Manthan 2017: Day 2: Guest Lecture 2: “How to analyse an investment idea- A true life example”- Mr.Ravi Sundaram, Senior Development Manager, iNautix Technoogies India Pvt Ltd.


Mr. Ravi S. started the discussion by quoting “Don’t invest for the sake of making money, but to gain an understanding of the market.” By taking the example of the pharmaceutical sector he is closely associated to, he explained concentrated vs. diversified portfolio. According to him, all guidelines need to be strictly followed while considering each of them.

He went on to explain the process related details while making investments. He mentioned that the duration depends on the nature of the investments. The holding period depends on the nature of stocks you are holding in the firm. Right issue needs to be carefully considered while going through with the decision. He further elaborated the investment decisions by citing an example of the life cycle of the drug which goes through various stages namely pre-clinical, clinical, NDA Review, Post marketing, launch, generic.

He went on to explain the road ahead for the pharmaceutical sector, through which he explained the important considerations like “Am I paying too much?.” Here, we mentioned that more than numbers, judgment and expertise matter while making investments.

While considering investments in a start-up, sustenance with consistency is a takeaway. He also explained few standpoints including government’s involvement in policy making. He said that the government looks at it holistically, not based on individual investor’s interest.

He also explained certain concerns while making investment decisions, few of which include life cycle phase wherein it possibly still be in early investment phase involving high R&D cost. Management’s strategy of in-organic growth, low tax%- take has its subsidiaries in countries where they book R&D expenses and outspoken management i.e. the number of media interactions include some of the other concerns. He ended the discussion by quoting wise quoting as an requisite to good investment decisions.

MANTHAN 2017: DAY 1: Inaugural Ceremony


The inauguration ceremony of Manthan 2017, the annual budget conclave of T. A. Pai Management Institute, Manipal was held today. The theme for this year’s event is “Evaluate Empower Exceed”. It started off with an insightful address to students by the Director-in-chief, Prof. Gururaj Kidiyoor and was followed by an informative speech by Prof. Madhu Veeraraghavan. He spoke about the TAPMI Finance Lab and the intent behind establishing it. It was started in the year 2013 and was established with a vision to position TAPMI as a leader in Banking and Finance education in the country. This goal is continuously pursued by training students in real time trading and investments in one of the finest finance labs in India today.

TAPMI has always strived hard to make its finance courses industry relevant and SMIC is one such course. Students today are neither interested in learning only theories, nor they want to limit themselves to writing papers and journals. They want real world experiences and this is explicitly the reason why SMIC was introduced as a course. SMIC is a course specially designed for students to train them in the art of investment. Students learn the fundamentals of trading and are provided real money for investing. This differentiates TAPMI from other colleges where trading happens only through simulations and lack real-time experience. With the vision to bridge the gap between theory and practice, SMIC provides hands-on experience to the students for growing and developing to become successful investors.

The ceremony was followed by the SMIC presentations. It was indeed an extremely proud day for TAPMI to celebrate and demonstrate excellence through the 11 teams who worked really hard for days and presented their portfolios before the industry experts.  The teams comprised of both PGDM and BKFS students. The students got an opportunity to act as real-world investors and present their investment ideas before industry experts. The judges reviewed each team’s work and provided suggestions after finding out weak areas in each plan. The feedback from the judges was a great value addition for the teams and helped them identify areas of improvement.

FINOMENAL 2016: DAY 2:”CAREERS IN FRM”-Mr. Lalit Taneja, Regional Director, Global Association of Risk Professionals


In an interactive session with students Mr. Lalit Taneja, Regional Director, Global Association of  Risk Professionals gave the students insights about the various career prospects in the field of Financial Risk Management. The session started off with him telling the students about the key forces driving the demand for risk managers. Before 2008 financial crisis market was driven by sales then post the crisis operations took over and presently the focus has completely shifted to regulation. This demand is the result of many historical drivers some of which are globalisation and integration of markets, increased product complexity, technological advances, regulations and market crisis. Sovereign risk, commodity market volatility, increased focus on organizational risk are some of the factors that have recently further accelerated the demand for risk managers.

