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Singapore's reforms: Lessons for Delhi
Some time ago, the Reserve Bank had asked Standard Chartered Bank to situate its hub in Singapore, not Hongkong. The reason, sensitive economic data could find its way to mainland China. The Reserve Bank, however, appeared to be unaware that far more sensitive material finds its way overseas when blue-chip corporates submit their information memorandum to international bankers when they secure cross-border finance.
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Capital efficiency comes of age
The credit disbursal curve has started climbing upward. The 20.6 per cent upward spurt in institutional lending in the first three quarters is the first sign that growth rates are looking up. Cement despatches are up in the first three quarters as well. True, prices are still rock bottom, and to that extent cement firms are going to suffer. But the fact is cement is going to build structures, at least some of which will spark off growth.
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Quick learners
The past few weeks have demonstrated a strange new phenomenon in Indian banking. The Reserve Bank of India's precipitate action in sucking out liquidity led to a hike in interest rates across the board, with banks losing no time in protecting their bottomlines. The strange thing was that banks did not merely rest content with hiking their prime lending rates.
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Inward-bound
Reports indicate that exports are slated to decrease by another 3% in Jan-March 1998 following the year-on-year fall of 5.13% in December last year (in dollar terms) and the fall by 1% in November 1997. It is commonplace to argue that the competitiveness of Indian exports has drastically fallen because of the massive depreciation of the SE Asian currencies.
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