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The collaboration suite of cyber criminals Just 660 days! Target over-ambitious... Banking overhauling or reorganisation? Indian customers are tech savvy Governance in Reverse Gear? Ferrying digital banking to Lakshadweep Payment banks have arrived Rationalised New bank licences, at last... Merger mania haunts banks Needed a Banking Atlas Reaching out: is it slowing down? Lacklustre credit expansion Thirty more cities seek to become SMART Well-lived... LVB- A supermarket of financial services Big bank merger, bigger expectations Reaching the Unreached… It’s a war on black money, support it. How ‘secure’ are the secured loans? Ernakulam excels... The paradox: clamour for the Goliath and David Small finance banks offer high interest rates Fund healthcare clinics in villages... Hesitancy in announcing year-end results How okay are new banks? Two banks: their jubilees and performances New capitals of Migrant banks Smart banking in smart cities Cautious and considerate United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Nothing much can happen…. Why any time money? Banking on Risk Grows Bigger Managing NPAs... Growing volume of stressed assets… All that glitters is not gold... Small finance payment banks... One down in private sector Bank deposits account for 46.3 per cent of household savings Perhaps small is more beautiful than big! Anytime banking to anywhere banking Too big to fail and too small to sail Drop in SLR- sparing lendable resources Stage set for Indian ‘avatar’ of foreign banks Growing gainfully Capital base of regional rural banks raised Targets continue to be ad hoc Good, bad and ugly Why priority status? Another route for achieving financial inclusion Emerging crisis Who is the real beneficiary? Insatiable appetite for credit Drastic decline in asset quality A bank for women, by women Aadhaar, niraadhaar and banking Banking in Telangana What is the priority – mergers or NPA reduction? Monetary policy continues to adopt dis-inflationary path Cradle of banks to a smart city... Holy or unholy? Cut in repo rate – lower than expected From lazy banking to easy banking Greet Lakshmi the banking robot A development bank for BRICS Mega merger is on Small is ‘more’ beautiful Financial inclusion vs unclaimed deposits Bottomlines shrink, bad loans rise... A new development bank rising in the east…
 
A new development bank rising in the east…
After the formation of BRICS Bank with its headquarters in Shanghai, another bank sponsored by a group of 21 countries in the East, is coming up in Beijing. It will be called the Asian Infrastructure Investment Bank.

India is one of the prominent members of the founders’ group. Japan, South Korea and Indonesia are yet to join in. The West is understandably upset as the World Bank and the financial institutions in Europe may lose their importance. The Asian Development Bank (ADB), on the other hand, concedes the need for a bank like this to meet the growing demand for investments in infrastructure in this region.

Investments in infrastructure are of strategic importance for economic development. Many of the countries among the 21 signatories, including India, need huge investments to expand their infrastructure facilities.

The main objective of the new bank is to channelise the investments into infrastructure development, adopting multi-country investment projects through collaboration, wherever necessary. Investments required are very huge. According to an estimate by the Asian Development Bank, the developing countries in the Asian region require an investment of 8 trillion dollars during the decade 2010-20, for meeting the requirements of the present infrastructure facilities.

Indian economy’s investment requirements are massive. National highways need special attention in investment. “If you want to become rich, invest on roads,” says a Chinese proverb. Good roads contribute silently to the welfare of various sections of the society in addition to contributing to the economic development.

Indian Railways is in dire need of investments for expansion and for improving its operational efficiency. Power sector continues to be a bottleneck, hindering growth of the economy.

Indian infrastructure companies should take up development projects funded by the bank in different countries. Perhaps, they can take advantage of the absence of Japan and South Korea in the Bank’s group, seeking preferential treatment from the member countries in offering projects for execution in their countries.

 

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