Though this gave Indian banks ample opportunity to bring out radical changes in the management of sources and overall strategies, they have failed, by and large, to confront the emerging challenges. This timely book serves as a road-map for the banks to face the difficult path that lies ahead.

The book is authored by two experienced practitioners, Vasant C Joshi and Vinay V Joshi. Vasant Joshi is currently an independent financial and banking consultant and was earlier general manager, Bank of India, and director, National Insurance Academy. Vinay Joshi is president, Fincalc Publishing Corporation, Florida, a financial software company specialising in developing software for banks, stock brokers and financial firms.

The book begins with an overview of the liberalisation process, the rationale for instituting reforms and the basic forces that have led to the almostglobal acceptance of deregulation policies.

It highlights the likely problem areas--for example the question of survival with increased competition and with removal of entry barriers. It also stresses on greater innovation on the deposit mobilisation front and to simultaneously invest greater capital in speedier money transfer mechanisms and innovative products and hedging instruments. They also spell out different strategies for stronger and weaker banks.

A chapter is devoted to SWOT analysis to enable Indian banks strengthen their balance sheets and reach international standards. It discusses techniques for analysing balance sheets. Also discussed are use of CAMEL rating ratios and source and application of funds. The authors advocate the use of these analytical tools for auditing the management capabilities of the various banks.

Changes in terms of new review systems and adoption of advanced technologies required for effective risk management are also looked into. Important derivatives, includingcurrency and interest swaps and options, are discussed.

While providing an overview of risk management in the treasury operations, various approaches to market risk estimation and application of risk measures are discussed.VAR)approach and evaluation of VAR models to determine price volatility are also discussed.

The authors advocate the setting up of a separate treasury department in banks on an urgent basis. They also point out various controls required in the treasury department. The book discusses the 1992 securities market scam and the lessons for safeguarding banks from such upheavals.

While analysing government bonds, the authors discuss the future and present value of pricing financial instruments, method for annualising yields, non-callable bonds and their pricing and price volatiling of treasuries. Also included are discussions on measurements of duration and convexity of bonds.

A chapter on work technology dwells on the measures needed to improve the working systems, infrastructurerequirements and use of new technologies. Computer crimes which have been an interesting fall-out of automation are also discussed in the chapter.

The strategies and instruments required for asset/liability management to control the size of the net interest income is discussed. Use of relatively new techniques such as derivatives and gap management are also covered.

A chapter on bank marketing examines the changing customer profile, and the need for formulating effective marketing strategy.

The next chapter looks at the changing role of personnel departments in banks and the need to integrate them with the corporate planning process.

The authors also present an integrated personnel system model.

The last chapter is devoted to banking regulations. The authors advice the need to influence the shape of the regulatory framework and question the role of the finance ministry and RBI representatives on the boards of public sector banks.

The global developments in the area of regulation and therecommendations of the Basel Committee on Banking Supervision are also examined.

This book is a good reference text for students of banking, commerce and management, as well as for those undergoing training in bank staff colleges. The practical suggestions in this book is helpful for bank executives and for professionals in the financial services industry.