IOSR Journal of Economics and Finance (IOSR-JEF)

Volume 4 - Issue 1

Paper Type : Research Paper
Title : Retrospects and Prospects of Agricultural Finance by Commercial Banks in Kurnool District of Andhra Pradesh
Country : India
Authors : Dr. T. Bhargavi Hrishikesh, Dr. G. Ramakrishna Reddy
: 10.9790/5933-0410110     logo

Abstract: This article starts with the background of the problem, on the basis of the identified issues; objectives were drawn to prosecute a fresh study in the study region. An attempt has been made to cover the retrospective study under the heads of CBs and agriculture finance, rural credit format in India, priority sector(PS) and agricultural finance, statistical profile of priority sector and agricultural finance by CBs both at aggregate and disaggregate level. The SR got the lion's share in PS lending. Andhra Pradesh has achieved the highest share not only in SCBs advances to priority sectors in SR but also in the disbursement under RIDF. SHGs Bank Linkage programme succeeded well in AP, besides distress among farmers is also higher. The central government has identified suicide prone districts in AP. The study felt the disagreement between the higher statistical share in agricultural finance and farmers' distress in the same state. An attempt has been made to analyze the farmers' perceptions relating to agricultural finance by employing quantitative tools viz., ANOVA and Chi Square tests. Suggestions for the policy makers and avenues for further research to the scholars' who would like to undertake research in this area are also mentioned.
Key words: Priority sector, credit delivery, structural anomalies, financial constraints, farm crisis.

1. The Government of India and RBI should formulate policies and guidelines to extend the concept of social control in banking industry even for the maintenance of ideal N: P: K ratio and good soil health management practices. It is believed that banks are the right catalysts to create a momentum for the development of eco- friendly farming system.
2. Policies should be formulated by government and RBI for compulsory adoption of drip irrigation system and usage of sprinklers for obtaining agriculture finance.
3. Crop insurance should cover both crop and market risks; besides coverage of more crops and village should be considered as the unit for loss assessment. KCC linked with personal and health insurance reduces the financial burden on farmers to some extent.
4. There are a large number of PACS and primary cooperatives located in rural areas where there are no other financial service outlets. PACS could provide valuable services to the smallholders if they get access to CBs on an ongoing basis. RBI has already listed cooperatives as eligible institutions under the BF/BC Model.

Paper Type : Research Paper
Title : Interest Rate Risk Management for Commercial Banks in Kenya
Country : Kenya
Authors : James Ngalawa, Philip Ngare
: 10.9790/5933-0411121     logo

Abstract: We show empirically that bank's exposure to interest rate risk or income gap determines the structure of the balance sheet. In particular, we show that in Kenya, commercial banks typically retain a large exposure to interest rates that can be predicted through the income gap. We also establish the sensitivity of income gaps to market interest rates as determined by the Central Bank of Kenya (CBK) through treasury instruments. Quantitatively, a 200 basis point change in CBK rates would lead to a change of net income equivalent to 0.4% of total assets of the bank. JEL Classification: G12, G21
Keywords: Interest rate risk, risk management, commercial banks in Kenya, Basel capital accord, income gap analysis.

[1]. Allen, F., Santomero, A. M., 1998.The theory of financial intermediation. Journal of Bankingand Finance 21 (11), 1461–1485.
[2]. Banz, R. W., 1981. The relationship between return and market value of common stocks. Journalof Financial Economics 9 (1), 3–18.
[3]. Basel Committee on Banking Supervision (2004). Principles for the management and supervision of interest rate risk. Bank for International Settlements.
[4]. Basel Committee on Banking Supervision (2001): Principles for the management and supervision of interest rate risk, Bank for International Settlements, Basel, January.
[5]. Bennett, D. E., Lundstrom, R. D., Simonson, D. G., 1986. Proceedings – A Conference on Structure and Competition. Federal Reserve Bank of Chicago, Ch. Estimating Portfolio Net Worth Values and Interest Rate Risk in Savings Institutions, pp. 323–346

