India Post may not get a Banking Licence

Where Financial Inclusion matters the most- India Post as a bank is the best alternative with the Government but India post may not get a banking license as Mr. P. Chidambaram has not earmarked any funds in the interim budget for India Post as a Bank.

The long-cherished dream of the Indian postal department to float a commercial bank, has hit a major hurdle, after the government stopped short of providing the necessary capital needed for the department to enter India’s Rs.83 trillion banking industry.

The interim budget announced by finance minister P. Chidambaram on Monday didn’t earmark any funds for the postal department, nor did it mention the proposal in the budget, even as the Reserve Bank of India (RBI) approaches the final stages of granting licences to a third set of private banks in Asia’s third-largest economy.

India Post is one among the 25 applicants in the race for a banking licence. Major business houses in the race include Reliance Capital Ltd, Bajaj Finserv Ltd, Aditya Birla Financial Services Group and L&T Finance Holdings Ltd.

An expert committee under former Reserve Bank of India (RBI) governorBimal Jalan is currently scrutinizing the applications and is expected to make the final recommendations to the central bank by March. RBI will then issue licences based on the recommendations.

This is a clear signal that the Congress party-led United Progressive Alliance (UPA) government is not keen to allow the postal department to become a commercial bank, said a bureaucrat at the government. He requested anonymity citing sensitivity of the matter.

“Since the interim budget is silent on this proposal, it is very unlikely that the cabinet will give its nod and provide capital in the next three to four months, by when the government’s term comes to an end,” said the official.

General elections in the country are due by May.

While the interim budget is silent on postal department’s banking plan, it has earmarked over Rs.4,000 crore for the department to expand its technology platform. But this is unrelated to the banking plan, the official said.

Recently, RBI’s external committee scrutinizing bank licence applications had sought the necessary cabinet approval from the postal department to go ahead with the banking plan. This is because the department is a division of the government and, technically, government will be the promoter of the proposed Post Bank of India.

But the cabinet is yet to approve the plan.

The postal department estimated a capital requirement of Rs.1,900 crore for its entry into the banking sector and for a roll-out of business in the subsequent years.

As per RBI’s guidelines, new banks need a minimum capital of Rs.500 crore initially, and a business road map to promote financial inclusion.

According to the official cited earlier, RBI is convinced about India Post’s track record and has sought no additional details or documentation, other than the cabinet approval.

Cabinet approval and capital preparedness are, thus, critical factors for the department to secure a nod for a banking licence. In the absence of this, the postal department may have to forego its plans for a banking licence, at least in this round.

Difference of views

The finance ministry has been opposing India Post’s banking plan, arguing that the postal department doesn’t have the expertise needed to become a bank, such as experience in handling credit.

Besides, the Planning commission, too, had informally expressed its reservations on India Post’s banking entry, citing broadly the same reasons.

But, India Post argues that it can significantly boost financial inclusion through its nationwide network of 155,000 post offices.

Unlike in previous instances, when RBI licenced new banks to introduce competition in the banking sector, this time around the primary objective of the central bank is to promote financial inclusion.

Currently, India Post is engaged in several related functions, such as running a savings bank scheme, selling tax-saving instruments and accepting public provident fund deposits.

The government also uses post office accounts to route payments to beneficiaries as part of the rural jobs programme and the direct transfer of subsidies.

Postal department’s aspiration to float a bank is two decades old, but the department got serious about it sometime in 2006, conducting internal viability studies and seeking the opinion of consultancy firms.

The move gathered momentum when RBI announced final licensing norms for new banks in February.

“More than the absence of mention (of India Post’s banking plan) in the interim-budget, what is a bigger process (necessary for them) is to get the cabinet approval for the proposed post bank,” said Abizer Diwanji, partner and head of financial services, EY India.

