Good Morning India!

In life, you will realise that there is a role for everyone your meet. Some will test you, Some will use you, some will love you and some will teach you!  But the ones that are important are the ones who bring out the best in you! They are the rare and the amazing people who remind you why it is worth it!!!

                                                       A thought provoking forward received!

 Good Morning India!

Government today said it is examining the way in which the state-owned GIC entered into an arrangement with Warren Buffett's Berkshire Group and its subsequent cancellation within a short period after payment of USD 15.2 million premium towards reinsurance business cover.
General Insurance Corporation of India (GIC) had entered in arrangement with National Indemnity (Berkshire Hathaway) through broker K M Dastur in August, 2012 for pure retrocession (reinsurance) business but cancelled it on December 5.
"GIC has informed that they revisited the arrangement in December, 2012 due to its likely cost implications and hence a conscious decision was taken to cancel the arrangement w.e.f December 5, 2012," Finance Minister P Chidambaram informed Rajya Sabha in a written reply.
He further said, "The process of short listing the brokers, the manner in which the process was carried and the cancellation thereof within a short period are being examined further."
Till cancellation of the arrangement, he said, GIC had made payment of premium for two quarters amounting to USD 15.2 million (Rs 82.4 crore) with coverage risk for the same period.
The Minister was replying to a question on whether K M Dastur in connivance with Berkshire Group has cheated GIC to the tune of Rs 500 crore.
"There was no losses during this period. GIC has informed that it has not suffered any loss to the tune of Rs 500 crore by procuring this cover from Berkshire group through K M Dastur," Chidambaram added.
Narrating the sequence, Chidambaram said that GIC had informed that the unprecedented catastrophes in 2011 contributed to huge losses for GIC.
It was accordingly decided by GIC to accept pure retrocession business from international reinsurance companies only after obtaining adequate protection cover.
For procuring the specialised product it was decided to engaged brokers based on their global presence, experience in pure retrocession line of business, and ability to bring international quotations for such a highly technical cover. Consequently two brokers, K M Dastur and J B Boda were tasked to approach the global reinsurance market.
"Looking into the very limited market for such a cover, only one offer from National Indemnity (Berkshire Hathaway), USA, could be arranged through K M Dastur and the same was accepted w.e.f August 13, 2012," Chidambaram informed.
GIC is engaged in doing reinsurance business both within and outside India. Businesses form outside India include accepting reinsurance business from the global reinsurance companies which is termed as pure retrocession business.
                                                                                          Courtesy:- The Indian Express

Good Morning India!

Chart of the day!

India has seen a 'new normal' at least as far as inflation is concerned, over the past 3 years. The average wholesale price inflation (WPI) during this time frame has been around 8.7%. This against an average WPI of 5.2% between 2001 and 2008. Even in 2009 inflation was benign at 3.8%. However, the inflation levels have stuck well above RBI's comfort zone since then. This has also caused many to argue that probably the RBI should revise its inflation target upwards. This approach will also help the central bank be a little more lenient on monetary policy. However, the RBI has refused to go by this logic. While we understand the RBI's reluctance to accept higher levels of inflation as 'new normal', it cannot turn a blind eye to divergence between WPI and CPI (consumer price inflation). Even as WPI has cooled off in recent months (6.6% in January 2013), India has been amongst countries showing the highest rise in consumer inflation over the past year. Thus the RBI should shed its inflation target in terms of WPI and adopt one in CPI terms instead.

Data source: Economic Survey 2012-13

Courtesy:- Equity Master

Another Blow to Europe:-

As has been pretty much the European story since the crisis strengthened, with Europe’s leaders content to just kick the can down the road, it takes a few weeks after a ‘crisis’ summit/meet for the next crisis to erupt. So barely a month after the ‘last-chance’ summit where, at Angela Merkel’s insistence, Europe continued down the wrong path by plumping for fiscal austerity even in the face of a recession, the next crisis is here. US credit rating firm S&P has downgraded not just France, but 8 other countries as well. Expectedly, France has lost its AAA tag, Italy and Spain have been further downgraded (Italy now has the same status as Kazakhstan), and Portugal is now junk status. Apart from raising the cost of the ¤200 billion that France needs to refinance during the year, this could hurt both Sarkozy’s re-election chances as well as the prospects of necessary French reforms. Again, expectedly, the Greek restructuring talks have broken down and a full-scale default looks likely—most likely this will be in March when it has to redeem ¤14.4 billion in maturing debt. In other words, the possibility of a two-speed Europe once again looks likely, though it still remains unclear as to how countries are to leave the euro, and what happens to them when they do so.

With the downgrade of France and the others (Germany continues with the AAA tag), the real fallout will be on the European Financial Stability Facility as one of its principal sponsors isno longer AAA rated. Which means that either the EFSF will lose its AAA rating or the others like Germany will have to increase their contribution—given the problem got exacerbated by Merkel not wanting to give an unlimited German backstop to weaker European nations, this looks unlikely. How all of this will pan out is uncertain, though the IMF’s January 24 projections will help put a perspective on things. For India, apart from the impact that a recession in Europe will mean for exports—Europe is one of the main reasons for why Infosys lowered its next quarter earnings forecast—the larger issue remains of the funding needs of European banks and the money they have invested in India ($148 billion). It is no one’s case that all of this will go back, but certainly significant sums will be demanded back by European banks. How significant will decide the future trajectory of the rupee.

As appeared in the Editorial of Financial Express

Good Morning India!

Health Benefits Of Ladies Finger !!
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A rich source of dietary fiber, minerals, vitamins; recommended in cholesterol controlling and weight reduction programs.

The rich fiber and mucilaginous content in Ladies Finger pods helps smooth peristalsis of digested food particles and relieve constipation condition.

The pods contain healthy amounts of vitamin A, and flavonoid anti-oxidants such as beta carotene s, xanthin and lutein.

It is one of the green vegetable with highest levels of these anti-oxidants. These compounds are known to have antioxidant properties and are essential for vision. Vitamin A is also required for maintaining healthy mucus membranes and skin. Consumption of natural vegetables and fruits rich in flavonoids helps to protect from lung and oral cavity cancers.

                                                                                                                Courtesy:- Internet

INSPECTION BLUES!..Bankers stuff..Others too welcome!
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Branch Inspection is a fine balance between Precision and Time Management. Most of you must of have seen the Inspection Assistants feverishly hammering the keyboard by the fag end of the inspection. In their anxiety to finish the task, certain typing mistakes creep in unknowingly. Here are some of those funny probables in the Inspection Reports, which are otherwise serious affairs…. No pun intended please... Just enjoy reading them.....and try to find out the correct words…..!!!!

i) The ‘Chef’ Manager is advised to ‘insect’ the unit ….

ii) It is reported, the ‘burrowers’, did not acquire the ‘asses’
out of bank ‘fiance’
iii) The branch has not ‘exorcised’ proper discretion

iv) The official is now a ‘Faulty’ member at the ‘Leaning’ Centre
v) Rectified during the ‘curse’ of Inspection….

vi) The ‘Beard’ Resolution is silent on the additional ‘burrowings’

vii) The Official is on deputation to ‘Not working Department’
viii) ….vide Controllers' ‘massage’ dated…..

ix) The branch is keeping the ATM ‘curds’ and PIN ‘Nailers’ in the custody of
one official….

x) The on-site ‘ATM’ shit’ rate is very low….

xi) The controllers’ were reported to have given “herbal” instructions to the branch……
xii) The borrower’s expected ‘mental’ on the property appears to be on a high side..

xiii) The branch has transferred all its Recalled Assets to ‘Stressed Asses Resolution Centre’….

           Taken from Net