The Perspective Jan

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The Perspective

IMT....Lead the Future

January 2011

Corporate Communication and

Media Relations Committee

IMT Ghaziabad


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The Perspective 2011

January Edition Page 2

With every New Year come new challenges, new opportunities and new ideas. It's critical to

reassess one's goals, objectives and strategies in order to keep pace with the changing nature

of the world in order to remain relevant. IMT and its students are no exception.

Its true when we say that Leadership is not in our curriculum its in our philosophy.

We learn not only from our esteemed faculty but also from the way things work out in IMT.

To address the requirements of today's environment, education, advocacy and standards are

continually served by the students of this institute. This premier institute can gladly boast of

17 committees and clubs as a part of its family. Year 2010 saw an enormous number of

events being organized by such committees.

If the sports committee was trying its best to keep the students fit with its plethora of events,

our mess committee was not behind in testing the culinary skills of our students with its

Mess day.

IMT consistently strives for the best as was seen in the two successful events Marketing

World Cup and Start up fair being organized by Mark up and E cell respectively. These two

events garnered huge appreciation and pride of the students. Our college fest passion was

unmatched in its appeal and performance.

Last but definitely not the least, we are happy to announce that from this year onwards we

shall be including the activities of PGDM (executive) programme in all our issues. Their

valuable support and experience will be our guiding light.

We hope this year brings you good luck and happiness. We really look forward to your

feedback to make this newsletter much more enjoyable and entertaining.


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Index

Article Page No

Editorial 2

A walk with our faculty 4-7

A world of diversity called PGDM-

Executive @ IMT

8-9

Bridging the Gap 10-11

Connexions 12-15

League of Titans 16-17

Pearls of Wisdom 18-19

MFIs in India 20-22

Chakravyuh XI 23-25

Life @ IMT Ghaziabad 26


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A walk with our Faculty

Dr. Sita Mishra is a strong proponent of andragogy as a prerequisite for

developing educational leadership through efficient academic delivery.

She has more than 15 years of experience in industry as well as

academics. At present, she is working as an Associate Professor in IMT,

Ghaziabad.

Her research interests include consumer behavior, marketing

communication, retail marketing and brand management. She has published more than 40research papers in international/national journals/book chapters and presented papers in

international/national conferences, besides being on the reviewing board of a few.

Dr. Sita Mishra has conducted a number of Executive and Faculty Development Programmes

in the area of retail management. She is currently Chairperson -Executive and part time

programmes at IMT.

Excerpts of the interview, her take on PGDM Executive Program

Q 1: How long you have been associated with IMT and how is the experience teaching

in IMT?

Ive completed four years in IMT. Teaching in IMT is a fantastic learning experience. IMT

focuses not only on teaching but it also emphasizes research, training, and consultancy. It

provides avenues for faculty developments. Faculty members can pursue research and

knowledge co-creation without any interference.

Q 2: What are the subjects you are teaching here?

My area of specialization includes retail management, consumer behavior and brand

management. Apart from this I take core marketing courses for first year students.

Q 3: Which is the thing you like mostabout IMT?

As a faculty, the best think I like is academic freedom which entails the freedom to engage in

the entire range of activities involved in the production of knowledge, including choosing a


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research focus, determining what to teach in the classroom, presenting research findings to

colleagues, and publishing research findings. IMT provides full support and committed co-

operation in actualizing these pursuits.

Q 4: What is your take on PGDM (Executive) program of IMT?

PGDM (Executive) programme of IMT is a 15 months specialized course for working

professionals which provides diverse learning opportunities in a short span. This programme

enables these professionals to augment their careers and growth prospects. This course is

apposite for professionals who feel the need and the significance to continuously reinventing

themselves with the aim of keeping up with the dynamic global economic scenario.

Q 5: What was the motive of IMT starting the executive MBA program?