“The postal department has vast experience in deposit taking and has the trust of the people. Its entry into banking will certainly help to push financial inclusion in the country,” Diwanji said

Source: Livemint.com

Mumbai Dabbawallas: A case Study

MUMBAI DABBAWALLAHS

The British public was not too happy with Prince Charles’ marriage, but Raghunath D. Megde, leader of the 5000- strong Mumbai dabbawallahs, was kicked: ‘Yeh hamare yaar ki shaadi hai’. Camilla Parker Bowles had a wedding present from India no member of the British royalty has ever had. So what if she has to be content with only being called Her Royal Highness the Duchess of Cornwall, and at best Princess Consort, if her husband ascends the throne. In her gifts, she found a traditional chhavvari (six yards long) Maharashtrian silk sari and a matching blouse- probably green in colour. Her husband was not overlooked either- he got a traditional pheta (turban). These were gifts to the couple from the dabbawallahs of Mumbai. Raghunath D. Medge and Sopan Laxman Mare, leaders of the 5000- strong Mumbai Dabbawallahs (Nutan Mumbai Tiffin Box Suppliers Charity Trust, the organization that runs this service), were two special invitees of Prince Charles. The Prince remembered the Gifts they sent on hearing of his wedding and was touched by their sentiment. The Queen told Medge she knew about the Tiffin-carriers of Mumbai from TV and newspapers while Prince Charles said it was nice of them to come and then added to convey his greetings and good wishes to other members.

No wonder Medge said at the end of the wedding, ‘We will never forget the attention we got from Price Charles. Now we are being given attention by our own VIPs back home too.’ He added,’ we felt like being in a fairyland at Windsor. It was like a dream, spending time at a 900-year old castle and treated equal to Dukes, Duchess, and other dignitaries. We are grateful to him as we said in our wedding greetings card ‘thank you for enlightening the life dabbawallahs’. The dabbawallahs’ tryst with Prince Charles started in 2003, when he was on a visit to India. Medge was elated by Prince Chales’ visit. ‘We are glad that this ‘raja of England’ is interested in our work. Tragically, no leader of India has ever inquired about our work and our troubles,’ he said. Medge and the organization’s secretary Gangaram Talekar, garlanded the Prince, placed a shawl on him, and offered him a white Gandhi cap which he politely declined to wear. This brief ceremony took place in the premises of the Western Railway Headquarters, Opposite Churchgate station in south Mumbai. Medge and Talekar then explained the intricacies of their business to the Prince, showing him a long rectangle tray that carries up to 40 boxes. They explained how the boxes that are collected from various houses in the suburbs are sorted and sent to specific stations, where they are sorted to be sent to various offices. Explaining the rationale for the Prince’s visit to the dabbawallahs, a British High Commission official said the idea was to show him something that was unique in Mumbai. ‘I don’t think any other city anywhere in the world or even India has such a system,’ she said, adding, ‘also, the Prince of Wales is always keen to meet people, so we felt this would be ideal.’ Back home, after the wedding of Prince Charles, these leaders of the dabbawallahs are getting similar attention. Medge, who was invited at Chennai to receive the ‘Lucas TVS NIQR’ Award, received a standing ovation in Le Royal Meridien. After receiving this award from the National Institution for Quality and Reliability, he said ‘it is surprising to note that after doing business for more than 100 years now, our model of enterprise had become a global case study for MBAs and PhD students.’ Their business model had caught the attention of even the hallowed ‘Forbes.’ The American business magazine conferred the ‘Six Sigma’ plus rating on Dabbawallahs, meaning only one error in six million deliveries, alongside the likes of GE and Motorola in terms of efficiency and quality of service. Their modus operandi too has been well documented by the likes of BBC and Dutch and German film makers.

