Treasury and Asset-Liability Management

Treasury and Asset-Liability Management

Banks accept deposits from customer the maturity of which ranges from 7 days to 10 years. The banks return these deposits on maturity for which the depositors have the comfort that banks will not default in repayment on time. These funds are partly invested in cash to meet CRR requirement, in Govt_ securities to meet the SLR requirements, and in loans and advances of various maturities. Banks however, do not have similar type of comfort for receiving these funds back, particularly from the borrowers.

For example, a bank raised a term deposit of 3-years at 7% and lends the amount repeatedly for a 3-months bills discounting at 9%. After every 3 months the bank will face the liquidity problem besides other risk. Similarly, if by that time there is decline in the interest rate (say it comes down from 9% to 8%), the bank will also face interest rate risk. Hence, the risk arises out of mismatch of assets and liabilities of the bank and the ALM manages such balance sheet risk.

Liquidity Risk vs Interest Rate Sensitivity Risk

Liquidity and interest rate risks: Banks are sensitive to liquidity risk because they cannot afford to default on their payment obligation towards the depositors as that may lead to a run on the bank. Banks have to roll over the deposits and advances on market determined terms. Any mismatch in the maturity profile will not only lead to liquidity risk but to interest rate risk. Liquidity : Liquidity refers to a positive cash flow in the form of cash or cash like assets. The available cash resources are compared with the immediately due liabilities or liabilities in a given time range (called bucket). The difference between these sources and uses of funds in specific time buckets is the liquidity gap which may be negative or positive_ Hence the liquidity gap arises out of mismatch of assets and liabilities. RBI has prescribed 11 maturity time bands (called buckets) beginning from next day to more than 5 years for measuring and monitoring the liquidity gap.

Interest rate: Interest rate risk is measured by the gap between the interest rate sensitive assets and liabilities in a given time band. Rate sensitive assets and liabilities: Assets and liabilities are called to be rate sensitive when their value changes in the reverse direction corresponding to a change in the market rate of interest. For example, if a bank has invested in a bond having 8% coupon and later on the market interest rate increases to 9%, the value of the bond would decline. The difference between rate sensitive assets-and liabilities in each time band, either in absolute amount or as sensitivity ratio, is indicative of the risk arising out of interest rate mismatch.

Role of Treasury in ALM

Treasury maintains the pool of funds of the bank and its core function is funds management. Hence its activities expose the bank to liquidity and interest rate risk. Treasury Head in a bank is normally an important member of ALCO. Risk management has become integral part of Treasury, due to the following reasons:

Treasury operates in financial market directly by establishing a link between the core banking functions (of


collecting deposits 4: lending) and the market operations. Hence, the market risk is identified and monitored through Treasury.

Treasury makes use of derivative instruments and other means to bridge the liquidity and rate sensitive gaps which arise due to mismatch in the residual rnattuity of various assets and liabilities in different time buckets.
Treasury itself is exposed to market risk due to its trading positions in forex and securities market.

With development of financial markets, certain credit products are being substituted by treasury products (in place of cash credit, the emergence of commercial paper by large companies). Treasury products are marketable and help in infusion of liquidity in times of need.

Use of Derivatives in ALM


Derivative instruments are used to reduce the liquidity and interest risk or in structuring new product to mitigate market risk. These are used due to following reasons:

1_ Derivatives replicate the market movements and can be used to counter the risks inherent in regular transactions. For example, if stocks that are highly sensitive to market movement are purchased, the Treasury can sell the index futures as a hedge against fall in stock prices.

2. Derivatives require small capital as there is no funds deployment, except margin requirement.

3. Derivatives can be used to hedge high value individual transactions or aggregate risks as reflected in the assets liability mismatch. For example, if a bank is funding a term loan of 3 years (having higher rate of interest),

with a deposit of 3-months duration (having very low rate of interest) by rolling over the deposit, it has to be rolled over 12 times and every time the bank is exposed to interest rate risk. To take care of this, the bank may swap the 3--month interest rate into a fixed rate of 3 years, so that interest cost is fixed and the spread on the loan is protected.

