Decisions

When decisions have to be made, it is good to consult someone. The criteria for selecting the people you would consult may depend on 1. their knowledge about the relevant affair 2. their experience in that particular area or in making decisions 3. the extent to which they may be affected 4. just because they are close to you and you think that they would think for your best. During some decision making points, it feels good if there is someone who can take that decision for you. However, you should realize that it might not always be in your best interest.

There are some parents who ask me the field in which their children should do their education. The first thing I tell them is that it all depends on the field in which the youngster is interested. To my dismay, that is the last thing they had been expecting out of me. They have 2-3 areas in mind and wanted me to select one for them. They had given least importance to asking what interests the person who is getting educated. I understand that it may not always be possible for someone to identify his/her area of interest. However, I believe a little more thought is required.

So, if any student talks to me about his education, one of the things I tell him/her is to try to chalk down (as he/she progresses in their academic career) the area you would like to focus on for further studies and career. I believe that if someone approaches education with this at the back of the mind, the chances are higher for being able to identify one’s interest. What happens normally is that one is forced in a particular area (for various reasons). Students don’t know what they would like to do and so abide by what is being forced. Students sometimes get to know what they do not want to do, which I think is a step in the right direction but there is still that extra mile to go.

It has happened a lot of times with me that whenever some decision needs to be taken, things happen in such a fashion that automatically whatever is best for me happens (or so I feel). It happened at least twice in the last term and I firmly believe that there is someone who knows better than me about what is good for me.

Living the issues

I went to this bank to make a demand draft. I knew that my father knew the manager of that branch and so I directly went to him for the work to get done. While the draft was being made, he was talking to me about a few things. Before I go into that, I must say that I have come across many people from south India who are very sincere about their work. They try to give their best even under various constraints.

The manager was speaking about how he is trying to motivate his employees to give the customers a good service. He said that he asked his employees to greet the customers with a smile, but somehow they have forgotten to smile. I have observed that the manager himself keeps on smiling and he also confessed about it. He wants to pass on this habit to the bank employees (at least for the time they are in the bank), but says he is yet to achieve much success.

The bank being a public sector one, there is limited threat of job loss. Given that the employees know of the security they enjoy, there is hardly any reason for them to put in any extra effort. The manager says that he is facing this huge problem since there is no fear among the employees for he cannot take any action against them. I do not think he can even get them transferred. In fact, I have seen that it is the manager of the branch that keeps on changing rather than the employees.

The manager said that if it was a private sector bank the case would have been completely different. There is little job security in a private enterprise. Also, unlike in a private bank, in a public sector bank, there is no differentiation being done among the performers and the laggards – another factor which contributes to the issue of lack of any incentive to perform. He says that if the bank comes up with a VRS scheme, the best performers will take the opportunity to leave the bank. Also, that even if he is able to get rid of the laggards, the new bunch of people who would join would be no different. Hearing all this I remembered my Human Resources course form earlier term where we used to discuss similar issues.

He says that whenever he comes from his meetings with the higher management, he calls a meeting of his branch employees and tells them about their message. The message can be summarized in what he says is something his boss tells, ‘In this market, just to remain at the same place, you need to run the fastest you can’.

Unfortunately all this falls on deaf ears. The manager told me that he is aware of the fact that there would be people who would be thinking that he keeps on repeating the same old stuff again and again. But he believes that the message needs to be conveyed regularly to emphasize and re-emphasize it. The market has changed for sure and the days of monopoly of banks have gone for good. People are ready to pay higher fees for convenience and hospitality. And private sector banks are literally banking on that.

Things have improved considerably in this particular branch I am talking about. I remember a time few years back, when I used to tell my parents that I would not go to this branch come what may. At the same time I was ready to go to another bank’s branch a little further away for reasons I have mentioned above. That is no longer the case, but there is still a long way to go before, the manager’s vision at least seems plausible.

Technology

In continuation of my previous post, some more cartoons.