There are close to 5000 dabbawallahs operating in Mumbai City supplying 1,70,000 dabbas every day. Their operations are so complex that if even one thing goes out of place, it would lead to chaos, so much so that even when Prince Charles came to visit them, they did not delay their operations. A lot of people believe that the food dabbawallahs deliver is also cooked by them. In reality, they only deliver food to the people of Mumbai which is cooked in the home of the people by their wives, sisters, or mothers. The Tiffin box that the food is delivered in also belongs to the customer. Dabbawallahs have a unique colour coding system that they put on the boxes. Their ancestors started by first using coloured threads. Then they switched to using pieces of cloth and now dabbawallahs use oil paint and symbols. The first colour symbolizes a ‘group’. A group comprises 10 to 20 people who service one station. Just like a cricket team there are a few substitutes in case someone falls ill. Each group picks up about 40 Tiffin’s from their area and delivers them to the local railway station. There they are sorted according to their destination. The alphabet written on the Tiffin box stands for the person who collects the Tiffin’s from the house, and the number is for its destination. From the Six Sigma point of View, the dabbawallahs get complaints of someone’s Tiffin getting mixed up or lost. It happens only once in a month or two when they get a complaint. On following up on the complaint they generally find that it was stolen by a hungry beggar. They then keep a lookout for it in the market and on spotting it buy it back and return it to the rightful owner. Dabbawallahs claim that they never misplace anything due to any confusion on their part. It obviously is a puzzle for many who wonder how they have managed to reach such levels of efficiency with such untrained work force. Megde says, ‘It just depends on hard work and sincerity, only when you fly high can you reach the stars. The uneducated have an ability to memorize and retain more as opposed to the educated who are used to writing down everything. ‘ Dabbawallahs charge Rs. 250-300 per month from a customer. That includes picking up the Tiffin from home, delivering it to the office, and then returning the empty Tiffin back home. Every station on Mumbai’s Western, Central, and harbor railway lines has two groups ranging between 15 to 40 people. ‘All of us are entrepreneurs who come together to deliver as a hub and spoke operations, ‘says the 63-year old Jairaj Surve, a dabbawallah. The meals picked up from clients by 9-9:30 a.m. are brought to closest railway station. Numbers and symbols painted on the aluminium cases help to sort out next hour, they are loaded in trains and taken to their destinations, where they are once again sorted out on the basis of office, street, and floor. Even as the dabba is picked up from a client’s home and delivered by one person, it is delivered and picked up from the workplace by another person. It goes through 3 to 4 hands before reaching its destination. Till 1980, it was a worker-employer relationship, whereby there used to be a contractor who would employ 20-25 workers under Datta Samant which lasted for 20-22 days, caused huge losses for the dabbawallahs. Their losses were further compounded by the mill strike. This made them wonder what would happen if their workers were to go on strike. This was the reason that every worker was made a shareholder. This way they put in more effort and since everyone is a shareholder, there is no question of a union. There are elections for the post of the president of the trust and the person getting majority votes becomes the president. There is a show of hands and the person getting the most hand wins. There are disputes between dabbawallahs at times, but they are settled on the 15th of every month by the Panch Committee. Dabbawallahs have their own mini-Government which levies a fine on the workers for making mistakes like not turning up for duty or drinking alcohol while on duty. No dispute has ever reached the police of the courts.

POSTAL LIFE INSURANCE IS THE BEST INSURANCE POLICY:

Strategy for Selecting the best Insurance Policy in India:

One really feel irritated when an executive from an insurance company calls you and say, Sir, “We have got the best Insurance Policy for you.” Some people do fall prey to these executives and buy the policy as they are convinced that it is really the best for them. The reality is that the agent after selling policy fleeces away with his percentage of commission and the buyer is left handicapped with the obligation to pay the future installments.

Presently, Postal Department do not offer ‘Unit Linked Insurance Plans’ (ULIP) but the plans offered by the department is the best in the competitive insurance market. Even India’s major insurance player – Life Insurance Corporation do not offer such competitive insurance products as offered by The Department of Posts.  Comparison can be seen from the following table:

	POSTAL LIFE INSURANCE			LIFE INSURANCE CORPORATION
Years	Total Premium Payment	Maturity Proceeds*	Returns p.a. (%)	Total Premium Payment	Maturity Proceeds**	Returns p.a.  (%)
5 Yr	103200	135000	9%	113580	117000	1%
10 Yr	100800	170000	9%	111840	134000	3.3%
15 Yr	100800	205000	8%	109800	159000	4.5%
20 Yr	96000	240000	8.1%	106080	204000	5%
25 Yr	96000	275000	7.0%	105300	280000	6.9%

http://economictimes.indiatimes.com/slideshow/4685488.cms

$This table is for endowment policy with a risk cover of 1 lakh.  * Maturity proceeds of PLI is sum assured (SA) + Accrued Bonus during policy years; **Maturity proceeds of LIC is sum Assured + Terminal bonus, if any.  #Reversionary and terminal bonus rate may vary according to the maturity period and sum assured. The bonus rates announced for FY08 are considered here for calculation purpose. It may change in coming years. Source: LIC and Post Office India - http://economictimes.indiatimes.com/slideshow/4685488.cms

Postal Life Insurance (PLI), a 125-year-old life insurance scheme run by the department of posts, is a good option for people eligible for it as it charges lower premiums and offers higher returns than comparable policies of life insurers.

The policy, started in 1884 for the employees of Posts & Telegraphs Department, has since been extended to cover all central and state government employees and those working in staterun companies, or about 70% of organised sector employees in the country. In 1995, the department launched Rural Postal Life Insurance to take the benefits to all villagers who account for 60% of India’s population.