Paper Type : Research Paper
Title : The Role of Non-Governmental Organizations (NGOs) In Participatory and Sustainable Rural Economic Development in Nigeria
Country : Nigeria
Authors : Ime Okon Utuk
: 10.9790/5933-0412230     logo

Abstract: Nigeria is predominantly a rural economy. If development is to take place and become self-sustaining, it must therefore, emphasis more on rural transformation. It is universally acknowledged that rural areas are very important to a nation. They serve as the base for the production of food and fiber. Yet, despite the importance of the rural areas, they have been neglected for long. Development plans of the country, therefore emphasized on rural economic development. But in the implementation of the planned objectives, the success was rather limited due to some constraints, at the top of which was the lack of participation by the stakeholders, the rural dwellers. The role played by government has failed at addressing the key issues in rural economic development. It is therefore, the responsibility of the Non-governmental Organisations (NGOs) who can penetrate the rural communities to engage them in participatory development process for the rapid development of the rural areas. It is the rural dwellers alone who can effectively identify their own problems and adequately identify their perceived needs. It therefore, becomes imperative that they be involved in the design and implementation of development programmes meant to improve their welfare.
Key words: bottom-up strategy, democratic principle, Non-Governmental Organizations, participatory development process, sustainable rural development.

[1]. D. Olatunbosun, Nigeria's Neglected Rural Majority (Ibadan: Oxford University Press 1975)..
[2]. U. Lele, The Design of Rural Development from Africa (Baltimore: Holt Rinbert. 1975).
[3]. C. O. Abakare,. The Concept of Rural Development.A summary, Inter-regional seminar on integrated Development, Cairo, 1977, 210 – 218 (8).
[4]. A. L. Mabogunje, The Development Process. Spatial Perspectives. Doctoral dissertation, Ibadan, University Press1981.
[5]. World Bank, Rural Development: A policy Analysis (Washington D. C: World Bank Press1975).
[6]. F. C. Okafor, "Basic Needs in Rural Nigeria". Social Indicators research, 17(1) 1985, 115-122(4).
[7]. P. Willetts, "The Conscience of the World". The influence of Non Governmental Organizations in the UN System (Washington: Christopher Hurst 1996).

Paper Type : Research Paper
Title : India-Gulf Trade Relations
Country : India
Authors : Dr. Prasann Kumar Das, Dr.SamirRanjanPradhan
: 10.9790/5933-0413141     logo

Abstract: This paper analyses India's trade relations with the Gulf region comprising six members of the Gulf Cooperation Council (GCC) -- namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE)—Iran and Iraq. While it is evident that India's trading relations with the Gulf region has transformed considerably over the years primarily underpinned by burgeoning economic growth, the structure and pattern of trade is yet to be diversified. The bilateral trade volume has surpassed USD100 billion mark, but, India's export basket continues to be concentrated to few traditional items, signifying less dynamism. Notably, the higher growth in bilateral trade has happened in the absence of any specialised policy framework for trade promotion, although there are occasional bilateral interactions and exchanges involving multiple stakeholders. There are huge potentials for diversifying India's export structure based on certain new growth sectors in which India has global comparative advantages with respect to the Gulf regions' imports structure. Therefore, there is a pervasive need for a unified Gulf specific trade strategyinvolving government, private sector and trade bodies, which could be called, GULF DIRECT. Such a special strategy would not only diversify India's trade basket, but, would also synergise other economic and commercial avenues of cooperation with the strategically important Gulf region.
Key Words: Gulf Region,Gulf Direct Global economy, Global Hub, Trade Intensity Index, Energy Economy, Bilateral Trade ,