Keeping in mind the significance of continuing education for working professionals, IMT has

started PGDM (Executive) programme, so that these professionals can upgrade their

managerial skills for handling the challenges of real business world in better ways. The

course enhances their analytical and decision making skills so that they can efficiently deal

with various aspects of business and handle roles and responsibilities of senior management

effectively.

Q 6: Why only elite B schools are offering this course in India?

The level of knowledge and experience that these working professional bring into this

programme makes it different from the two years MBA programme. In India, only selected

few B-schools identify the requirements of working professionals in better ways and are well

equipped in terms of intellectual capital to handle these professionals. These institute can

design and customized course as per the requirements of these working professionals and

industry.

Q 7: Do you think India should have more institutes running executive MBA program?

Yes, keeping in mind a large no. of working professionals who are interested in upgrading

their managerial skills to handle various challenges in this global scenario.


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Q 8: Initially when IMT started this program it was an 18 month course, currently it is

a 12+3 month course. Would you suggest for 12 month program since most of the

institutes follow one year model?

To me, additional three months period wherein the students are required to accomplish

industry specific project is an USP of IMTs PGDM (Executive) programme.

Q 9: What is the perception of the corporate world regarding executive MBA program?

In corporate world, this programme is highly recognized. Given the value creation of this

programme, government and private sectors are sponsoring their candidates for the same and

collaborating with premier management institutes to design the specialized course for their

employees.

Q 10: Being Area Chair of this program what would you recommend to enhance the

visibility of this program?

PGDM (Executive) programme is catering to specialized needs of working professionals

who are coming from diverse organization and with rich functional experiences and

knowledge of working of corporate world. The visibility of this program can be increased

through different steps such as increasing the industry interaction face in terms of seminars,

invited lectures from senior executives of organizations, live projects and strengthening the

alumni networking. IMT has taken many of these steps; we need to do them on more frequent

basis.

Q 11: How different are the students between Executive MBA and two year MBA?

For two year management students having work experience is optional but for PGDM

(Executive) it is mandatory. These students share their work experience across differentstreams and industries in class-room discussion which adds value to their leanings. These

students understand the relevancy and importance of various issues in a better way.

Q 12: What method of pedagogy the institute employ to bring the best in both the

course?

In IMT, the learning model encompasses a broad ground of concepts with case studies and

real life projects. Apart from this, IMT focuses on students exchange programmes with


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reputed B-schools worldwide to enable student develop cross cultural insight and perspective

for the better understanding of global business.

Q 13: When most of the Executive programs in India offer General MBA, What makes

IMT to offer electives across all verticals so effectively in such a short span?

By offering electives across all verticals IMT provides opportunity to specialize in single or

dual areas which helps students to strengthen their prior knowledge or facilitates them to

amend their career.

Q 14: Anything would you like to say about current the batch?

I think a few qualities are common in our PGDM (Executive) students- sincerity, rigour anddiscipline. My best wishes for their future ..

BY ARUNENDRA PANDEY


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A world of diversity called PGDM-Executive @ IMT

The new mantra to an exhilarating MBA experience at IMT-Ghaziabad is assortment or

diversity. Having completed half the journey of my PGDM-Executive program, I have learnt

to put myself in the right frame of mind: success inspires success. Not only is the outcome of

pursuing Executive MBA thrilling, but the journey itself is elating and life-changing. I aspire

to complete this journey as a wealthy folk; not only in terms of subject matter proficiency,

but also because of the networking with some of the best brains who will become part of my

network for years to come.

The Executive MBA is an exciting journey not only because you are back in the classroom

revisiting business fundamentals and picking up new skills, but also because you are

constantly working on group assignments and case studies with participants from diverse

backgrounds. The PGDM-Executive class of 2011 has people who are from sales, marketers,

engineers, financiers, entrepreneurs, mid-managers, senior executives. The sheer experience

of working with such a diverse set adds many perspectives to what we do and how we do

things.