It offers better returns than other comparable products. For example, Postal Life Insurance has announced a bonus of Rs 70 per Rs 1,000 sum assured on its endowment policy – where the insured gets the sum assured plus annual bonuses when the policy period is over – irrespective of maturity since 2003.

In contrast, average bonus announced by the Life Insurance Corporation (LIC), India’s largest life insurer, for endowment policies was in the range of Rs 30-48 in past five years.

Let’s take the example of a 30-year old government employee.
If he buys PLI’s endowment policy called Santosh for risk cover of Rs 1 lakh for a period of 20 years, he will be paying a premium of Rs 400 every month. For a similar policy offered by LIC, the Endowment Assurance Plan, the monthly premium is Rs 442.

At the time of maturity, after 20 years, he will receive a total of Rs 2,40,000 at the current bonus rate of Rs 70 per Rs 1,000 sum assured. His net earnings, if subtracted total premium paid during the policy, will be Rs 1,44,000.
In the case of LIC Endowment Assurance Policy, the proceeds could be Rs 2,04,000 (sum assured + accrued bonus + terminal bonus) at the current bonus rates.
The rate of reversionary bonus is Rs 42 per Rs 1,000 sum assured, while terminal bonus is Rs 200 per Rs 1,000 sum assured. Thus, the net earnings in the LIC scheme will be much lower at Rs 98,000.

The next obvious question is its tax treatment. Investment in PLI gets all tax benefits any life policy is entitled for. The returns are tax-free and premium payment is subject to tax exemption under 80c.
A policyholder can pay the premium at any post office across the country. Some selected government departments have the facility of recovering premium from salary. But it is better to take a premium passbook.
Postal Life Insurance, however, is not for investors who are looking for new-age products like unit-linked insurance policies (ULIPs) and pension plans. The postal department offers six plainvanilla plans: Suraksha (whole life assurance), Santosh (endowment assurance ), Suvidha (convertible whole life insurance), Sumangal (anticipated endowment assurance), Yugal Suraksha (joint endowment) and Children’s Policy.
These policies just offer death cover while LIC and other insurance companies
offer accidental death benefit with extra premiums. So, if you are interested in a simple kind of Insurance plan and if you are eligible for it, then Postal Life Insurance is the cheapest and the best.

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STRATEGY FOR SELECTING THE BEST MUTUAL FUND:

How to select the best Mutual Fund?

People normally, just see the return by a fund to select the fund to invest but there are number of things one must take into consideration to select the best fund to invest in. Also, some do check out some of the popular websites to see the best performing fund and blindly invest in the same. However, investment in mutual fund altogether requires different parameters that are needed to be analysed and then implemented. I feel and differ with some of the Financial Planners, who suggest that one should invest in a fund that has given proven returns and the one that is old enough.

I strongly believe in Dr. Manmohan Singh’s statement that  “Nothing can stop an idea – whose time has come”. Similar story here and I think one should change before change rather than change with the change or change after the change. Yes, one who is reading may feel perplexed and confused but I am talking about Aggressive Mutual funds and the funds who are thematic in nature. I am a strong critic for those who believe investing in old mutual funds which has given proven returns. Though I do consider, the funds which have constantly given good or decent returns have greater chances to give the same returns in near future and in long term future too. Anyway, my criteria for selecting a fund differs with other planners as I feel when selecting a mutual fund one should be long-long term investor, a Little aggressive and should know about the companies where the fund is planning to invest rather than being satisfied with the brand or the returns generated by the fund earlier.

Firstly, I want to make one thing clear that investment in mutual funds especially Equity funds should be done if you have surplus money and do not need the same in a few years time. Any investment in Equity fund or even in stocks requires patience and if you feel stressed and uneasy every day upon your decrease in the capital that you have invested, you are requested to please stay away from the Equity Market. 

Criteria for selecting a Mutual fund  OR  Ground rules of investing in Mutual Fund:

The world of investments too has several ground rules meant for investors who are novices in their own right and wish to enter the myriad world of investments. These come in handy for there is every possibility of losing what one has if due care is not taken.

Assess yourself:

 Self-assessment of one’s needs; expectations and risk profile is of prime importance failing which; one will make more mistakes in putting money in right places than otherwise. One should identify the degree of risk bearing capacity one has and also clearly state the expectations from the investments. Irrational expectations will only bring pain.