  Treasury can also protect the foreign currency obligations of the bank from exchange risk by buying call options where it has to deliver foreign exchange and by buying put option where it has to receive the foreign currency payment The options help the bank to protect rupee value of the foreign currency receipts and payments.

  Treasury helps the bank in structuring new products to reduce the mismatch in the balance sheet, such as floating rate deposits and loans, where the interest rate is linked to a bench mark rate. similarly, the corporate debt paper can be issued with call and put option. The option improves the liquidity of the investment. (A 5-year bond issued with a put option at the end of 3"1 year is as good as a 3-year investment).

Treasury and Credit risk & Credit derivatives

Credit risk in Treasury business is largely contained in exposure limits and risk management norms. Treasury gets exposed to credit risk in the following ways:

Investment in treasury products such as corporate commercial paper and bonds (instead of lending, investing through these debt instruments). But, the credit risk in a commercial paper being similar to a cash credit advance, the commercial paper is tradable due to which it is a liquid asset. Hence bank has an easy exit route. Hence the non-SLR portfolio supplements the credit portfolio and at the same time is more flexible from ALM point of view.

  The products like securitization convert the traditional credit into tradable treasury products. For example, the housing loans secured by mortgage, can be converted into pass through certificates (PTCs) and sold in the market (which amounts to sale of loan assets).

  Credit derivative instruments such as credit default swaps cr credit linked notes transfer the credit risk of the lending bank to the bank (called protection seller) which is able to absorb the credit risk, for a fee. Credit derivatives are transferable instruments due to which the bank can diversify the credit risk.
Treasury and Transfer Pricing

Transfer pricing refers to fixing the cost of resources and return on -assets of the bank in a rational manner. Treasury buys and sells the deposits and loans of the bank, notionally, at a price which becomes the basis of assessing the profitability of the banking activity. The price is fixed by Treasury on the basis of :
market interest rate,

cost of hedging market risk and

cost of maintaining the reserve assets.

After implementation of transfer pricing, the Treasury takes care of the liquidity and interest rate risk of the bank.

Policy environment

For the ALM to be effective, the bank should have an appropriate policy in place.

It should be approved by Board of Directors.

.2 .It should comply with RBI & SEBI regulations

.3 .It should comply with current market practices and code of conduct evolved by FIMMDA or FEDAI.

.4 . It should be subject to periodical review.



Components of integrated Risk rated Risk management ::

ALM Policy  ::: Composition of ALCO, operational aspect of ALM 'Such as risk measures, risk monitoring, risk
neutralization, product pricing, MIS etc.

Liquidity policy:::  Minimum liquidity level, -funding of reserve assets, limits on money market exposure, contingent
funding, inter-bank credit lines.

Derivative policy::: Norms for use of derivatives, capital allocation, restrictions on derivative trading, valuation norms,
exposure

Investment policy::: Permissible investments, norms relating to credit rating, SLR and non-SLR investment, private placement,
trading in securities and repos, accounting policy.
Transfer pricing::::  Methodology, spreads to be retained by Treasury, segregation of administrative cost and hedging cost,  allocation of cost to branches etc.

Treasury Derivative Products

Derivative Products

Treasury makes use of derivative products for the purpose of

Management of risk including the risk relating to ALM Catering to requirement of corporate customers
Taking trade positions in derivative products;

What is a derivative? A derivative is a financial contract that derives its value frorn another financial product/commodity (say spot rate) which is called underlying (that may be a stock, stock index, a foreign currency, a commodity). Forward contract in foreign exchange transaction, is a simple form of a derivative.

Objectives and instruments of derivates: The major purpose that is served by derivatives is to hedge the risk. Futures, forwards, options, swaps' etc. are the common derivative instruments. The derivatives do not have any independent existent and are based on the underlying assets that could be a stock index, a foreign currency, a commodity or an individual stocks. This means that derivatives relate to. future value.