The core focus is on soft skills, which in point of fact are not so soft. But since, case studies

and presentations are the pedagogy at the PGDM-Executive program at IMT, the person gets

more comfortable in standing in front of the entire class, having an experience range of 5 to

18 years, and giving those creative presentations. Not only do you present but you also raise

your opinions as a group leader. This process increases self-awareness and creates personal

action plans which can be transformational. The one year duration of the program makes time

management of utmost importance for the participants. The courses just come and go and at

times you feel as if getting bombarded with mortar shells. It is the subjective opinion of an

individual that which stream of business excites him to the core and which courses he would

like to opt in turn.

Howsoever difficult the program may be, it has turned out to be a joy ride so far. The

journey that started with a dilemma at the time of applying for this program, whether leaving

employment at a stable point of 5 years in the industry, has been transformed in a decision

that could be life changer.


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I could have given up on my dream and gone back to the security of a successful career in the

Telecom industry. But if I had done that then, I wouldnt have had the pleasure today of

knowing that I have helped in the fructification of many unique and worthwhile ideas which

might otherwise have died in the many-a-time unequal struggle against the vagaries of the

government and economy. And I certainly wouldnt have had the pleasure of being invited by

the editor of the prestigious IMT newsletter to pen my experience before you!

Its also about the pursuit of glee and accomplishment. In short, carry the spirit of IMT with

you - always.

Submitted by: Ankur Girdhar, PGDM-Executive (2010-11)


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Bridging the Gap........

It all began with the storm of appraisal process when my Manager said I dont see any

outstanding achievement for a promotion this year but I would like to give you more

responsibilities, more growth in terms of work and definitely I hope you will exceed my

expectations as you always have. As each year of my work life passed by I was expecting

things to happen, but this year I have decided to let this storm become a Tsunami inside me

and change the things the way I wanted it to be. The relief came at big time in PGDM-

Executive, IMT-Ghaziabad where my dreams of being a future leader came live.

A batch of 60 students having 5 to 17 years of experience from diverse backgrounds and

masters in their domains was around me for the next 1 year to seal the world. Already I

started hearing the talks of various sectors, varied companies, and how exactly the process is

executed in retail chain to a core manufacturing unit. Being a software guy, sitting in an AC

cubicle I was excited to hear to those shop floor happenings, auto parts designing and telecom

structure complexities. I said to myself in my Heart, Dude, you are at the right place.

Executive MBA curriculum gave me the idea of learning the practical perspective by relating

to my past work and analyzing it. From Group presentations to case study discussions, every

person has his own way of shaping the things meticulously and its been a wonderful journey

when compared to what I would have been doing in the same work environment, doing

impassive work.

My passion had no bounds when I started liking Marketing. I never knew that there was

something like Consumer behaviour which plays an important role for any company to

strategize its theories. I have decided to do a Marketing majors and dared to compete in

various B-school competitions and to my delight I won an IIM- Lucknow Marketing Event,

where my unconventional and offbeat promotion strategies were rewarded. I realized the

effectiveness of case studies and the discussions we used to do in the class which made my

thought process run an extra mile.

Gone are the days when the Executives were not seen in the Cricket ground, Badminton and

Tennis courts. IMT has a wonderful campus to pursue all the interests which I have never

ventured. This reminded me of my HR once saying in the company Always balance your

work life with your personal life because you never know one can eat up the other. To be


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frank, there was very less scope of balance in corporate life for me but true to heart I have

been following it since the time I have stepped in to IMT.

Having covered half of the journey and destined to phase out the remaining in next 6 months,

IMT Executive Program has been a learning experience so far and I want this to continue in

the future as well, feeling that the learning curve should never end. It has been a privilege

since I was able to strike a balance that is so diverse in its disciplinary focus yet inherently

bound together by issues that are fundamental to bridging the gap between theory and

practice of doing research. I would like to be a next generation Entrepreneur and this gap has

given me immense strength in terms of knowledge to face the world confidently.