Don't rush in picking funds, think first:  One first has to decide what he wants the money for and it is this investment goal that should be the guiding light for all investments done. It is thus important to know the risks associated with the fund and align it with the quantum of risk one is willing to take. One should take a look at the portfolio of the funds for the purpose. Excessive exposure to any specific sector should be avoided, as it will only add to the risk of the entire portfolio. Mutual funds invest with a certain ideology such as the "Value Principle" or "Growth Philosophy". Both have their share of critics but both philosophies work for investors of different kinds. Identifying the proposed investment philosophy of the fund will give an insight into the kind of risks that it shall be taking in future.

Invest. Don’t speculate:

 A common investor is limited in the degree of risk that he is willing to take. It is thus of key importance that there is thought given to the process of investment and to the time horizon of the intended investment. One should abstain from speculating which in other words would mean getting out of one fund and investing in another with the intention of making quick money. One would do well to remember that nobody can perfectly time the market so staying invested is the best option unless there are compelling reasons to exit.

Don’t put all the eggs in one basket:

 This old age adage is of utmost importance. No matter what the risk profile of a person is, it is always advisable to diversify the risks associated. So putting one’s money in different asset classes is generally the best option as it averages the risks in each category. Thus, even investors of equity should be judicious and invest some portion of the investment in debt. Not all fund managers have the same acumen of fund management and with identification of the best man being a tough task; it is good to place money in the hands of several fund managers. This might reduce the maximum return possible, but will also reduce the risks.

Be regular:

 Investing should be a habit and not an exercise undertaken at one’s wishes, if one has to really benefit from them. The basic philosophy of Rupee cost averaging would suggest that if one invests regularly through the ups and downs of the market, he would stand a better chance of generating more returns than the market for the entire duration.

Find the right funds:

 Finding funds that do not charge many fees is of importance, as the fee charged ultimately goes from the pocket of the investor. This is even more important for debt funds as the returns from these funds are not much. Funds that charge more will reduce the yield to the investor. Finding the right funds is important and one should also use these funds for tax efficiency. Investors of equity should keep in mind that all dividends are currently tax-free in India and so their tax liabilities can be reduced if the dividend payout option is used. Investors of debt will be charged a tax on dividend distribution and so can easily avoid the payout options.

Keep track of your investments:  Finding the right fund is important but even more important is to keep track of the way they are performing in the market. If the market is beginning to enter a bearish phase, then investors of equity too will benefit by switching to debt funds as the losses can be minimized. One can always switch back to equity if the equity market starts to show some buoyancy.

Know when to sell your mutual funds: Knowing when to exit a fund too is of utmost importance. One should book profits immediately when enough has been earned i.e. the initial expectation from the fund has been met with. Other factors like non-performance, hike in fee charged and change in any basic attribute of the fund etc. are some of the reasons for to exit.

Investments in mutual funds too are not risk-free and so investments warrant some caution and careful attention of the investor. Investing in mutual funds can be a dicey business for people who do not remember to follow these rules diligently, as people are likely to commit mistakes by being ignorant or adventurous enough to take risks more than what they can absorb. This is the reason why people would do well to remember these rules before they set out to invest their hard-earned money.

Higher or lower NAV doesn’t make any difference:

Some of the investors have the tendency to prefer a scheme that is available at lower NAV compared to the one available at higher NAV. Sometimes, they prefer a new scheme which is issuing units at Rs. 10 whereas the existing schemes in the same category are available at much higher NAVs. Investors may please note that in case of mutual funds schemes, lower or higher NAVs of similar type schemes of different mutual funds have no relevance. On the other hand, investors should choose a scheme based on its merit considering performance track record of the mutual fund, service standards, professional management, etc. This is explained in an example given below.

Example: Suppose scheme A is available at a NAV of Rs.15 and another scheme B at Rs.90. Both schemes are diversified equity oriented schemes. Investor has put Rs. 9,000 in each of the two schemes. He would get 600 units (9000/15) in scheme A and 100 units (9000/90) in scheme B. Assuming that the markets go up by 10 per cent and both the schemes perform equally well and it is reflected in their NAVs. NAV of scheme A would go up to Rs. 16.50 and that of scheme B to Rs. 99. Thus, the market value of investments would be Rs. 9,900 (600* 16.50) in scheme A and it would be the same amount of Rs. 9900 in scheme B (100*99). The investor would get the same return of 10% on his investment in each of the schemes. Thus, lower or higher NAV of the schemes and allotment of higher or lower number of units within the amount an investor is willing to invest, should not be the factors for making investment decision. Likewise, if a new equity oriented scheme is being offered at Rs.10 and an existing scheme is available for Rs. 90, should not be a factor for decision making by the investor.

