Our Challenges

• First challenge now is to quickly revert to 9

percent growth and then aim for double digit
growth; need to make recovery more broad
based
• Second challenge is to make growth more
inclusive; have to strengthen food security
• Third challenge is to overcome weakness in
government's public delivery mechanism; a long
way to go in this.
 Banking Dilemma
• Apex level financial stability council to be set
up for banking sector

•  Indian Banking Association to give additional

licenses to private players.

• Provision for further capital for  Regional Rural

Banks (RRBs).
• 16,500 crore to Public sector Undertaking (PSU)
banks so as to maintain their Capital Adequacy
ratio (CAR) in tier 1 (8%)
• Nothing for re-capitalisation of Indian banks(non-
performing assets (NPAs))
• Formalize a symbol for the Indian rupee
• Foreign investment reform usher in more funds to
the financial services industry
• RFID Banking Scenario (Radio Frequency
Identification)
• Extend repayment of the loan amount by farmers
from December 31, 2009 to June 30, 2010. 
•  Interest rate subsidy of 1% for home loans less than
10L (on property less than 20L) to continue for 1
more year.
• Farm Credit is being raised to Rs.3,75,000 crore
from Rs.3,25,000 crore.
• Swavalamban initiative –government contributes
Rs.1,000 per year to each New Pension Scheme
(NPS) for 3 years.(Unorganised Sector)
• Loan Waiver scheme, is entitled to a waiver of 25
per cent of the amount due, on the condition that
he repays the remaining 75 per cent.
•  Rs.1,900 crore for Unique Identification Authority
of India
Threats Opportunity
• Large Competition • Increased Employability
• RURAL GROWTH
• Recession • New Investment Products
• Faster processing
• Inflation • Low cost Working capital for
companies.
• Liquidity Crunch • Price War
• Easy Availability of Loans
• Unethical Practices • Mergers & Joint ventures
SWOT Analysis-After Licensing
Weakness Strength
• Small players will be wiped • Efficient Financial Sector
out • Safe Money
• Well Regulated Sector
• NPAs • Technology
• Customer Service
• Lacking Quality Service in
PSUs • Large customer base
• Backed up by huge funds
• Excess Liquidity
 Norms/ Hurdles for Licensing
• Open branches in the rural areas for the first
two years.
•  Spread will depend on the basis of their direct
lending to agriculture sector, opening of no-
frills accounts
• Setback for companies such as Reliance
Capital, Mahindra, Cholamandalam and Tata
Finance Norms a setback for new entrants