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Connexions

To be a successful strategist, you got to keep your head in the sky, but feet on the

ground, was one of the spellbinding quotes delivered by the power speakers at Connexions

2011. The weather was perfect and vibrancy was at the vanguard on the morning of January

22nd, 2011 as the roads led to Kapil Mohan at IMT Ghaziabad. After all, it was the time for

Connexions, the annual industrial conclave of PGDM-Executive program of IMT,

Ghaziabad. The theme of the summit was one of the most relevant topics for future managers,

Turning strategies into results, on which a panel discussion was hosted. The esteemed

panelists included corporate honchos from different industrial spheres, and the diversity they

represented is reflected below.

Keynote SpeakerMr Aquil Busrai

CEO Aquil Busrai Consulting

Former Executive Director Human Resources,

IBM

Panel 1 Panel 2

Moderator Moderator

Dr. Omkumar Krishnan Mr. Rajat Gera

Associate Professor, IMT Ghaziabad Associate Professor, IMT Ghaziabad

Panelists : Panelists :

Mr Aquil Busrai Mr. Chander Sabharwal

CEO Aquil Busrai Consulting Director, Oriental Bank of Commerce

Former Executive Director Human Resources,

IBM

MD, Crop Health Products Ltd

Mr. Naveen Luthra Mr. Suresh Tiwari

Vice President - Strategic Alliances Founder and CEO- Corporate Spectrum

GETIT Infoservices

Mr. Amit Roy

Mr. Rohit Sinha CFO NIIT Technologies

Head HR, L&T- Faridabad, Delhi NCR

Smita Sondhi

Head CSM- Symbiotic


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The lamp was lit by the director, Dr.Bibek Banerjee and the panelists. In his speech,

Dr.Banerjee emphasized on the need to distinguish between the mindset of planning and

execution. He cited the case of a batsman in cricket who has various strategies in mind while

the bowler is running towards him. But it is his execution that fetches him maximum rewards

and brings him to the record books. Thus, preparing strategies is a core ingredient of the

success story, but of utmost importance is to choose the best alternative to achieve the desired

result. Turning strategies into results, is at the top of minds during discussions at

headquarters. Nobody wants to share the jealously guarded success formula, as optimum

strategy has been the differentiator in leapfrogging ahead of competition. It has never been

more difficult than it is in todays volatile environment. The executives not only must beagile in responding rapidly to changes and dynamics in the marketplace, but also must align

and adapt their organization to actively produce the desired results in an uncertain business

environment.


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In the panel discussion, Mr.Busrai reminded everyone of the stark reality that in

organizations, strategy goes hand in hand with seniority. People who have been with

organizations for years and have got higher experience are believed to be good strategists.

Though it is true to an extent but keeping the enthusiastic minds at tactical and operational

levels away from strategic decision making is about marginalizing them. Disconnect between

operational planning and organizational strategy is harmful in the long run. According to him,

strategy is about things which are unseen and unforeseeable. This is the reason that Shells

international scenario planning has always been doing well in forecasting. This is a team of

diversity that plans and anticipates what could happen in the coming 20 years. The breakup of

USSR into independent states was predicted in the scenario planning in 1978 and it is

because of this that Shells plant at Sakhalen in Russia was re-operated with in 3 weeks ofsplit. The team had strategized and contingency planning was already there in the record

books. Companies fail as they dont learn from the market signals and thus need to challenge

what is happening at present and adapt accordingly.

The winning formula by Mr.Luthra consisted of aligning yourself with the following three

dimensions; the 3 As.

i.)Action: Torchbearer and most critical part of strategy

ii.)Adherence: Time bound action plan i.e. faithfulness in a process

iii.)Accountability:End to end ownership

Documenting the backup plan is a noteworthy aspect of execution.