Rupee cost averaging:

Most investors want to buy stocks when the prices are low and sell them when prices are high. But timing the market is time-consuming and risky. A more successful investment strategy is to adopt the method called Rupee Cost Averaging. To illustrate this lets compare investing the identical amounts through a SIP and in one lump sum.

Imagine Suresh invests Rs. 1000 every month in an equity mutual fund scheme, starting in January. His friend, Rajesh, invests Rs. 12000 in one lump sum in the same scheme. The following tables illustrate how their respective investments would have performed from Jan to Dec:

		Suresh’s Investment		Rajesh’s Investment
Month	NAV	Amount	Units	Amount	Units
Jan-10	9.345	1000	107.0091	12000	1284.1091
Feb-10	9.399	1000	106.3943
Mar-10	8.123	1000	123.1072
Apr-10	8.750	1000	114.2857
May-10	8.012	1000	124.8128
Jun-10	8.925	1000	112.0448
Jul-10	9.102	1000	109.8660
Aug-10	8.310	1000	120.3369
Sep-10	7.568	1000	132.1353
Oct-10	6.462	1000	154.7509
Nov-10	6.931	1000	144.2793
Dec-10	7.600	1000	131.5789
Total		12000	1480.6012	12000	1284.1091

As seen in the table, by investing with an SIP, you end up buying more units when the price is low and fewer units when the price is high. However, over a period of time these market fluctuations are generally averaged. And the average cost of your investment is often reduced.

At the end of the 12 months, Suresh has more units than Rajesh, even though they invested the same amount. That’s because the average cost of Suresh’s units is much lower than that of Rajesh. Rajesh made only one investment and that too when the per-unit price was high.

Suresh’s average unit price = 12000/1480.6012 = Rs. 8.105 Rajesh’s average unit price = Rs. 9.345

Steps for Rupee Cost averaging: -

The primary decision to be taken by the investor is the amount he is going to invest every time. The amount should be chosen such that it will be affordable regularly over the long-term basis.

Then the investor should decide how frequently he is going to invest such as each month, each quarter, each six months.

The basic principle is the investment should be done without fail irrespective of market fall or rise.

The day-to-day fluctuations don't matter in this concept. Thus investor should have long-term perspective

Conclusion: -

The concept will be successful and profitable when the portfolio of investment is of many companies. The strategy does not work in case of individual stocks when the prices are on a downtrend. However, if the investment is diversified it is hardly possible that all companies are on downtrend simultaneously so this concept works on well-diversified funds.

The Festival of Lohri and My Strategies of Kite Flying

Its really an interesting experience to celebrate the festival of Lohri in Punjab. If somebody happens to be in Punjab, do celebrate the festival. Here I have tried to give a brief description how one celebrates ‘Lohri’. First of all the answer to everyone’s question about the reason why this festival is celebrated, It is celebrated in the memory of great rebel named “Dulla”, who looted wealthy landlords and imperial officers and distribute the booty to the needy. He also arranged marriage for the poor girl, who was a victim of a Zamindar’s atrocities. While he asked the couple to take ‘Pheras’ around the fire he lit ( Pheras is a tradition, which is done while the hindu couple gets married) along with he sang the song,
“Sunder Mundriye Tera Kaun Vichara ! Dullah Bhatti Wala Ho!
Dullah Di Teeh Viahi Ho! Ser Shakar Payi !”
Hence forth, it became a tradition to celebrate the occasion of Lohri.
This was all about the history of Lohri, really has given us a lot to enjoy and celebrate.



