provisional Population Totals‟, Paper 1 of 2011 India Series1, Table 2(2), Ministry of Home Affairs, Available at: http// [Accessed on 22 January, 2012]
[10] Ruiz-Porras, A (2009) Financial Structure, Financial Development and Banking Fragility: International Evidence, Análisis Económico Núm. 24 (56).

Paper Type : Research Paper
Title : Emerging Indian Market In South Africa And Mauritius
Country : India
Authors : CA Prakash Valecha

Abstract: When we think of South Africa and Mauritius, we consider that these are African markets. However besides being African Markets these markets have a large Indian population. 68% of Mauritius population comprises of people of Indian origin. Also one of the largest number of Indians living outside India are in South Africa. Indians often look up to the Western world and imitate their latest trends but many countries like South Africa, Mauritius look up to India and follow Indian trends. When the present researcher visited South Africa and Mauritius he observed that a large segment of the population in both these countries are Indians and although many of these Indians have not visited India they still maintain the social, cultural and religious identity as Indians. Indians in South Africa and Mauritius are descendants of migrants from colonial India. They went to these countries as Slaves or Indentured labourer's to work on the Sugarcane plantations, during late 19th-century through early 20th-century. Later on slavery was abolished and these hardworking Indians slowly and gradually prospered. Indians now in both these countries are hardworking, educated, successful and prosperous. The next thought that came to the researchers mind was to do research on these Indians and publish a paper for the benefit of theSociety.
Key Words : Emerging Indian Markets

[1] Mauritius Illustrated: Historical and Descriptive, Commercial and Industrial Facts, Figures, and Resources. Asian Educational Services.
[2] Memoirs and Travels of Mauritius Augustus Count De Benyowsky:
[3] Creating the Creole Island: Slavery in Eighteenth-Century Mauritius [Kindle Edition] Megan Vaughan.
[4] A Documentary History of South African Indians, by SurendraBhana and BridglalPachai.
[5] The Story of PRPather, the grand old man ofIndian politics in South Africa by RiashneePather.Passive Resistance of 1946: Selection of Documents - by E.S. Reddy and F. Meer | Passive Resistance 1946 - A Selection of Documents.
[6] The South African Indian Helot or Citizen? - Issued by Indians Overseas Association |Introduction by Hy. S. L. Polak, Hon. Secretary, Indians Overseas Association.
[7] The Indentured Indian In Natal 1860-1917 - by C. G Henning | A selection of pages from the book, including documents, letters article.
[8] The History ofthe Indians in Natal - by Mabel Palmer (source:

Paper Type : Research Paper
Title : Dynamic of financial asset prices: An Econometric analysis done in energy sector
Country : India
Authors : Mr.D.Kulothungan, Mr.C.V.Anandakrishnan

Abstract: We study the long-run and short-run dynamics of stock prices and exchange rates in energy sector. The exogenous shocks and its impact on these markets are studied with Johansen (1991) co integration test and unit root tests. We apply the unit root test to find out the unity among the market price and shares traded in energy sector from 2004 to 2013. The result suggests that stock and foreign exchange markets are positively related to volume of the shares and share traded on the period .The average deviation between the volume and shares traded is 11.84 percentages .Finally, through the application of recursive estimation the result shows that the financial crisis had a temporary effect on the long-run co movement of these markets.
Keywords: Stock markets, Foreign exchange markets, Capital market integration, financial crisis, Energy sector.