A thought provocating point put across by Mr.Sinha was the importance to understand the

whyness of the cause i.e. the logic behind your action, and not its whatness i.e. merely the

operational task in hand. According to him, self trust is the most important aspect of turning

strategies into results, as a confident leader is the one who leads by example and in process

gains support of his peers and subordinates. His mantra was to aspire to be an alchemist.

The house was mesmerized by the power talk of Mr.Sabharwal. He stated that the strategy to

be adopted should be the one whose present value of future returns is measurable and

quantifiable. Strategy, according to him, is not a rocket science but a bottom up approach of

getting the fundamentals correct. It is about preparing the grass root solutions that help to


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map the future. On the same lines, he stressed on the need to introduce anticipatory

management as a subject in business schools. As per him, aligning strategies with

organizational values and percolating it down to the lower levels so that everyone is focused,

is of paramount significance.

In sum, the conclave was an incredible value addition for the participating student managers.

It enticed them to nurture strong beliefs to be carried forward to the corporate arena.

Everyone appreciated the fact that planning coupled with meticulous execution is the way

forward for a falcon to move ahead, unperturbed.


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League of Titans: Aces High and Shuttle Up

As the year drew to a close, so did the League of Titans (LoT), a five-month long sports

competition organized by the Sports Committee,IMT-Ghaziabad. In case you havent been

following the competition , LoT is a section-wise sports competition that includes both the

batches.

After the success of football, cricket, table tennis and throw ball matches , LoT saved its best

for the last events. Nail-biting finales, unbelievable intensity, incredible crowd support and a

good run by the minnows characterized the last few events.

Basketball has always been a glamorous sport, and it further cemented its reputation. The

final of the Basketball event, Hoop La, between favorites B1 and the challengers IB, was

the icing on a truly memorable cake. It started with a display of fireworks, but who would

have thought the real fireworks were yet to be seen? The general perception was that

defending champions B1 would steamroll any team in this tournament with players like

Apoorv and Abhishek in their team. Although the result was expected, any number of

accolades that IB received for their fighting spirit could never be enough. In the tight game,

the score read 33-32 in favour of B1. Apoorv Sharma, stepped up and sunk in two back-to-

back 3-pointers to stretch B1s lead to an unassailable one.

While the champions were B1, Rahul Anwala from IB was the major reason of his teams run

to the finals and an almost-win situation. He was rightly judged the Player of the

Tournament. One of the earlier matches of Hoop La saw sections A and G play the match

of the tournamentgoing into overtime at 25-25. Section G held their nerve , and came out

as winners 27-25.

The Sports Committee simultaneously organized the last two events which were Badmintons

Shuttle Up and Lawn Tenniss Aces High. Badminton has always been the most popular

sport to be played in IMT with the courts rarely empty at any point of time and the standard

of players better than the that of players in other sports. It wasnt a surprise that it was a real

crowd puller, a tense affair and characterized by closely fought contests. On the other hand,

due to the location of the tennis court and space constraints, Aces High came about

relatively quietly though brilliantly.


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One thing was common between the two tournaments. Shuttle Up final saw the best players

in college involved in a head-to-head clash in the final, while Aces High saw an epic final

that summed up a wonderful sports competition in a grand way.

The Shuttle Up final was contested in the dawn by B2 and B3. The most eagerly awaited

match of the tournament saw Nishant coming from one set down to beat Sushant. That set the

tone for the final, and Rahul and Renuka from B2 wrapped up the tournament in the next two

singles .

The final of Aces High saw the first junior section A, to enter the final of this seasons LoT.

They were against hot favourites B1 . The key match of the tie was Akash vs Atmdeo.

Although Akash raced to a huge lead and was on the verge of a win, Atmdeo made asensational comeback to win it after a nail-biting tie-breaker. The rest of the matches went to

both team alternately in a topsy-turvy final, but the mixed doubles pair of B1 overpowered

their section A counterparts to wrap up a memorable final. Akash Jain was adjudged to be the

Best Emerging Player of The Tournament and his bold approach almost paid off in the final.