Over the counter & exchange traded derivatives The derivative products that can be obtained from banks and investment institutions are called Over-the-counter (OTC) products. Some of the derivative products (called exchange traded derivatives) are traded in the stock exchanges including at International Monetary Exchange (IME) Chicago, London Financial Futures Exchange (LIFFE), Singapore Stock Exchange (SGX). Distinction between these two is as under:
Over the counter products — Forwards, currency & Ex c hange t r ade pr od uc t s s uc h as cur r e nc y, interest options, swaps etc. i nt er e st r a t e & c o m m odi t y f ut ur es & o pt i o ns,

st oc k / i ndex o pt i ons & f ut ur e s.

Size of the contract and its maturity can be | Only standardized contracts and with fixed maturity are traded.
according to requirement of the customer. |Price fluctuates according to market.
It is exposed to Counterparty (bank) risk. |No Counterparty risk. These are exchange protected.
Banks are the main players.                      |   Only members of the exchange can trade
- Option premium is upfront and the cost is loaded |Prices market driven. Members to contribute margin on the
agreed rates. basis of daily marking to market
Market is not liquid. Cancellation or reversal is expensive.| Market very liquid and prices are market determined.


Treasury makes use of OTC products such as forward contracts, options and swaps. Larger banks, which are market makers, cover their residual position in Futures traded in the exchanges.

Components of derivatives: The derivatives have components such as Options, Futures-forwards and Swaps. Option

It is contract that provides a right but does not impose any obligation to buy or sell a financial instrument, say a share or security. It can be exercised by the owner. Options offer the buyers, profits from favourable movement of prices say of shares or foreign exchange.

It is important to note that option can be exercised by the owner (the buyer, who has the right to buy or sell), who has limited liability (to the extent, the premium, he pays) but possibility of realization of profits from favourable movement in the rates. Option writers on the other hand have high risk and they cover their risk through counter buying. The owner's liability is restricted to the premium he is to pay.

Example : XYZ Limited, a broking company makes an offer to A to purchase from it 10000 shares of a Blue Chip company during the month of March, at Rs.2000 per share. A shall not have obligation to purchase the shares, if he does not want to do so_ For this, A has to pay Rs.I0000 to XYZ Limited, as premium.

This is an option transaction. In this transaction XYZ Limited are the option seller, who have the obligation to sell, if A wants to buy. A is the Option buyer, who has the right to buy but not the obligation to purchase. Rs.10000 is the premium payable by A as cost of the option. Similarly, A may be given an option to sell, some quantity of shares, at a pre-fixed price during a pre-fixed period.
Variants of options: There are 2 variants of options.

European option where the holder can exercise his right on the expiry date and

American option where the right can be exercised anytime between purchase date and the expiry date: Components of options: Options have two components i.e. call option and pu: option_
Cal! option : The owner Le_ the buyer, has the right to purchase and the seller has to obligation to sell, a specified no. of instruments say shares at a specified price during the time prior to expiry date (please refer to the example above).

A call option protects the buyer from rise in the stock price.

Put option : Owner or the buyer has the right to sell and the seller has the obligation to buy during a particular period. A put option protects the buyer from the fall in the stock price

Premium:The cost of the option charged upfront, from the buyer is called 'premium'. In other words, it is the fee paid for option contract (just lace insurance premium).

Maturity date or expiration date in an option: It is the last day on which the option can be exercised.

`In the money' under an option : Where exercising the option provides gain to the buyer, it is called 'in the money'. It happens when the strike price is below the spot price, in case of a call option OR the strike price is above the spot price, in case of a put option_

`At the money' : Where exercising the option provides no gain or loss to the buyer, it is called 'at the money'.

`Out of the money' : Where exercising the option results into loss to the buyer, it is called 'out of the money'. It is better to let the option expire.