[1]. Ariff, Mohamed and Tan EuChye, (1992), "ASEAN-Pacific Trade Relations ", ASEAN Economic Bulletin, Vol.8, No.3, March.
[2]. Balassa, Bela, (1965), "Trade Liberalization and Revealed Comparative Advantage", The Manchester School of Economic and Social Studies, No. 33: 99-123.
[3]. Balassa, Bela (1977) "'Revealed' Comparative Advantage Revisited: An Analysis of Relative Export Shares of the Industrial Countries, 1953-1971". The Manchester School of Economic & Social Studies, 45(4): 327-44.
[4]. Batra, Amita and Zeba Khan, (2005), "Revealed Comparative Advantage: An Analysis for India and China". Indian Council for Research on International Economic Relations (ICRIER), Working Paper No. 168, New Delhi.
[5]. Burange, L.G. and Sheetal, J. Chaddha (2008), " India‟s Revealed Comparative Advantage in Merchandise Trade". Department of Economics, University of Mumbai, Working Paper UDE 28/06/2008

Paper Type : Research Paper
Title : Efficiency of Indian Private Non-Life Insurance Firms using Stochastic Frontier Analysis
Country : India
Authors : G. S. S. Bhishma Rao, R.Venkateswarlu
: 10.9790/5933-0414246     logo

Abstract: The purpose of this paper is to measure the relative efficiency of non-life insurance companies in India from 2008 to 2013 by using Stochastic Frontier Analysis. It is found that BharatiAXA is at rank one and it has a relative efficiency score higher than all other companies. Since γ = 0.9251 which is close to one indicates that all the residual variations are due to the inefficiency effects. It is also found that the mean of efficiency score of non-life insurance companies is increasing from year to year.
Keywords: Efficiency, stochastic frontier analysis, Non-life insurance

[1] Fetcher, F., Perelman, S. Kessler, D. & Pestieau P. 1993. Productive Performance of the French Insurance Industry. Journal of Productivity Analysis 4: 77-93.
[2] Fenn, P., Vencappa, D., Diacon, S., Klumpes, P. & O'Brien, C. 2007. Market structure and the efficiency of European insurance companies: A stochastic frontier analysis. Journal of Banking and Finance 32: 86-100.
[3] Kasman, A. & Turgutlu, E. 2007. A comparison of chance-constrained data envelopment analysis and stochastic frontier analysis: An application to the Turkish life insurance industry.
[4] Kalirajan, K.P. (1981), "An Econometric Analysis of Yield Variability in Paddy Production", Canadian Journal of Agricultural Economics 29, 283-294.
[5] Kalirajan, K.P. (1982), "On Measuring Yield Potential of the High Yielding Varieties Technology at Farm Level", Journal of Agricultural Economics 33, 227-236.

Paper Type : Research Paper
Title : Drivers of logistics outsourcing practices in tea processing firms in Bomet County
Country : Kenya
Authors : Dennis Wasike Ngonela, Carolyne Mwaniki, Pr Gregory Namusonge
: 10.9790/5933-0414757     logo

Abstract: The study sought to determine the drivers and practices of logistics outsourcing practices among tea processing firms in County. The study surveyed the logistics outsourcing practices being used by the tea processing firms in Bomet by collecting primary data through self administered questionnaire. Data was analyzed using descriptive statistics. The study found out that the firms use several logistics outsourcing practices with own or in-house transport being the most common. All the tea processing firms that were surveyed outsourced some of their logistics functions though at varying degrees. Logistics outsourcing among the tea firms was most prevalent in operations such as warehousing, fleet management, fleet operations, transport and distribution. The study concluded that there exists a drive towards the use of logistics outsourcing as a strategy to reduce costs, to pursue core business activities, reduce risks and gain competitive advantage. The survey also established some of the challenges faced by the firms as they moved to outsource their business activities; these included loss of control of the activities, loss of employee loyalty, industrial unrests, switching costs, loss of information to competitors and resistance to change by the stakeholders