[1] Abdalla, I.S.A., and Murinde, V. (1997). Exchange rate and stock prices interactions in emerging financial markets: evidence on India, Korea, Pakistan and the Philippines. Applied Financial Economics 7, 25-35.
[2] Aggarwal, R. (1981). Exchange Rates and stock prices: a study of the US capital Ajayi, R., Mougoue, M., 1996. On the dynamic relationship between stock prices and exchange rates. The Journal of Financial Research 19, 193- 207
[3] Ajayi, R.A., and Mougoué, M. (1996). On the dynamic relation between stock prices and exchange rates. Journal of Financial Research 19, 193-207.
[4] Bahmani-Oskooee, M., and Sohrabian, A. (1992). Stock prices and the effective exchange rate of the dollar. Applied Economics 24, 459-464.
[5] Bhattacharya, B. & Mukherjee, J. (2003). Causal Relationship Between Stock Market and Exchange Rate. Foreign Exchange Reserves and Value of Trade Balance: A Case Study for India, Paper presented at the Fifth Annual Conference on Money and Finance in the Indian Economy, January 2003.
[6] Cappiello, L., R.F. Engle and K. Sheppard (2003) Asymmetric Dynamics in theCorrelations of Global Equity and Bond Returns, Working Paper No. 204,European Central Bank
[7] Chaudhuri, K., Daniel, B.C., 1998.Long-run equilibrium real exchange rates and oil prices. Economics Letters 58, 231-238
[8] Dornbusch, R. (1975). A portfolio balance model of the open economy. Journal of Monetary Economics 1, 3- 20.Feldstein, M. (1980) Inflation and the Stock Market. American Economic Review , 70(5): 839-947
[9] Fisher, R. A. (1930). The General Theory of Natural Selection. Oxford University Press, Oxford
[10] Fratzscher, M., (1998), "Why are Currency Crises so Contagious? A Comparison of the Latin American Crisis of 1994-1995 and the Asian Crisis of 1997-1998‟, Weltwirtschaftiliches, 134, 664-91.

Paper Type : Research Paper
Title : Wings of Changed Technological Payment Systems in Indian Banking –An Empirical Study
Country : India
Authors : Dr.Deepak Tandon, Dr. Neelam Tandon, Ms. Nishi Kumari, Ms. Reema Ranjan

Abstract: Information Technological changes have brought in a vertical and not so subtle products in Banking. There has been a radical shift from mass Banking to Class banking thereby bringing a total change in the face of Banking . .According to RBI, the major driving force behind the technological up gradation & transformations in the Indian banking sector has been the financial sector reforms of the nineties, opening up of the economy and globalization. Moreover, arrival of foreign and private banks with their superior state-of-theart technology has led to growing competition in the sector. This has brought in a win – win catch situation between Bankers and Customers . The computerization and use of technology in banks has helped in a number of ways. Minimized costs of operation, Minimized transaction costs for customers, improved customer services, overall efficiency, and improved front end are examples of such outcomes. This has brought in widening the gap between marginal benefits and costs in the technological enabled Indian Banking set up. The authors have attempted to expound the scope of innovation and the paradigm shifts taking place in RTGS, M- banking, NEFT, EFT, ECS have made significant move in payment systems through electronic mode. The authors have studied Volume of RTGS & Mobile transactions for the years 2011 to 2013 for 14 chosen banks - seven each in private and public banks by applying Shapiro-Wilk Test of normality and NEFT/ RTGS, paired T tests and have concluded that by increasing cost of building brick-and-mortar branches, decreasing cost of computers, high delivery costs and slow revenue growth force a relook at the conventional delivery systems in the Indian Banking system. The new strategy changes the focus of the branch from being a high cost transaction centre to a provider of a wide range of services like tele-banking, customer service kiosks, ATMs, and remote electronic banking.