Computers

These are some selected cartoons related to computers which I like. These remind me of the days of my under graduation when my language, as well as that of some of my friends, had become entrenched in computer related jargon.

Long time No SWF

You must have heard how sovereign wealth funds (SWFs) all over the world are busy buying stakes in various companies. These funds are making use of the current turmoil in the global markets to their advantage. So, for companies who are in dire need of capital infusion, these funds come as saviours and flush them with cash, in the current state of credit crunch. They call them “passive” investments, but I believe “strategic” would be a more appropriate word.

Some such companies who have sold their stakes are investment banks. They are bleeding due to the subprime saga and the ensuing credit crunch is affecting them more than any other set of companies. As such they are taking all steps possible to retain their credibility, from firing CEOs to gathering funds. Various SWFs have lately taken stake in a number of such ailing banks. You get the details from any news source. And those who have not (like the Kuwaiti SWF) are planning to do so soon.

I believe it is high time that India has its own SWF. So, from the vast forex reserve of more than $270bn, India can set aside, say $50bn. Even after doing this, various ratios like Import cover (in months) etc. will still look favourable. This money can be used for buying “strategic” stakes in some companies. For example, may be an ailing investment bank that is left to sell a share. Or invest in a upcoming technology company, which would also be in line with the image of India in the global arena.

The main idea behind suggesting such measures is that the money needs to be put to a more productive use. Previously, there were suggestions about using some of it for investment in infrastructure. Again the essential idea remains the same. The argument given is that there is enough money available for infrastructure investments (through loans etc.). If that is the case, employ these funds to some other place instead of investing them in U.S. treasuries.

The whole loan argument can actually be slapped in the face of those who argue. Firstly, as you would know, more than 21% of the government’s income goes in paying the interest on various loans which have been taken (majority of this loan is domestic). Instead of relying on more foreign loans, the reserves could be used to repay these loans so that some burden of the interest payments is shed.

Anyways, much has already been written about the needs of a SWF (and in general, about more productive use of the reserves). What I am hoping for a business daily to have its headlines as “Indian SWF acquires x% stake in ABC company”.

How to get your rank certifcate for IIT JEE?

Though I generally keep all my important documents (certificates, identity cards etc.) safely and am not that irresponsible as to have no idea about their location, this time I was in a pickle. I got to know that going forward, I would require proof of everything that I want to include on my CV. Though this requirement always remained at the back of my mind earlier as well (for e.g. when I was to undergo my campus placements, I tried to make sure I have all relevant certificates for the interview), this time there was to be formal checking of these before I can present my CV to anyone and that meant you cannot leave anything just like that on the CV.

The first thing which I was asked to make sure was that I have a proof for the rank I secured at the entrance examination for my under graduation. I think the reason for this to be the first issue was that it was important and that many people would have faced the issue of not having such a proof and these people would have gone through a lot to get it, if they at all managed to do that. The importance of the matter increases with the reputation of the alma mater.

So, began my tryst to get my rank certificate. The IIT in which I studied was the first point of contact. As it would be a while before I could go there physically (it was in a different city from where I was working), I asked one of my friends who was in his final year there to ask the concerned officials about the process. After going through a few offices and meeting some people, he was told that since the exam was not conducted by that IIT for the year, they cannot provide any such certificate. First fort lost ... not yet!

I tried to contact my alumni cell and see if they could help. I also mailed directly to the officials asking help. The cell tried to help but could not go very far. The officials gave me an argument similar to the one they gave my friend. I tried to call them and convince but again no use.

Next stop was the IIT which conducted the exam. I was a little skeptical about getting any success. I started with sending a mail to the concerned office of the IIT to issue me a certificate explaining the issue and giving my details. I was not too sure if I could even get a reply. At the same time, I came to know that one of my friends' father is a Professor in that IIT. I also gave him the details and requested him to ask his father to push for the matter. He was kind enough to agree.

