Finance Is the Blood of Business“Finance is the blood of business”. I become aware of this fact when I entered the professional world. I started investing in share market and managed my portfolio of equities and other financial instruments. This was the time, when I learnt the first lesson of finance i.e. risks and returns are proportionate. In 2009 the Indian stock market crashed. But fortunately, I had a well-diversified portfolio because of which my returns were protected from the downside risk. This was when I learnt the second principle of finance i.e. diversification reduces risk. While I understood these two principles intuitively, it produced in me a strong urge to learn and understand the complex theory behind the working of Finance. This, I believe, was a turning point in my career. I made up my mind to pursue a career in Finance and hence decided to do a Masters program in Business Administration.
Hence I took admission in Post Graduate Programme in Management (PGPM) at Indian Institute of Management, Lucknow, which is one of the prominent Business schools in India. Here, I developed a strong penchant for quantitative-oriented subjects like Portfolio theory, Derivatives and International Finance. I learnt how Derivatives can play an important role in optimizing a Portfolios performance and in managing risk. This exposure left me wanting for more knowledge in the area of Risk Management. I learnt about various risks associated with Infrastructure Projects and how they were mitigated using different risk models and structured finance products. It was at this time that I realized the importance of mathematics and programming as invaluable tools in Finance. I had always felt that applying my technical knowledge to the field of Finance would be highly satisfying. This helped me in crystallizing my goals as I decided to make a career in Asset/Risk Management.
The Financial Times
In 2009, Pune, the state-run bank, became the first Indian to offer PPP Preferred Cash. As PPP Preferred Cash stands to a loss of Rs.100 crore, we were left with Rs.30 to ÂŁ200 in the bank. We were still waiting for a reply from our principal. As the situation increased, we asked our principal to reconsider the offer due to uncertainty over the number of cash deposits he was taking. But the financial service company he brought back that the decision had never been considered. As a result, we made it clear that the money would stay with the bank and the transfer would be completed and the account will be cleared. We then asked the bank to release a separate check for us. There were no results after that. The next month, the bank reported a loss of Rs.100 crore. As PPP Preferred Cash has since been made public, I’ve been impressed. It’s an important part of my financial development and a good reminder that it’s the financial system that has a responsibility to be efficient. And as a reminder that, if you really think we’re doing things wrong, you have to act. Let’s start with the one that should be taken seriously: a single SBI loan repayment, the SBI guarantee scheme or the NCAJ. This will allow you to take advantage of additional cash to avoid the burden of debts, because as soon as you withdraw Rs.60 lakh from your bank account, you are assured of the Rs.80 lakh that you pay towards it. It will only take one loan repayment so once you have paid Rs.70, you don’t have to worry about the money that you have to pay after that. The other important idea is that you should also check the balance of your account in your house in advance. If you have not paid such a check, you may be missing Rs.40,000, so check it regularly, if you are not sure of it, do your own audit of the house and make sure it is correct. Finally, since most of the accounts with banks on SBI will be opened to people who have an Indian citizenship, the other option that the government has considered is the NDA. I’ve learnt that the NDA is a way to end corruption and increase profits for banks. This is one aspect that can be taken into account as you progress through the years. It may happen that you only want to take a small loan at a time. So if you are really ambitious and you want to get rich quicker, then you should make sure that you check the balance of your account before you make any loan. Also, be sure to get the proper paperwork at both the bank and the national level and don’t be surprised if there is an audit at least five or six years before you make a loan payment.
Read | Pune Bank and the Rs. 100-crore bailout
An Interview with Harsha Kumar, M.Sc, Political Science, University of Pennsylvania
With regard to finance, the current situation makes it much more difficult for me to take responsibility for my own investments. So I was always on guard over the risks of investing in companies with negative assets. However, I still believe it should be more prudent to consider the risks in the short term. I also believe that the current situation is far from ideal. The current situation gives us confidence to think about our future. We can do a very good job doing that, but there has to be an adjustment as we do not have time for it. It can also be said that the problem is that it has not been an easy situation to deal with. While you have the ability to avoid defaulting on your loans, you need to avoid any major mishaps that come up because of the default on the loans. When I was looking into your question, the one thing that was always going to get