But I, myself is more concerned about Kite Flying. Kite Flying, the origin and the place where people have started flying kites is all the history. The dawn of Lohri for me is as beautiful as the dusk. I really do not know about the other cities or towns which experience the exciting scene of Kites all around the sky on some other occasions but here in Ludhiana, flying Kites on the auspicious occasion has its own charm. With the first sunshine, you will see hundreds of Kites in the sky. Almost every individual stands on the top of their building, with some beautiful Kites and roll of thread in their hands. As the day begins the competition starts among themselves. Each individual tries to prove that his thread is more sharper and stronger. Almost everyone is busy in experiencing the beautiful experience of Kite Flying. Although the younger people are more thrilled and enjoy Kite flying with more vigour and enthusiasm, the elder ones are not left behind. Some people uses loudspeakers and decks to exhibit their happiness. Really, its an experience worth to be lived.
Another wonderful thing that I forgot to tell is the happiness that you get when you catch hold of some other Kite. Even the size matters, one feels more happier if one catches a bigger Kite than the smaller one. Catching Kites has its own thrill especially when you are flying of your own. Catching hold of some other kite while you are managing of your own is a little difficult by a single individual but it is really great fun. But the one’s who do not know kite flying do not enjoy it and hence, find the day boring.
Last but not the least I feel that we are living our lives and age is also passing by what we can enjoy today, we cannot enjoy the same after a few years pass by. So, enjoy each and every moment of each festival and life with full vigour and enthusiasm.

Coming to 'The strategy of Kite flying', really it’s a great fun to fly a kite. Again if you know certain tricks to keep your kite afloat in the sky by cutting other kites as well brings more fun in itself. So, here is one of the trick named ‘Respect the flow of Wind’. There are two ways in which you can cut the thread of other kite, one by the way of pulling your thread fast so that your sharp thread strikes the thread of other kite so hard that it gets cut and the other one is to slowly push your kite in the sky by giving thread slowly and steadily so that it rises in the sky as well as cuts the thread of the other kite. Anyway, the strategy named ‘Respect the flow of the Wind’ tells us that not to go against the flow of the wind and always move your kite towards the flow of the wind after your kite comes together with another one. In colloquial terms, once you strike the thread of your kite with some one else in an attempt to bring the other one down, you have to move your kite towards the flow of the wind as fast as possible. Once the kite is moved towards the wind your thread will strike harder than your opponents and there are more chances for you to win than to lose. So follow the strategy to ‘Respect the flow of Wind’ to enjoy Kite flying.

ICICI Bank, HDFC Bank, Axis Bank, SBI Bank, PNB, CitiBank - How Safe these Banks are?

Safety of a bank depends upon Two key ratio’s :

Capital Adequacy Ratio

Non-Performing Assets Ratio

Also, to be feel more safe- Spread your Deposits.

Look at the banks' key ratios and parameters (such as net worth and profits). This will tell you about its financial health.
Capital Adequacy Ratio: Commercial banks need to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9 per cent. In simple terms this means that if the bank has given out Rs 100, it should have at least Rs 9 with it as capital.
Here's a brief snapshot of the CAR of some banks:

Private sector banks*	CAR (In per cent)
ICICI Bank	13.97
HDFC Bank	13.60
Axis Bank	13.73

Public sector banks*	CAR (In per cent)
State Bank of India (SBI)	13.53
Bank of India	13.01
Punjab National Bank	13.10

Foreign banks*	CAR (in per cent)
Citibank	12
Standard Chartered	10.59
HSBC	10.59

Non-performing Assets (NPA) Ratio: A non performing asset or a loan is when the interest and/or installment of principal on it has remained 'past due' or unpaid -- for more than 90 days. NPAs refer to the loans given by a bank that it classifies as doubtful. This means that the bank has low or no hopes of recovering money on these loans.
This gives a peek into how the bank uses its money for lending. Low NPAs mean that the bank has been prudent in giving out loans.

Private sector banks	Net NPA (In per cent)
ICICI Bank	1.55
HDFC Bank	0.47
Axis Bank	0.42

Public sector banks	Net NPA(In per cent)
State Bank of India (SBI)	1.78
Bank of India	0.52
Punjab National Bank	0.96

Foreign banks	Net NPA(in per cent)
Citibank	1.23
Standard Chartered	1.04
HSBC	0.58

Spread your deposits:
Deposits up to Rs 1 lakh are insured under the government's Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per this scheme, even if you keep multiple deposits (savings and fixed deposits) across branches of one bank, only a total of Rs 1 lakh is insured.
There is another good news. The government is in talks with the RBI to raise the ceiling on deposit insurance from the present Rs 1 lakh to Rs 2 lakh.

Thats the simple logic of keeping your investments and deposits safe.