Tag Archives: Indian

Why Indian students are disliked abroad?

cesar2

It was the first day of a school in USA and a new Indian student named Chandrasekhar Subramanian entered the fourth grade.

The teacher said, “Let’s begin by reviewing some American History. Who said ‘Give me Liberty , or give me Death’?”

She saw a sea of blank faces, except for Chandrasekhar, who had his hand up:?’Patrick Henry, 1775’he said.

‘Very good! Who said ‘Government of the People, by the People, for the People, shall not perish from the Earth?”

Again, no response except from Chandrasekhar. ‘Abraham Lincoln, 1863’ said Chandrasekhar.

The teacher snapped at the class, ‘Class, you should be ashamed. Chandrasekhar, who is new to our country, knows more about our history than you do.’

She heard a loud whisper: ‘F*** the Indians,’

‘Who said that?’ she demanded. Chandrasekhar put his hand up. ‘General Custer, 1862.’

At that point, a student in the back said, ‘I’m gonna puke.’

The teacher glares around and asks ‘All right! Now, who said that?’ Again, Chandrasekhar says, ‘George Bush to the Japanese Prime Minister, 1991.’

Now furious, another student yells, ‘Oh yeah? Suck this!’

Chandrasekhar jumps out of his chair waving his hand and shouts to the teacher, ‘Bill Clinton, to Monica Lewinsky, 1997’

Now with almost mob hysteria someone said ‘You little shit. If you say anything else, I’ll kill you.’ Chandrasekhar frantically yells at the top of his voice, ‘ Michael Jackson to the child witnesses testifying against him, 2004.’

The teacher fainted. And as the class gathered around the teacher on the floor, someone said, ‘Oh shit, we’re screwed!’ And Chandrasekhar said quietly, ‘I think it was Lehmann Brothers, November 4th, 2008’.

India Mortgage

mortgage2

Mortgage Financing industry, which is primarily known as the housing finance industry in India was estimated approximately at US $ 18 billion.In case of India there is a stiff competition in the financial services mainly from the European Banks like ABN Amro, HSBC and Standard Chartered bank.Top U.S. financial services companies are active in the asset securitization market in India are Citibank, GE Countrywide, Morgan Stanley etc. but not all of them are engaged in the market right now.

A significant change in the structure of the mortgage industry is being marked in the recent years. Presently the banks are gaining market share in direct housing finance segment. From estimation it is found that the share of commercial banks in the direct housing finance segment has increased from 27% in FY 2000 to 57% in the FY 2003.

Though the housing finance industry in India is growing for the past few years still financing through the organized sector continues to account only for 25% of the total housing investment in India (Source: LIC Housing finance).

The top players in this industry are housing finance companies, commercial (local as well as foreign) banks, cooperative banks and other non-banking financial companies (NBFCs).

Presently the commercial banks are set to take the major portion in next years. Presently Housing Development Finance Corporation (HDFC) is the market leader followed by State Bank of India (SBI). The Industrial Credit and Investment Corporation of India (ICICI) Bank and the Life Insurance Corporation (LIC) Housing Finance Limited also have significant market share.

The industry sources has reported that, 8 to 10 percent of the market share that foreign-owned banks have in the industry, Citibank has 5 percent share, followed by Standard Chartered and HSBC with about the 3 to 5 percent.

Housing Finance Disbursement In India

Here the table gives us a clear picture on the trend in organized housing finance disbursements in India.

 

US $ Billion FY 03 FY 02
Housing Finance Companies 3.91 3.24
Banks Direct 5.24 1.91
Banks Indirect 1.51 1.26
Total Direct 9.15 5.15
Growth Rate % 77.6 27.5

 

Sources: All figures in the above table are calculated and Industry estimates.

Housing finance disbursements have increased at a compound annual growth rate of 45.6% in the recent years with FY 2003 reporting a phenomenal 78% growth. While the growth in fresh purchase of housing assets may be lower than the disbursement growth because of the increasing incidence of loan takeovers (by competitors), it still remains high.

In case of India there is a stiff competition in the financial services mainly from the European Banks like ABN Amro, HSBC and Standard Chartered bank.

Top U.S. financial services companies are active in the asset securitization market in India are Citibank, GE Countrywide, Morgan Stanley etc. but not all of them are engaged in the market right now.

 

Home Loan Disbursement In India The home loan disbursement by the banks and housing finance companies has increased from Rs.29359.29 Crores in 2001-02 to Rs.51672 .7 Crores in 2002-03.

Home Loan Disbursement (Rs.In Crores)

Years HFC’s Banks
1999-00 9812.03 9911.35
2000-01 12637.85 9787.24
2001-02 14614.44 14744.85
2002-03 17832.17* 33840.53

Sources: -National Housing Bank

The share of banks in total home loan disbursement has increased from 43.6% in the year 2000-01 to 65.5% in 2002-03.

Mortgage To GDP Ratio In India

The Mortgage to GDP Ratio (ratio of outstanding home loans to GDP) in India is very insignificant in comparison to the other countries. In the developed countries the ratio varies from 25% to 60%. For the year 2001,the mortgage to GDP ratio in India was at 2.5%.

IFC and India’s Housing Finance Market

The International Finance Corporation, the private sector arm of the World Bank Group, has provided financing package of $200 million to HDFC (Housing Development Finance Corporation).

The loans of IFC’s strategy are to assist the expansion of financial markets in India and, in particular, to promote access to housing finance by middle-and lower middle- income households. In the year to June 30, 2003, IFC committed to invest up to $388 million in projects in India. 

The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives.

IFC finances private sector investments in the developing world, mobilizes ital in the international financial markets, helps clients improve social and environmental sustainability, and provides  technical assistance and advice to governments and businesses. Credits:economywatch.com