He further stated why people are increasingly shifting to jobs in the field of FRM. Financial Risk Management assesses an individual’s ability to measure and manage risk in a real-world environment. What sets FRM apart is reliability, maintenance, validity, and acceptance. In the recent years, new trends have been constantly emerging in FRM. Due to current issues like cyber risk, liquidity risk, and regulatory stress, FRM has become a prerequisite for every organisation. GARP plays an active role in monitoring the work of certified FMR practitioners.

As the session approached its end, he concluded by stating some of the latest trends shaping the role of risk management which includes regulations, technology, advanced analytics and the emergence of newly arrived risks such as model risk, cyber security risk, and contagious risk. With these emerging trends, companies are gearing up to tackle these risks. Organisations are imparting risk education to their employees and are encouraging them to learn by providing benefits like exam preparation leaves, study groups in office and in-house course instructor.

FINOMENAL 2016: Day 2: “Solving NPA Crisis”-Mr.Tamal Bandyopadhyay, Adviser, Strategy at Bandhan Bank Ltd, & Consulting Editor, Mint

Mr Tamal Bandyopadhyay started the lecture by explaining how the noise over NPA has become louder after Raghuram Rajan initiated Asset Quality Review. In response to which the banks started to announce huge provisions to deal with NPAs which led to huge losses.

If the bad loans include restructured loans and written off loans along with NPA, the percentage will be much higher i.e., if it is 9% now it will increase to 20%. Most of the public sector banks have high NPA and they blame the environment and economic eco-system for their current condition. But, private banks which co-exist in the same ecosystem have low NPA between 1-2% except for ICICI which has 4%.Public sector banks are inefficient in relative to private sector banks because they are culturally different. The employee selection process is not transparent and the talent pool is poor. Public sector bankers have little incentive to remain honest as the pay is low. Hence the sector fails to attract better talent pool.

Talking about the impact of NPA on banks, Mr Bandyopadhyay said that it will affect the health and profitability of the banks. The deposit and loan growth have come down to the lowest because banks are scared to give loans, which adversely affects the investment.

Mr Bandyopadhyay said that this can be solved through privatisation of public banks by letting the government control banks through holding companies. This will take the banks out of government wage structure and investigation agencies. But this is a politically sensitive issue as it might lead to the violation of Bank Regulations Act of India. Recently, the government launched Indradhanush, brought down its stake to 52% and provided huge capitalization to public sector banks.

Mr Bandyopadhyay concluded by stating that the surgical strikes on banks might have led to the death of few banks but it is a necessity and the positive part is that we are no more in denial and are finally recognising the problem.dsc_0446-1

FINOMENAL 2016: DAY 1: “CCAR Stress Testing”-Bharat Gupta 2nd Vice President (Team Lead), Model Risk Management at Northern Trust Corporation


Mr. Bharat started interacting with the students by discussing the 2008 subprime crisis and how it affected the banking industry. He explained the entire phenomenon unfolded by taking examples of certain important banks involved. How the investors, banks, investment banks and the insurance companies in the US were involved in the crisis, which ultimately led to the collapse of the entire financial system.

Comprehensive Capital Analysis & Review (CCAR) is one such supervisory exercise that is being run by the Federal Reserve since 2010 after the sub-prime crisis as a stress test for American banks, in order to keep a check so that they maintain sufficient capital for liquidity. This was because the regulator felt that the banks had inadequate levels of capital planning and the estimation of Risk-Weighted Assets wasn’t proper. CCAR uses sophisticated financial models, which are linked to Macroeconomics to identify the losses that the loans of a bank can make and whether it has sufficient capital to take care of its liabilities in that situation. He also discussed the various banks in the US that have been a part of this CCAR exercise and how the system is becoming less risky because of it. He further explained, how models like the Pre-Provisioning Net Revenue (PPNR) are built by banks using macroeconomics in order to maintain capital under the CCAR regulation.
In the end, he spoke about the various opportunities that the area of CCAR holds for the students of management in the industry.



