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Current Financial Scenario 'a Disaster or a Correction' |
2008-12-11
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Mr. Subir Chakraborty - General Manager, Indian Overseas Bank
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| As a part of the ongoing industry interaction visit organised by Globsyn Business School for its students on the current financial condition, the finance department of the school decided to invite an SME from the banking industry to hear the real story from the horse's mouth. Mr. Subir Chakraborty - General Manager of Indian Overseas Bank was a unanimous choice in this regard. Mr. Chakraborty started the session with a very interesting punch line -'Current Financial Scenario - a Disaster or a Correction'. Then he went on to explain the 'Subprime Lending Crisis' and its worldwide implications. According to him some of the reasons for this situation are due to - high rate of borrowing, high level of outsourcing, un-speculated market, and high spending on US defense expenditures. Mr. Chakraborty pointed out that as a result of these, the global economy is facing problem from loss in assets, drainage of capital, collapse of institutions, exchequer loss, job cuts etc. The NASDAQ is on a free fall. India is also not completely protected from it though due to strong regulations, higher government stake, and high volume of domestic trade the effect is less. Sectors like FMCG, Pharma & healthcare, Education, PSU, Consultancy are least affected by the problem. Reflecting on his optimistic outlook he said that IT companies will bounce back as per the growth cycle. Talented people would be much in demand and skilled employees will get extra edge. |
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