With IMTs trademark sports event, Chakravyuh 2011, around the corner, the LoT was just a

prelude to some great heroics by the sportspersons at IMT Ghaziabad.

The same faces will definitely be in amidst the action come February 11, 2011. This time,

though, they will join hands to fight other b-schools in an attempt to become the pride of

IMT.


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Pearls of Wisdom

The Annual Conclave of PGDM Executive, IMT-Ghaziabad

On the windy and foggy morning of January

8th, 2011 all roads led to Kapil Mohan at IMT

Ghaziabad. It was the time for the Pearls of

Wisdom, annual alumni summit of PGDM-

Executive program of IMT, Ghaziabad. The

theme of the summit was 3 BL (People, Planetand Profit): Strategy in the new era, on which

a panel discussion was conducted.

The esteemed panelists had a diverse

representation going back as far as to Mr.

Rajesh Sehgal, from the pioneer batch of the PGDM-Executive program. Mr. Sehgal is COO,Caretel Infotech Ltd. To grace the occasion were Mr. Pronoy Dutt, Lead Resource- People &

Organization Development at Costa Coffee (India), and Mr. Ashish Gupta, General Manager

at VSK Associates, Delhi. Our Batchmate Mr.Sunil Prabhu, Formerly Group Project

Manager, Infosys was also part of the panelists.

The discussion was moderated by Dr. Om Kumar Krishnan, associate professor of Marketing

Management at IMT, Ghaziabad. The lamp was lit by the director, Dr. Bibek Banerjee and

the panelists. In his speech, Dr. Banerjee enlightened us about his stints at Coca-Cola. There

leaders were not only intellectually and rationally motivated but also inspired to connect with

3Ps (people, planet, profit) as they connected with finance .According to him, if India andChina were to live the way the U.S. lives ,then perhaps we would require another planet to

dispose of the waste of sorrow and unhappiness. According to the dean academics, Dr. R K

Chakraborty, people are the human capital and the profit they create is their economic value.

It is of utmost importance, that this value is engendered in a standardized, globally accepted

manner.

Triple bottom line is a term widely in use in industrial arena today. It captures an expanded

spectrum of values and criteria for measuring organizational (and societal) success in terms

of economic, ecological and social . The esteemed panelists came up with varying line of

thoughts on this theme. Everyone agreed on the pale fact that exploitation of humans brainshas set into the minds of

the people. Mr. Rajesh

Sehgal quoted the example

of handkerchiefs having

given way to paper

napkins, but no active

units for recycling those

used napkins. The short-

sighted profit approach

has been the key factor for

majority of the companies


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where they have neglected the importance of sustaining the planet. The stark reality that cameout as a result of the discussion was that 44,000 million hectares of green forest land has been

destroyed for peoples needs. Here, the thought given by Mahatma Gandhi, Mother Earth

has given sufficient to cover everyones needs but not enough to cover even a single persons

greed, is a best fit.

A thought provocating question raised by one of the participants was whether it is possible

for such a huge population to sustain without exploiting the natural resources. One of the

panelists answered it beautifully by saying, Yes, I agree that it is not possible but the human

minds have to acknowledge the fact that you should do what you are best at and leave the rest

as an opportunity for others, at which they are best at i.e. recycling the waste. This will

gradually reduce the use of natural resources as inputs for industrial processes.

Mr. Ashish started the discussion by stressing that the top most priority of a sustainable

business is profit. The need of the hour is to innovate in order to connect people and planet.

The companies should not only focus on the tip of the iceberg i.e. tangible financial benefits

but also the huge intangible benefits of green environment. According to him, sustainabilityis a differentiator at present but a license to operate for future.

The house was on fire when Mr.

Anurag compared the human

desires with FM radio. According

to him, the most widely heard FMnowadays is WIIFM -- Whats

in it for me? It demonstrated the

materialistic tangible benefits

overpowering the social benefits

of adopting sustainabledevelopment. Greed, according to

him, is the catalyst that drives

future growth and also caters to

the needs of the future

generations. He strikingly

illustrated that it is our parents greed to sustain the green environment that has enabled us to

live a happy life and now we have to carry the baton forward for our future generations. Mr.