Embedded option : Where the buyer is given an option to repay before maturity period, in case of a structured credit product. A 10 year bond has been issued by a company in which an option is given to the investor to get back the money at the end of 7^th year (which is a also put option).

Options and forward contract

	Option	Forward Contract
1.	Buyer has the option to buy or not to buy i.e. to make	1 Contract has to be settled on maturity_ It cannot be
	the contract or allow it to expire_		expire
2.	Buyer can chose the price (called strike price) himself.	2. Buyer has to accept the forward rate that is prevailing
3.	, Price of the option (premium) is payable up front.		market.
4.	Option contract is tradable and it can be sold if not	3.	There is no price for the contract. Interest differentials
	required.	of two
		4.	It cannot be sold but it can be rolled over or cancelled.

Futures

The futures are the contracts between sellers and buyers under which the sellers (termed 'short') have to deliver, a prefixed quantity (of currency or security or commodity), at a pre-fixed time in future, at a pre-fixed price, to the buyers (known as 'long'). It is a legally binding obligation between two parties to give/take delivery at a certain point of time in-future. The main features of a futures contract are that:

these are traded in organised exchanges which means that these are bought and sold only through the members of the exchange,

the buyers need to pay only the margin. These are marked to market on a daily basis and the members are required to pay margin equivalent to daily loss, if any This way the possibility of default on settlement date is avoided.

these are regulated by institutions such as SERI. The exchange guarantees all trades. routed through its members and in case of default by the member, the payment obligation shall be met by the exchange from Trade Protection Fund.

The future positions can be closed easily.

these contract are made primarily for hedging, speculation, price determination and allocation of resources. Future contracts are of standard size with pre-fixed settlement dates.

Financial futures : Futures relating to exchange rates (currency futures), interest rates (bond futures) and equity prices (stock / index futures), are called financial futures.

Currency futures issued by banks, serve the same purpose as the forwar• d contract. However, they being the standardized contracts, can be sold on stock exchanges. The currency forward contracts are on-the-counter product only_ Currency futures are traded for major currencies such as Euro, Pound, Yen, Australian and Canadian Dollar.

For example a contract of Pound 10000 is traded at London Financial & Futures Exchange (LIFFE) for delivery on January 22 at 2.105 US S. This means that on Jaifuary 22, the seller shall deliver to the holder of the contract Pound 10000 against payment in US S at 2.105 per Pound. If on the settlement date, the market rate is higher, the seller shall pay to the holder, the difference in the contract price and spot price. If, on the other hand, the market rate is lower than the contracted price, the buyer of contract shall bear the loss. Being a futures contract, the contract has to be performed by both the parties.

Interest rate futures are the contracts made on the basis of fixed income securities (say Bonds or Treasury bill) of specified size. Contracts based on Bonds deal in medium or long term interest rates and the contracts based on Treasury Bills trade in short term interest. Interest rate futures help in hedging the interest rate risk.

For example, a futures contract of say US $ 10000, on 1-year Treasury Bond traded at 96 if the expected interest rate at the end of the period is 4% (100-4 = 96, the futures price).

CRR& SLR PROVISIONS AT A GLANCE

 CRR& SLR PROVISIONS AT A GLANCE

			C R R				SLR
Legal provisions		Sec 42 (1) RBI Act 1934			Sec 24 (2-a) Banking Regulation Act 1949
Min & Max		RBI discretion			Min RBI discretion Max 40%
Kept as		Cash	balance with RBI		Cash in Hand, gold and investment in approved
						securities
Basis	As % of NDTL At			fortnightly	As % of NDTLs. On daily basis on DTL on last Friday of
		average basis			2nd preceding fortnight.
Interest		No	interest		As	per	investment
		payable wef Mar			made   in		different securities.
			31, 2007
Penalty	Penal	intt.	For the day on which		Penal   intt.	for	the day on which not
	not	maintained at   3% p.a.			maintained at 3% p.a. above			bank rate. For
	above bank rate. For			next day 5%.		next	day 5%.
Return  to			Form	A	Form	VIII	(20th	of
RBI		(fortnightly)				every month)