[1] Andrade, C: "Banking products and services" in Indian institute of Banking and Finance Mumbai.
[2] Avasthi G P M (2000 - 01), "Information Technology in Banking: Challenges for Regulators", Prajnan, Vol. XXIX, No. 4, pp. 3 – 17
[3] B. Janki (2002): "Unleashing Employee Productivity: Need for a Paradigm Shift"; Indian Banking Association Bulletin XXIV (3); March 7 - 9.
[4] Gupta V: "Risks of E-banking in India" in E-Banking, the ICFAI University Press, 2004.
[5] Mittal, R.K. & Sanjay (2007): "Technology in Banking Sector: Issues and Challenges"; Vinimaya, Vol. XXVII, No. 4, (Jan – March); pp. 14 – 22.
[6] Padhy, K.C. (2007): "Banking Future"; (ed. book) Dominant Publishers and Distributor, New Delhi.
[7] Reddy, Y. V. 2005. "Banking Sector Reforms in India: An Overview." RBI Bulletin. June 2006. "Reforming India's Financial Sector. Changing Dimensions and Emerging Issues. RBI Bulletin. Shastri, R.V. (2003): "Recent Trends in Banking Industry: IT Emergence"; Analyst (March); pp. 45-46.
[8] Santhanakrishnan, M.S and Chetan, D: "Information systems for banks" in Indian Institute of Bankers Mumbai
[9] Uppal R.K., "Customer Perception of E – Banking Services of Indian Banks: Some Survey Evidence", The ICFAI Journal of Bank Management, Vol. VII No.10

Paper Type : Research Paper
Title : The Six Dimensions of Successful Post M&A Integration Plan
Country : India
Authors :  

Abstract: We always read that most mergers and acquisition fail to meet the objectives for which they were initially set up.
Despite the best intentions, many M&A deals fall short to live up to the expectations that the management promised to
the shareholders at the time of approval for the deal. Many a times the acquirer is left thinking at the end of a few years
after the acquisition was it the right deal? Why are we not able to meet the shareholder targets set at the time of
purchase of the target? And so on.


Paper Type : Research Paper
Title : Quantitative Easing And Its Impact On The Financial Markets Of Emerging Economies
Country : India

Abstract: The Quantitative easing programme by US Federal Reserve though seems to be a liquidity injecting stimulus programme, has been seen in the recent times to create panic among the investors throughout India and other emerging economies. The impact of US Federal Reserve proposing to withdraw its liquidity programme was observed on May 22nd, 2013. It is a clearly seen phenomenon that the impact of these meetings have been seen to have a profound impact and awaited very keenly by the investing community. Thus a need was felt to study the impact of Federal Reserve meeting in the year 2013 on the stock markets. For the study, fifteen 15 indices listed on Mumbai stock exchange were considered. 105 Event study methodology and parametric ttests were conducted to analyse the impact of the Federal Reserve meeting on the indices and exchange rates. We observe that emerging economies mainly Indian markets are highly integrated with the global markets especially U.S markets in the recent times when compared to few years back. This study thus forecasts the real influence of complete withdrawal of the Federal Reserve quantitative easing on the emerging economies.
Keywords: Federal Reserve, Quantitative easing, Liquidity, Stock markets, Forex markets, Event Study

[1] Antulio N. Bomfim( 2000) ― Pre-Announcement Effects, News, and Volatility: Monetary Policy and the Stock Market‖ Finance and Economics Discussion Series.FEDS working paper series 2000-50
[2] Ben S. Bernanke Kenneth N. Kuttner ( 2005) ―What Explains the Stock Market's Reaction to Federal Reserve Policy?‖ Article first published online: 3 MAY 2005, The Journal of Finance, Volume 60, Issue 3, pages 1221– 1257, June 2005
[3] [4][5]
[6] Bernanke, B. S.; Reinhart, V. R.; and Sack, B. P., 2004. ―Monetary Policy Alternatives at the Zero Bound: An Empirical Assessment.‖ Brookings Papers on Economic Activity (2): 1 – 78
[7] Brett W. Fawley and Christopher J. Neely ( 2013 ) ―Four Stories of Quantitative Easing‖ Federal Reserve Bank of St. Louis Review, January/February 2013, 95(1), pp. 51-88
[8] Carlo Rosa (2013) ―The Financial Market Effect of FOMC Minutes‖ FRBNY Economic Policy Review / December 2013
[9] Christopher J. Neely (2010) ―Unconventional Monetary Policy Had Large International Effects‖ Working Paper Series, Research Division Federal Reserve Bank of St. Louis, Revised August 2013
[10] Coenen, Gunter and Volker Wieland, (2003), ―The Zero-Interest-Rate Bound and the Role of the Exchange Rate for Monetary Policy in Japan‖, Journal of Monetary Economics, 50 (5), July 2003.