Pronoy said profit is important for any industry to survive but corporate social responsibility

is a great opportunity to give back to the society for future business.

Over all, the event was a great success and hugely appreciated by one and all. The batch isenlightened and enthused by the Pearls of Wisdom shared by eminent panelists. Everyone

appreciated that sustainability is a never ending journey on the path of happiness and

prosperity.


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MFIs in India

The burning topic of todays time had its roots in the Indian economy since 2004 when the

Saritha Foundation started the microfinance schemes.

Globally a total of 1905 microfinance institutions are present of which 148(the registered

ones) are present in India which accounts to approx. 7% of the total (source: mixmarket.org).

So a handful of 148MFIs caters to a borrowing population of over 25 million. MFIs charges

around 24-30% but after the regulation the maximum rate they can charge is 24%

Now the onus lies in the hands of Government to decide the regulatory bodies. If RBI is

given the responsibility of regulating then keeping a check on their transactions will be atough job for them, especially when they have the mammoth task of tackling inflation. If the

responsibility is taken by the State then these MFIs will not have a centralized system.(Rules

will vary with the State) Furthermore, in India we also have a problem of Money lenders,

who have direct contact with the farmers and charge very high interest rate

First of all we need to clarify the basic difference between the two.

Difference between them is

1. The rate of interest which is by far much more in later case. So whether it is to beregulated by RBI or by state or some external agency is to be decided to provide with

the regulatory authority.

2. The MFIs loans are unsecured whereas the moneylenders usually lend against somesecurity in the form of land or cattle.

3. Moneylenders use their own funds whereas MFIs leverage borrowed funds.4. Usually MFIs do not employ gundas , its the moneylenders who employ them to

recover the amount forcefully.

5. Moneylenders are regulated by State Money Lending and Usurious Loans Laws,which states that the interest charged cannot exceed the principal amount. Whereas

the rate of interest guidelines in case of MFIs are done by RBI.

.


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Lets go through the money lent by MFIs- 85 -90% of the MFI costs is returned back to the

bank, then some operational expenses are taken out of the rest of the amount along with a

meager profit. It has to cover the risk associated with the defaulted loans, an army of sleuths

to get back the money from the borrowers and with the 24% binding over the interest rate it is

too difficult for the MFIs to sustain.

The current outstanding balance is over 8000cr. If central bank is thinking of closing down

these MFIs it would add to their CAR(capital adequacy ratio which might rise above the 9%

mark). This will affect the present market condition of the bank . Even with the so called

MFIs stating to have an average return rate of 99%, the govt. and RBI are of the view that

not more than 60% is returned back which is a very less figure compared to the loan amount.

Now coming to the topic of rural India, its a highly opportune time to capture this market.

Many companies (like HUL, Airtel etc) are trying to step into this market. Similarly even

Government is of the view that there should be some banks to start operating in these areas..

Recently RBI has come up with a new guideline where it will bear the burden of the

operating cost ofany banks branch in rural sector for 2 years and the branch will get a tax

waver for 5 years. Along with this we need to take into account the marketing cost,

employees cost (which will obviously be charged higher for the rural sector) etc.

Furthermore, MFIs and moneylenders have already captured the market. So they have the

first mover advantage. To penetrate the rural market, the banks will take atleast a decade or

two. A proper strategy has to be adopted to ensure sustainability and success.

Now if the RBI regulates these MFIs in accordance to their need then many purposes will get

solved. Firstly, these MFIs can act as a subsidiary. So giving them the banking rights will

help them to build a stronger base. They will fall under the RBIs guidelines and so in this

way RBI will not have its power cut short and the banking sector can reach the rural India.