I received a mail next day wherein the concerned office asked for my email address to send the certificate or gave me the option of collecting it from them in person. Now, this thing happened because of my friend's father's efforts or otherwise, I had not expected success, at least so fast. I was in the same city and so replied back saying that I would collect it from their office the next day; thanked them as well. The IIT was close to my office, so went the next day and collected the certificate. It was kept all ready to be handed over.

Now that this rank certificate was safe in my files, I started to arrange for the proof for the next point on my CV. My only suggestion to everyone: Please take good care of all your certificates etc. You never know when they would be needed.

Sustaining growth

One of the roadblocks or areas of improvement which is being seen in India’s growth is the financial sector. It is argues that much needs to be done for the development of this sector and that reforms in this sector is one of the essentials for sustaining the Indian growth story. I have read some reports on the outlook for India from various sources and no one has failed to cover this topic extensively. They have given quite a detailed view on how things should progress and what are the milestones involved.

I am not too sure about all their recommendations and whether they would be helpful or detrimental for the country. But I agree on the broader issue of the need for newer policies for the financial sector. And I also believe that things are being done, though one can argue on the speed and amount.

I think SEBI has been playing its role rather well in this scheme of things. I keep on hearing newer guidelines being issued with respect to various market participants at regular intervals. Be it the issue of independent directors (Clause 49) or that of the participatory notes (P-notes), it has been bold and has done things keeping in mind the long term sanity of the market. I appreciate their initiatives as much for their intention as for the fact that such bold moves are not very frequent in a country like ours.

They have recently come up with a rule regarding insider trading. Not going into details, I suppose that they have taken a preemptive step. One thing to note here is that there was no urgency to do anything on this issue. Any urgency is felt only after a market scam related to the issue happens. However, according to the NSE Factbook, more than half of India’s equity shares are held by corporate insiders. As such, I think what they are trying to do is address as many issues as possible without actually somebody feeling an immediate need.

By doing this they are essentially dealing with two macro topics. One is to avoid having this Bull Run end with some kind of a huge scam, just as it has happened previously. Second is that SEBI wants to do its bit for ensuring that the rise of the financial sector continues unabated. A special mention for SEBI’s chairman M Damodaran is necessary for a lot has happened during his tenure.

Finally, some food for thought (sent to me by a friend)

Indeed, our measurement of GDP and poverty looks absurd when we consider matters of life and death. If a young couple has two children, per capita income is halved. That shows up statistically as an economic disaster that possibly pushes the couple below the poverty line. Yet, the couple will feel doubly blessed by their two children, not impoverished at all.

If on the other hand, the couple owns a cow that gives birth to a calf, statisticians will record that as a jump in their income. Our conventional way of measuring GDP per head regards the birth of a calf as a blessing, but the birth of a child as a tragedy. Further, the death of a calf is a tragedy (since it reduces measured wealth) but the death of a child is a boon (since it raises income per capita). How farcical!

http://timesofindia.indiatimes.com/Opinion/Columnists/Our_greatest_achievement_longer_lives/articleshow/2291641.cms

Poems and more poems

I have somehow got hold of some writings of my seniors. These are not my immediate seniors but those who have passed from the institute 2 or 3 years back. These writings had been a part of some of the notice boards (or NBs) during the time they were in campus. And I would say these are amazing. And quite different from what is prevalent these days.

There are poetries and prose and quotes. There are instances when late at night people have started fighting. But the fight has all been poetic. Within minutes people have produced such good poems (with rhymes) and others have replied (again within minutes and with rhymes and decently long). And there are those who are mediating again in rhymes. Further, there are people who took this as an opportunity to pen down their first words. I wonder if I could at some point gain that skill of writing sense fast as per my will. But for now it seems a task uphill.