Paper Type : Research Paper
Title : Effect Of India's Current Account Deficit On External Debts And Foreign Exchange Rates
Country : India
Authors : Dr. Mehernosh B. Mehta, Prof. Hatim F. Kayumi

Abstract: Current Account is an important component of Balance of Payment which represents country's foreign transactions. A Current Account Deficit indicates negative sales abroad. A country undergoing Current Account Deficit results into foreign liabilities and debts with rest of world. This further leads to payback of valuable foreign exchange reserves. Substantial amount of foreign exchange are spent on paying out these debts. One important drawback of increasing external debt is decline in value of nation's domestic currency. Payment of foreign debts results in increase in demand of foreign currencies. This leads to devaluation of domestic currency and thus, enhances problems of foreign exchange crises. There are various factors which influence country's External Borrowings as well as Foreign Exchange Rates. One such important factor is Current Account (Trade Balance) Deficit. There is a need to study the impact of Current Account Deficit of India on its External Borrowings as well as on Foreign Exchange Rates. The present study tries to study trend of India's Current Account Balance and External Debt of India over a period of two decades i.e. from 1990 – 91 to 2012 –13. Study also covers analysis of components of India's Total External Debt that includes long term debt and short term debt. Finally, study determines correlation between India's Current Account Balance with External Debt, its components, and selected Foreign Exchange Rates that includes US Dollar, Pound Sterling, Japanese Yen & Euro Dollar.
Key Words: Current Account Deficit, External Borrowings, Foreign Exchange Rates

[1] Aswathappa K., International Business, Tata McGraw Hill Education Private Ltd, New Delhi, 4th Edition 2010.
[2] Rajwade A. V., Foreign Exchange International Finance Risk Management, Academy of Business Studies, New Delhi, 4th Edition 2004.

Paper Type : Research Paper
Title : Perception of Indian Investor towards investment in mutual funds with special reference to MIP Funds
Country : India
Authors : Prof Gauri Prabhu, Dr N.M. Vechalekar

Abstract: Mutual Funds provide a platform for a common investor to participate in the Indian capital market with professional fund management irrespective of the amount invested. The Indian mutual fund industry is growing rapidly and this is reflected in the increase in Assets under management of various fund houses. Mutual fund investment is less risky than directly investing in stocks and is therefore a safer option for risk averse investors. Monthly Income Plan funds offer monthly returns and invest majorly in debt oriented instruments with little exposure to equity. However it has been observed that most of the investors are not aware of the benefits of investment in mutual funds. This is reflected from the study conducted in this research paper. This paper makes an attempt to identify various factors affecting perception of investors regarding investment in Mutual funds. The findings will help mutual fund companies to identify the areas required for improvement in order to create greater awareness among investors regarding investment in mutual funds

[1] 1.Agapova, Anna, 2011, "The Role of Money Market Mutual Funds in Mutual Fund Families", Journal of Applied Finance, Vol. 21,Issue. 1, pp. 87-102.2.
[2] 2.Agarwal, Vikas; Boyson, Nicole M.; Naik, Narayan Y, 2009 "Hedge Funds for Retail Investors? An Examination of Hedged Mutual Funds", Journal of Financial & Quantitative Analysis, Vol. 44, Issue 2, pp. 273-305.
[3] 3.A. Vennila, R. Nandhagopal (2012) "Investors' Preference towards Mutual Funds in Coimbatore City", European Journal of Social Sciences ISSN 1450-2267 Vol.29 No.1 (2012), pp. 115-125
[4] 4.Binod Kumar Singh (2011) "A Study on Investors' Attitude towards Mutual Funds as an Investment Option", JOURNAL OF ASIAN BUSINESS STRATEGY, VOL. 1(2): 8-15.
[5] 5.Badrinath, S.G & Gubellini, S, (2011), "On the characteristics and performance of long-short, market-neutral and bear mutual funds", Journal ofBanking & Finance, Vol. 35 Issue 7, pp.176
[6] 6.Dranikoff L, Koller, T. and Schneider, A, "Divestiture: Strategy's Missing Link", Harvard Business Review, May2002, 80 (5).
[7] 7.Dr.Nishi Sharma (2009) "Indian Investors Perception towards mutual funds", Business Management DynamicsVol.2, No.2, Aug 2012, pp.01-09.
[8] 8.Gil-Bazo, Javier; Ruiz & Verd, Pablo, 2009, "The Relation between Price and Performance in the Mutual Fund Industry", Journal of Finance, Vol. 64, Issue 5, pp. 2153-2183.\
[9] 9.Hansen M and Nohria N, "What's your Strategy for Managing Knowledge?" Harvard Business Review, MarchApril, 1999, 77 (2).110.
[10] 10.Raja J, Ganesha (2000), "Mutual Funds, the Millennium Strategy", The Journal of The All India Management Association, Vol. 39(10), pp.42-47.