Treasury Products

Treasury Products

Treasury products Treasury refers to the products available in the financial market for raising and deploying funds for (a) investment and (b) trading in foreign exchange and securities market Products available in Forex Market:
The forex is a virtual market without physical boundaries_ The information dissemination is very fast through electronic media such as Reuters, Money Line, Bloomberg etc. The foreign exchange markets, as such, are as near-perfect with an efficient price discovery system_ The products are explained as under:

I. Spot trades

Forward

Swap

Investment of foreign exchange surpluses

Loans and advances

Rediscounting of bills

Spot trade : The spot trading in foreign currencies refers to a situation where the settlement takes place up to T+2 days i.e. maximum on the 3rd day. The settlement may take place on same day (ready rate) or on T 1 day i.e. by the next day (TOM rate). The ready rate and TOM rate are less favourable to the buyer and more favourable to seller_ Example : X sells certain foreign currency to Popular Bank on Feb I I, the settlement will take place on the same day. Bank will make payment by applying ready rate. If the settlement is to take place on Feb 12, the bank will apply TOM rate. If it takes place on Feb 13, Tf rate would be applied_

2_ Forward The forward in foreign currencies refers to a situation where the settlement takes place in future i.e. after T+2 days, on a pre-fixed rate and on a pre-fixed date, which are decided on the date of contract. Forward may be at a discount (where future rate of forex. is lower compared to present/spot rate) or at a premium (where future rate of forex. is higher). Example US $ is quoted at Rs.39.20 on Dec 12 (which is its spot rate). It is quoted at Rs.39.40 for delivery in January (which is forward rate). Here the forward is at a premium_ Had the January rate been lower than Rs.39.20, the forward would have been at a discount.

Forward rates are arrived at on the basis of interest rate differentials of two currencies (which are added or deducted from spot exchange rate). For example, for US S and UK Pound Sterling, the difference between the spot rate and forward rate represents the difference in interest rates in USA and UK. The interest rate differential is added to the spot rate for low-interest yielding currency (representing forward premium) and vice versa.

 Swap : Swap represents a combination of spot and forward transactions. Buying one currency in the spot market and selling the same currency for the same quantity in the forward market, constitutes a swap. Though swap is used for funding of requirements but at times there is some element of arbitrage.

Example XYZ Limited an exporter have with them $ 200000 today but they do not need foreign currency today. However, they will require the same amount of foreign currency at the end of the month from now. If the company sells the currency today in spot and buys the same amount 2 months' forward, today itself, it would be a swap transaction. By doing so, they will be able to hedge forex fluctuation risk.

 Investment in forex surplus : The forex surplus arcing from (a) profits on treasury operations (b) profits from overseas branch operations (c) forex borrowings in overseas market (d) foreign currency convertible rupee deposits, are left at the disposal of the


Treasury.

Banks are allowed to invest these surpluses in global money markets or short term securities.

Inter bank loans: These loans arc of short term nature up to one year and many times, overnight lending to domestic or global banks.

Short term investments: Banks invest in Treasury bills or gilt edged securities issued by the foreign govt. and other debt instruments.

Balance in NOSTRO accounts: Banks also keep balances in these accounts, which do not earn interest. Some correspondent banks, however, offer the facility to invest automatically once the balance exceeds the floor limits.

5. Loans and advances : Though Treasury does not undertake the loan granting function, but consent of Treasury is obtained by the credit appraisal department and disbursement function regarding availability of foreign exchange funds or credit lines, prior to sanction of such loans by the Credit Function.

6. Rediscounting of bills : Rediscounting is an inter-bank advance and Treasury provides refinance for the foreign currency bills purchased or discounted by other banks. These are normally of a short term period ranging from 15 days to one year.