There are instances when people have started taking each other’s cases. And there are instances when people are just looking for some sympathetic braces. Even the birthday managers have gone a little far, and have written the invites with poetic bar. There are also small stories, true or otherwise which seem to be so generic that it can happen to anyone. Obviously, there are some particular people whose name keeps on reappearing as authors of the writings. I wonder where are their counterparts in our batch and when will I be able to relish such a thing happening live.

I have never written anything but am planning to write a few things going forward. The rhyming part is a little difficult but I think as I move along that would become easier. Something I wrote yesterday...

Satisfied with my academic performance till then

Came here to strengthen

Other aspects of my being

Some of them I hopefully will be seeing

For the first time and will wonder

Where were they hid down under

Have learnt much from this place

About me and the surrounding space

Occupied by people of different kind

Overall good experience in hind

But am far from doing any justice

To various things I can practice

In the small time that is left

Will try to further heft

Myself from the mortal being I am

Have an immortal state to gam

Before the last days are very near

For then there should be no regret or fear

Ravishing

I have been eating a lot lately. This I am saying as compared to what I used to eat only some time back. So, in my first term, I used to have a “normal” diet. And by normal I mean, similar to what people here have on an average. But now I am definitely above the average. I believe that there come phases in your life such as these. Phases in which you sleep a lot or else you can do on very little sleep, others in which you eat a lot, and some others where things happened rather differently.

Here at my institute, I have a common mess for all students. In the morning, just before the first class, there is hardly enough time to grab something. So, I generally take two bread slices and a cup of tea and proceed towards the class. But having said that I eat a lot, you don’t think I would be satisfied with that kind of breakfast. So, as soon as the first class gets over, I and some 15 others of our class run to the mess to have our remaining share (many of these have not had anything since morning).

My friends keep teasing me about how much I eat. They say that I eat breakfast thrice. Just after waking up I run to the mess, according to them. Then after having my first helping I go back to my room to do my daily chores. Then have my second helping just before class and finally the third helping after the first class. The 15 other people that I talked about before are those which regularly use the first break for their breakfast. This number grows or diminishes depending on the time the first lecture gets over and the menu in the mess.

There was a time when both my neighbours (in the class) used to go to the mess and I did not, even though they asked me to come almost daily. They would say just come once and I would think of the distance to travel and wonder why these people went. And here I am. One of the things I enjoy in my daily schedule is that run to the mess after the first class. Yes, I do actually run and much more than the breakfast that is the real fun. I would say that a person has to go for the breakfast after the first class only once and then he would never look back.

The anticipation and the excitement builds as the class is about to end. As soon as the last words are spoken, some 10 of us (who have already been at the edge of their chairs) stand up and start moving (The others are more civilized and slowly follow). Some of these had been asleep all time long and had asked their neighbours to wake them just 2 minutes before the class is to end, for they did not want to lose any of the precious seconds. The experience for me is so good that when we do not have the first lecture and you have enough time to eat your breakfast, it does not feel complete or as much satiating.

So, on days when I know that the first class will be stretched and there would not be enough time to go to the mess, I do my breakfast early. But everyone is cursing the reason for the delay because it either made them wake up early or they had to miss their breakfast entirely. But my reason for cursing is that it has denied me of that joy or experience which I so like.

Probably, I am trying to find happiness in small little things. But one thing I realize is that you never know what will make you happy. I remember one of our lecturers telling us that people find happiness in the smallest of things, and we students have become such that unless we get that insanely paying job, we won’t shed a smile.

That one thing

Many a times it happens that, you might do all your daily work and whatever is expected of you, but there is that one thing which happens daily which you like the most. You wait for it the whole of 24 hrs; do all other things just so that you might reach that point in the day when that event happens. I am not sure how many of you have experienced this feeling but it seems to be something good.

That event may be playing something, doing voluntary work or just a plain walk. But that is something you like to do so much that the work to be done for the other time of the day looks bearable. Just the expectation of the event happening can be a big motivator. So, sometimes even if the actual event does not happen, you get sad. But then you realize that you have to just wait for another 24 hours and it will again be your favorite time of the day. The build up to the event has already given you such pleasure that half your sadness is already compensated for.