[1]. Africk, J.M. ,&Markeset, E. (1996).Making contract logistics work. Transportation & Distribution, January, pp. 58-60.
[2]. Bardi, E.J. ,& Tracey, M. (1991). Transportation outsourcing: a survey of US practices, International Journal of Physical Distribution & Logistics Management. Vol. 21 No. 3, pp. 15.
[3]. Bhatnagar, A.S. ,& R. Millen (1999). Third party logistics services: a Singapore perspective, "International Journal of Physical Distribution & Logistics Management, vol. 29 No. 9, pp. 569–587.
[4]. Bingham, D. (1994). Take a fresh look at your logistics strategies. Transportation & Distribution, March, pp. 58-60.
[5]. Bowman, R.J.(1994). Three's a crowd. Distribution& Logistics Management, August, pp. 78-81.

Paper Type : Research Paper
Title : Satisfaction and Service Quality in Indian Railways - A Study on Passenger Perspective
Country : India
Authors : V.Rajeswari, K.Santa kumari
: 10.9790/5933-0415866     logo

Abstract: Customer satisfaction and retention is one of the key determinants to measure the quality of products or services and hence the Indian Railway performance. Due to the growing importance of quality in our life, customers desire to enjoy a relatively better quality of products or availing superior quality services has been increased. India is the Second highly populated country of the world and its rapid population growth also contributes to an increase of people's travelling demands. In Indian Passenger trains is the cheapest and comfortable mode of travelling especially for long distances. This paper aims to investigate the passengers' perceptions about the service quality of rail transport system in Indian Railways while travelling between the major cities especially from Kerala to Delhi, Mumbai and Delhi. A modified SERVQUAL instrument including eight service quality constructs: Reliability, assurance, tangibles, timeliness, responsiveness, information system, empathy, food and safety and security were employed to measure the passengers" perceptions about the service quality of railways. Out of 500 respondents, only 442 were selected and these respondents were frequent railway traveller on these routes. Results indicate that passengers perceive that quality of services delivered to them is not satisfactory.
Key words: Service quality, Rail transport Passenger, satisfaction, SERVQUAL

[1]. Fatma Pakdil and Timothy N. Harwood, 2005. Patient Satisfaction in a Preoperative Assessment Clinic: An Analysis Using SERVQUAL Dimensions, Total Quality Management, 16(1): 15-30.
[2]. Biema, V.M. and B. Greenwald, 1997. Managing our way to higher service-sector productivity, Harvard Business Review, July-August, pp: 87-95.
[3]. Raghuram and Rachana Gangwar, "Indian Railways in the Past Twenty Years Issues, Performance and Challenges", W.P. No. 2008-07-05, 200
[4]. Gronroos, C., 1988. Service quality: the six criteria of good perceived service, Review of Business, 9(3): 10-13.
[5]. Stock, J.R. and D.M. Lambert, 1992. Becoming a "World Class‟ company with logistics service quality, The International Journal of Logistics Management, 3(1): 73-81.
[6]. Kuei, C., 1998. Service quality, in: C.N. Madu (Ed.) Handbook of Total Quality Management (New York: Kluwer Academic Publishers)..

Paper Type : Research Paper
Title : End of Duopoly in Credit Card Payment Scheme Industry
Country : India
Authors : Tapomoy Koley
: 10.9790/5933-0416776     logo

Abstract: The market of Credit Card Payment Scheme Industry have long been dominated by two major players - Visa & MasterCard. In the recent past the duopoly seems to be challenged by some emerging players of the industry. The paper tries to assess the existing market structure and discusses about the entry barriers of the market. It makes an attempt to find out direction of change and the reasons responsible for gradual change in market characteristics from duopoly to an oligopoly structure. The paper does detail analysis of strategies undertaken by some of the smaller players who have been successful to snatch significant market share from Visa & MasterCard. It also tries to trace the future path.

[1]. Managerial Economics by Suma Damodaran
[2]. Nilson Report
[3]. World Bank Website[]
[4]. Lafferty Research Website []
[5]. Amex Website []
[6]. JCB Website [ ;]
[7]. UnionPay Website []

IOSR Journals are published both in online and print versions.