CAIIB ABM 300 CASE STUDIES & MCQs

CAIIB ABM  300 CASE STUDIES & MCQs

Download link here

https://drive.google.com/file/d/1SeNI4-AlKTwhaJe9XlTp39pDRV81dNh3/view?usp=sharing

All the best



ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis
MODULE – B : Business Mathematics
MODULE – C : HRM in banks
MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.
If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.


IMPORTANT TOPICS FROM EACH MODULE
Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.
No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.


Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment
Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.
Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT
You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.




Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.
Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.
Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.

My favorite Personality: APJ Abdul Kalam

My favorite Personality: APJ Abdul Kalam

The full name of APJ Abdul Kalam was Dr. Avul Pakir Jainulabdeen Abdul Kalam. He has been the luminous
star in the Indian history as the Missile Man and People’s President. He was born on 15th of October in
1931 in Tamil Nadu. His life was full of struggle however has been an inspiration to the new generation of
India. He was a person who dreamed about India of being a developed country. For which he has quoted
that “You have to dream before your dreams can come true”. His immense interest in flight made him able
to fulfill his dream of being an Aeronautical Engineering. Despite being from a poor family, he never
discontinued his education. He completed his graduation in Science from St. Joseph’s College in
Tiruchirappalli and Aeronautical Engineering from the Madras Institute of Technology in 1954.
He joined DRDO as a senior scientific assistant in 1958 where a small team, developing a prototype hover-
craft, was headed by him. Because of the lack of exciting response from the hovercraft programme, he
joined the Indian Space Research Organization (ISRO). He is widely famous as the “Missile Man of India” as
he contributed a lot in developing ballistic missiles and space rocket technology. He was the driving force
behind country in developing the defence technologies. His great contributions have brought our country
into the group of nuclear nations.
He was a notable scientist and an engineer who also served the country as 11th President from 2002 to
2007. Pokhran-II nuclear test of 1998 also had his dedicated involvement. He was the man of vision and full
of ideas who always aimed at development of country. He has highlighted the action plans about country
development by 2020 in his book titled as “India-2020”.
Numerous projects were headed by him such as launch of the Rohini-1, Project Devil and Project Valiant,
developing missiles (under missions Agni and Prithvi), etc. For his great contributions in improving the
nuclear power of India. He has been honored with the highest civilian awards for his dedicated works. After
completing his service to the government of India as President, he served the country as a visiting
professor at various valued institutes and universities.
He wrote many inspirational books such as “India 2020”, “Ignited Minds”, “Mission India”, “The Luminous
Sparks”, “Inspiring Thoughts”, etc. In order to beat the corruption in country he launched a mission for
youths named “What Can I Give Movement”. He served as visiting professor in various universities and
institutes of the country (Indian Institute of Management Ahmedabad and Indore, etc), as Chancellor of
Indian Institute of Space Science and Technology Thiruvananthapuram, JSS University (Mysore), Aerospace
Engineering at Anna University (Chennai), etc. He has been awarded with the awards like Padma
Vibhushan, Padma Bhushan, Bharat Ratna, Indira Gandhi Award, Veer Savarkar Award, Ramanujan Award
and many more.
According to him, the real asset of the country is its youth that’s why he has always motivated and inspired
them. He said that, “The nation requires role models in leadership who can inspire youngsters”.