Switching topics, why is that you want to do things which some people tell you to do? While at the same time, you are indifferent to some other people. This thing is even more prominent when the motive of the other person is your benefit. And in no apparent way the other person is going to benefit. So, if someone (say, one of your parents) says to take care of your health, you want to do that just for that person. Knowing that someone cares for you makes you feel that your life is worth something.

I have mentioned previously of visiting a particular place in my institute. Actually, I did that quite frequently in the initial months when I came here. I would say it helped me a lot. I am beginning to believe that I would not have to visit this place again.

Good and Bad times

It is said that it is easy to find people to share joy than to share sorrow. So, generally when we are in a neutral or happy mood, we are surrounded by a bunch of people. The size and constituents of the bunch may keep varying but you will almost always be able to find such a bunch. There are people who make you laugh, who accompany you in parties, who dance with you, sing along or generally hang out. In good times, you pick and choose people you want to be; those that make your experience the best.

But good times may not last for long. At the first stroke of sorrow, your accomplices support you at the start. But then two things happen: they start to taper off or you do not find yourself in a position to ask them to stay for long. At that instant, either you want to be alone or you want to be with someone with whom you can behave in any fashion and can expect whatever comes to your mind. This person would be willing to listen to you for hours together, would not mind any of your actions etc. So, in bad times, you again pick and choose but the choices may be too limited to be actually called one.

Firstly, it is very difficult to find such a person. If I think how many people belong to this category (apart from family), I can count them on my fingers. Sadly I am not even able to go to my second hand. But the amazing part is even though you have so few of them, you take them for granted. So, usually, when the going is good, you are not very much concerned about them. You consider these people as one of the many who you want to be with, if not below in your priority list. You forget what they have done for you and the fact that you would not have been in this position, had it not been for them.

Even after all this, the best part is, these people have not gone anywhere. So, the next time you are in grief, they are still there, ready as ever to do what they do best. If that was not enough, they are unconcerned to the core for what you did or things you should have done. They did not expect those things to happen anyways. I wonder what these people do to be like they are.

Failure

Success is good. It is easy to handle or at least it seems easy to handle. But I need to learn to handle failure. A lot of emphasis has been laid on the various learnings from failure. However, the entire experience is quite dramatic. You feel that you won’t be affected, but you are.

So at my institute, I would say I was very well placed in terms of the number of opportunities I had after the initial round. I interviewed with a couple of companies and the results were not immediately disclosed. However, once I got the first result and that to a rejection, the sadness was clearly felt. I have written this an hour after the rejection. The sadness is dying down and now as I reflect, I am wondering if I was justified in actually being sad. If I get sad, I think I would be asking too much for remaining happy all the time. There are many who have just only shot where I have so many.

Thankfully, I had a very good friend who cheered me up. This friend was kind enough to listen to me and talk to me which helped a lot.

Not that this rejection was the end of the world for me, but somewhere subconsciously I was looking forward to getting a positive response. All the indications were towards that but finally what happened was not what was being indicated. Anyways, now I am over that (though not completely).

Now, something entirely unrelated but things which I found interesting …

Option-writing has been described as “picking up nickels in front of steamrollers”. This is in relation to the fact that it is a contract in which you can lose more than you have invested.

Booking losses at the right time is one of those qualities which are not easily found among people in general. People tend to get attached to their investments. So, even if the value of the investments is decreasing consistently, they keep hoping that the next bounce back is just around the corner. For all they know, the movement may be along a circle. A good quote pushing the idea of booking losses in stock markets or any other financial markets

“Stocks don't know you own them. You can sell them and they don't care."

- Craig Effron, a hedge fund veteran (taken from Bloomberg News hedge fund reporter Katherine Burton's book ‘Hedge Hunters’).