Paper Type : Research Paper
Title : Selectivity And Market Timing Ability Of Fund Managers In India: An Analysis Of Selected Equity Mutual Funds
Country : India
Authors : Dr Vikas Choudhary, Ms Preeti Sehgal Chawla

Abstract: A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a mutual fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Since small investors generally do not have adequate time, knowledge, experience & resources for directly accessing the capital market, they have to rely on an intermediary, which undertakes informed investment decisions & provides consequential benefits of professional expertise. The present study is aimed to examine the performance of equity schemes of mutual funds on the basis of selectivity and market timing abilities of fund managers in security market. Mutual funds cannot guarantee a fixed rate of return. It depends on the market condition. If a particular scheme is performing well then more return can be expected. It also depends on the fund managers' expertise and knowledge. Market timing skills relate to the ability of fund managers to correctly assess the direction of the market and position their portfolio accordingly. Selectivity skills refer to the capabilities of fund managers in generating superior performance by means of stock selection techniques. The study which is based on the Jenson Measure and Treynor-Mazuy Model, evaluates which equity fund entails selectivity and market timing over a period of 10 years.
Keywords: Mutual Fund, Selectivity, Market Timing Abilities, Performance Evaluation.

[1] Nooney Lenin, Vangapandu Rama Devi (2011), "Performance Evaluation of Private and Public Sponsored Mutual Funds in India",
[2] Agrawal, Deepak and Patidar, Deepak, A Comparative Study of Equity Based Mutual Fund of Reliance and HDFC (October 10, 2009). Prabandhan & Taqniki, Vol. 3, pp. 145-154, October 2009.
[3] Sarkar, J. and Mazumdar, S. 1995. Weak form of efficient market hypothesis, a special analytical investigation. Vikalpa, (April-June): pp.25-30.
[4] S. P. Kothari , Warner (2001)," Evaluating Mutual Fund Performance", The Journal of Finance, Vol. No. 5, October 2001
[5] Roy & Deb (2003), " The Conditional Performance of Indian Mutual Funds in India"
[6] Michael J. Cooper, Huseyin Gulen, and P. Raghavendra Rau (2006)," Changing Names with Style: Mutual Fund Name Changes and Their Effects On Fund Flows" The Journal of Finance, Vol. No. 6, December 2006.
[7] M. Jensen, The performance of mutual funds in the period 1945-1964, Journal of Finance, 23 (1968), 389-416.
[8] G. Kaimakamis and K. Kiriakopoulos, A note on Temporal Aggregation Effects on the Mean Variance Portfolio. Optimization Approach-Some Empirical Results, Journal of Financial Decision Making, 6(1), (2010), 69-76.
[9] C. Lee and S.Rahman, Market Timing, Selectivity and Mutual Funds Performance: An Empirical Investigation, Journal of Business, (1990), 261-278.
[10] J. Treynor, Toward a Theory of Market Value of Risky Assets, Unpublished manuscript

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