Effects of science and technology

Effects of Science and Technology
Science and technology plays vital role in the modern life and profoundly influenced the course of human civilization.
Technological advancement in the modern life has provided us lots of remarkable insights all over the world.
Scientific revolutions has taken its full speed from the 20th century and has become more advance in the 21st
century. We have entered to the new century in new ways and with all the arrangements for well being of the
people. Modern culture and civilization has become dependent over the science and technologies as they have
become integral part of life according to the need and requirement of the people.
India has become an important source of the creative and foundational scientific developments and approaches all
across the world. All the great scientific discoveries and technological achievements in our country have improved
the Indian economic status and have created many new ways to the new generations to grow in the technologically
advanced environment. There are many new scientific researches and development have been possible in the field
of Mathematics, Architecture, Chemistry, Astronomy, Medicine, Metallurgy, Natural Philosophy, physics, agriculture,
health care, pharmaceuticals, astrophysics, nuclear energy, space technology, applications, defense research,
biotechnology, information technology, electronics, oceanography and other areas.
Introduction of scientific researches, ideas and techniques to the field of education has brought a huge level of
positive change in the new generation and provided them variety of new and innovative opportunities to work in the
field of their own interest. Modem science in India has been awakened by the continuous and hard efforts of the
outstanding scientists. Scientists in India are great who have made possible the scientific advances of highest
international calibre.
Technological development in any filed enhances the economy of any nation. In order to improve the power of
science and technology in India, Indian government has made Council of Scientific and Industrial Research in the year
1942 and Board of Scientific and Industrial Research in the year 1940. In order to emphasize the growth of science
and technology in the country, Indian government has established a chain of national laboratories and research
institutes in various regions.
After the independence, our country has been involved in the promotion of spread of science for the national
development. Variety of policies made by the government has emphasized the self-sufficiency and sustainable
growth and development all through the country. Both science and technology have impacted the economic growth
and social development in the country in extraordinary manner.

Effects of social media

Effects of Social Media
Back in the 19th century it took very little to have fun. Simple outdoor activities such as basketball,
football, and playing hide-and-seek brought happiness and joy across the world. Things changed drastically
once social media was presented to people. Social media has given people more ways to express
themselves, but has come at a high price. Although social media is the top form of communication even
above cell phones, it has brought many risks. The pros associated with social media are communication,
social networking, and freedom of speech while the cons are internet crime, loss of productivity in health
and education.
Social media has some great advantages. It allows for communication between long lost friends and can
connect you with business partners. Social sites let you express and communicate by exchanging messages
and comments. They also allow you to establish connections with family, friends, and acquaintances. For
example, someone moving from state to state or from country to another country can stay connected with
them without missing a beat through social media. Relationships and bonds can be strengthened, as a
result, because of it. In addition, it allows you to express how you are feeling and share your thoughts
publicly with others. Twitter is a big example of how they use the site to share their thoughts in a creative
way. Blogs started on social media allows for others to share their input on things and allow for
competitive discussions. The progression of communication can be achieved rapidly from various social
networking platforms. Social media helps in schooling a little. With social media, you can have better
structured study groups which will allow the students to share information quicker. Those schools also see
the impact social media have on education, so they implemented it into their system.
Opportunities such as connecting with business personnel can be achieved through social media. There are
numerous amounts of cases where someone became a millionaire because of social media. Social media
outlets like LinkedIn allow you to socially find and connect with successful entrepreneurs. The
personalization directly contributes immensely because social media allows you to view the company’s
website for deals, and it informs you on upcoming info about their products. It has become a free source of
publicity as ads pop up throughout the use of that site.
At present, social media give a lot of possibilities for users, starting from social networks up to geosocial
services. However, they have an exclusive influence on the formation of the consciousness of the youth,
their motives, valuable orientations, lifestyle, a choice of goals and ways of their realization, accompanying
the socialization process. The given essay will discuss how social media affects the youth of today.
Social media can have both positive and negative impact on the youth. Thus, they allow young people to
communicate with peers, relatives, friends, living in different cities and countries. Moreover, they are used
as an instrument for self-development because they offer a lot of services, like reading of books, studying
of foreign languages, photo and video hosting. Later, these activities can be discussed with the other
members of the Internet communities. Thus, social media offer unlimited interactive communications, a
direct participation of the youth in the generation and retranslation of media content, a high level of
process involvement, a maximum feedback speed and user personalization. On the other hand social
media has opened up floodgates of some of the very negative and destructive social evils. It has become a
handy tool for miscreants to defame people and spread venom in the society in different sphere of social
life.
To sum up, social media is really a boon if used responsibly otherwise it has huge potential to destroy
social fabrics if used wantonly.