Furthermore, already the Banks have given a debt of over 8000cr to the MFIs. On building a

new establishment in the rural sector will ultimately increase the liabilities in their balance

sheet. And not to forget, if the banks fail in their strategy (of building banks in rural) then it

will further shoot up the debt component. Supporting MFIs may not have that risk or at least

the add on risk. Moreover, the way the bank is offering the other banks to land in the rural

sector (in the form of tax evasion) is severely going to affect the liquidity of the system.


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Through this way, it would be easy for the Government to throw out the illegal moneylenders

and make it an organized sector.

So if given a roadmap along with directions these MFIs can be a blessing in disguise for the

rural sector. Also the burden of the Government to develop the rural sector will get fulfilled.


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Chakravyuh XI

In 1993, deriving its name from the roots of Indian history

symbolizing the very intention of its inception competition,

bravery and glory - an event in its infancy made it into the

academic calendar of IMT Ghaziabad.

18 years on, becoming the envy of over 30 participating B-

schools, an attraction to over 50 participating alumni each

year, that infant has grown to the Big Daddy of B-School

sports events.

IMT Chakravyuh isnt just any sports event. It is literally a 72 hours non-stop celebration of

a long-lasting culture at IMT Ghaziabad; an encapsulation of a tradition of unrestricted

boldness, indomitable spirit, grand organization and a hunger for healthy competition.

It is a blend of intense round-the-clock competition producing a war-like atmosphere, off-the-

field events testing your sporting intellect, entertaining activities revisiting the air of

childhood and DJ nights providing a festive ambience. It remains the ultimate test of an

athletes skill, stamina, passion, strength, agility and the ability to endure pressure and come

out victorious.

To be a part of Chakravyuh a team of 25 players has to be formed in a way to target the

trophy and the evaluation will be based on a points system. While it seems simple and

straight-forward, the amount of strategy that goes into the formation of a team is nothing

short of an ordeal.

For IMTians, mission Chakravyuh usually begins five or six months prior to the big event.

By then, team captains are already running around to recruit players for their teams while

players have multiple offers from different teams to decide upon. First-mover advantage,

formation of cartels, players jumping ships between rivals and the use of marketing concepts

to sell your team - Chakravyuh witnesses all these elements of the ruthless competition of the

business world.


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Apart from a fixed number of teams from IMT Ghaziabad, the mega event hosts teams from

B-Schools such as IIM Bangalore, IIM Lucknow, MDI, IIFT, MICA, SPJAIN, FMS, IIT

Kanpur, IIT Delhi and several other top B-schools in India.The team composed of alumni,

IMT Ghaziabad also graces the occasion.

While the bells of success of last years Chakravyuh still ringing throughout the Indian B -

School community, this year the Sports Committee of IMT Ghaziabad plans to take the event

one notch higher. The uniqueness of this event will further be enhanced by the introduction of

activities like Paintball and Betting Station. So, while the extravaganza is all about sports and

sportspersons, Chakravyuh 2011 will make sure it serves the people who miss out due to the

cut-throat competition.

Chakravyuh XI will also have a huge cash prize for best marketing thus, laying the

foundation for all the teams to express, innovate, improvise and paint this event in their own

style to make it even more special.

In addition to all this, Chakravyuhs online competitions and promotions have already started

in the beginning of the year, on its facebook page:http://www.facebook.com/Chakravyuh11

It promises to be another significant milestone in the competitions eighteen-years rich

history. It is a legacy that each and every IMTians is proud of and looks up to. From Feb 11-

13, 2011, IMT Ghaziabad throws down the gauntlet to all competing B-Schools

You may have run a marathon, but can you run a Chakravyuh?
http://www.facebook.com/Chakravyuh11http://www.facebook.com/Chakravyuh11http://www.facebook.com/Chakravyuh11http://www.facebook.com/Chakravyuh11


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Chakravyuh Mascots


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Life @ IMT Ghaziabad

The Perspective Jan

Documents