Finomenal 2016, the third edition by the Finance forum of T. A. Pai Management Institute hosted its inaugural ceremony on the 15th of October. The theme for this year is – Risks. Reforms. Regulations.

Anurag Krishna, the MOC for the event welcomed the guest which was followed by the invocation vandana to invoke blessings of the almighty. Prof Animesh Bahadur, Dean- Administration, welcomed the students and the guests sitting in the panel leading the guests to initiate the lamp lighting ceremony. He addressed the students and informed them about how the faculty and Bloomberg labs are making finance a sought subject of specialization.

Mr. Harsha Upadhyaya, Chief Investment Officer of Equity and Fund Manager at Kotak Mahindra Asset Management Company Limited graced the occasion as the Chief Guest. He introduced the topic by saying “Risks cannot be defined completely and that is what makes regulations difficult.” He explained that everything around is constantly evolving and changing and so are risks. One has to take adequate measures to protect oneself from all risks. With globalization, the risk is no more bounded by geographical boundaries. According to him, mutual funds in India have to follow regulations in the USA due to linkages in this era of globalization.

Mr. J. K. Vishwanath, Chief Credit Officer – Development Credit Bank Limited, was the keynote speaker at the event. In his opinion “tone at the top determines where one stands for in the organization.” This is important because it determines how the organization will run. He advised the students that one should learn from rules and exceptions. This is the only way to deal with risk while keeping up with reforms and regulations.

Mr. Joel Pannikot, Head of Asia-Pacific Strategy (Education), Bloomberg was also present at the inaugural ceremony. He foresees “returning of humanity to humans.” According to him, technology is growing so rapidly due to the need to reduce risks and errors. He feels that artificial intelligence will govern most future decision-making processes and we will be doing work that require the “human touch.”

The opening ceremony came to an end with Prof Madhuveer Raghavan, Area Chair – Finance thanking the guests for imparting valuable knowledge to the students. He encouraged the students to make the next two days eventful. With this, Finomenal 2016 started off in full swing, promising two very intellectually stimulating days.

FINOMENAL 2016: Day 1: “Disruptions in the Financial Services Industry”-Mr.Gajendra Kothari, Managing Director & CEO at Etica Wealth Management Private Limited


Mr. Gajendra Kothari started off by quoting technology is the heart of our business. It has changed the way we experience things.

Taking the discussion forward, he said we are increasing moving towards sharing economy. We are spending on infrastructure and branding activities like never before. He mentioned that the beauty of technology is that there are problems as well as solutions. All form part of an ecosystem. He provided the example of whatsapp moment to illustrate the same.

He further mentioned about JAM Trinity-Jan-Dhan, Aadhar, Mobile connectivity. According to him, technology has eliminated leakage of funds to middlemen, transacting directly from government to end-users i.e. the poor. In other words, we consume what we disseminate.

He provided several other examples like IMTF (Instant Transfer of Money), Digilocker, Square Credit Card Reader, smartphones with integrated Aadhar, Now deposit checks on the go! (mobile app) etc. that have made our lives better by the click of a button. He also mentioned about UPI to make and request transactions and ecommerce sites, which have revolutionized, the consumer shopping experience. According to him, the technology moment would be when we enjoy paperless, signatureless and branchless economy.

He went to suggest the industries undergoing disruption in the financial sector include banking, insurance, asset management, wealth management and investment banking. Moving ahead, he highlighted the future trends comprising the rise of sharing economy, wearable technology, contactless payments, mass rollout and driverless cars.

However, he emphasized that there are certain challenges facing the technological growth including data confidentiality, faster replacements, robust infrastructure in terms of network and connectivity and standard conflicts.

He concluded the discussion by suggesting the students to constantly be up the curve with specialised courses like risk management, cyber security etc. He also stated in conclusion that regulators, not technology are causing disruption.