Make in india

Make in India
Make in India campaign was launched in new Delhi by the Prime Minister Sh. Narendra Modi on 25th of September
in 2014. It is an initiative to make a call to the top business investors all across the world (national or international)
to invest in India. It is a big opportunity to all the investors to set up their business (manufacturing, textiles,
automobiles, production, retail, chemicals, IT, ports, pharmaceuticals, hospitality, tourism, wellness, railways,
leather, etc) in any field in the country. This attractive plan has resourceful proposals for the foreign companies to
set up manufacturing powerhouses in India.
Make in India campaign launched by the Indian government focuses on building the effective physical infrastructure
as well as improving the market of digital network in the country to make it a global hub for business (ranging from
satellites to submarines, cars to softwares, pharmaceuticals to ports, paper to power, etc). The symbol (derived from
national emblem of India) of this initiative is a giant lion having many wheels (indicates peaceful progress and way to
the vibrant future). A giant walking lion with many wheels indicates the courage, strength, tenacity and wisdom. The
page of Make In India on the Facebook has crossed more than 120K likes and its twitter followers are more than 13K
within few months of launching date.

This national program is designed to transform the country into a global business hub as it contains attractive
proposals for top local and foreign companies. This campaign focuses on creating number of valuable and honored
jobs as well as skill enhancement in almost 25 sectors for improving the status of youths of the country. The sectors
involved are automobiles, chemicals, IT & BPM, aviation, pharmaceuticals, construction, electrical machinery, food
processing, defense manufacturing, space, textiles, garments, ports, leather, media and entertainment, wellness,
mining, tourism and hospitality, railways, automobile components, renewable energy, mining, bio-technology, roads
and highways, electronics systems and thermal power.
The successful implementation of this plan will help in the 100 smart cities project and affordable housing in India.
The main objective is to ensure solid growth and valuable employment creation in the country with the help of top
investors. It will benefit both parties, the investors and our country. The government of India has created a
dedicated help team and an online portal (makeinindia.com) for the easy and effective communication of investors.
A dedicated cell is committed to answer all the queries from business entities anytim

Women empowerment

Women Empowerment essay for promotion related


In the past, women were treated as mere slaves. As they belong to the weaker sex, men used to keep them under
their thumb. They were denied freedom. They were kept like dumb cattle within the four walls of the house. Indeed,
they had no rights. Their most sacred duty was to obey blindly.
Though the conditions in the country are fast changing, yet woman are still treated, in some respects, in the same
old way. There are still people who feel happy in the family when a female child is born. Even an only daughter is
supposed to be a curse for the family.
Our country is changing politically, economically and socially, at a swift speed. The condition of woman is also
gradually changing. They have begun to take their due place in free India as is evident from the following facts.
In free India, woman cannot be kept as sheer domestic servants. They have to play their vital role in the
development of the country. That is why more and more girls are getting education. No distinction is now made in
matters of education between boys and girls. Educations are bound to give them place of honour in society.
Our constitution has given equal rights to woman. No distinction has been made on the basis of caste, religions or
sex. Their rights have thus been safeguarded. Reservation for woman in state assemblies, parliaments and the upper
house is apt to be enacted in near future.
Many a woman has begun to occupy high position in the life of our country. There are a number of lady ministry and
deputy ministers. Besides this, women are taking to the professions of doctors, nurse, teacher, lawyers, engineers,
judges, etc., in an ever increasing number. Today there are woman who are competent police officers. Now there
are woman in the military, navy and air force also. This clearly shows in which direction the wind is blowing.
Also Indians girls bagged two beauty crowns in 1994. sushmita sen won the Miss universe title and aishwarya rai
bagged the miss world crown followed by Pryanka Chopra. More recently, women have proved their mettle by
begging Olympic medals in Rio Olympics.
From the above brief account it is evident, that the place of woman in free India is becoming more and more secure
with the change of times. She can no longer be dominated and driven like dumb cattle by man. She is on the march.
She is now an equal partner in her family. Her future is bright.