Rohit Narnoli - Man of his Own Image!

This is my second article on PNB fraud where I am trying to explain why we cannot do much about Mallyas, Modis and so on. And why, a commoner is forced to be a Lannister (who pays their debt :P) while rich can easily do away with it. For that, it is very important to understand the difference between the two. A home-loan is taken by an "individual” and it becomes his asset when the loan is paid off. That individual is solely responsible for the repayment of that loan and owns all the gains (or the losses). He has full liability of the loan. On the other hand, corporate loan is issued to a "company" and the assets belong to the firm and its shareholders instead of one individual. In most of the cases, ownership of the proprietor is 51% or less. Point to be noted here is that, the owner and the company are two different entities and there is something called limited liability clause that comes into the picture. In the case of corporate loans, many factors such as Gut...

The following stories are glimpses from the lighter moments that I encountered while interviewing MBA aspirants. (* This post might get updated* ) PI Stories #1 Q - What is your strength? Candidate - I am deterministic. Me (in my mind)- * Word-meaning nahi pata to kyu show-off kar raha * PI Stories #2 Q - What are your strengths? Candidate - I am Diploma-tic. Q - Why do you think being Diplomatic could be a strength? Candidate - Because IIMs offer a 'Diploma'. Me (slow claps)- * you are the next Bill Gates, my Buoy! * PI Stories #3 Q - Tell me any one female chief minister from any state of India. Candidate - 'Mayawati' Me- * She is a prominent figure indeed * PI Stories #4 Q - Why do you want to do an MBA? Candidate - I want to start my own B-School. Me - * I see !* PI Stories #5 Q- Why do you want to do an MBA? Candidate - I want to be successful! Q- What is your definition of success? Candidate - Something that gives me happiness! Q...

On 14 th of February, the Punjab National Bank, India's second-largest state-run lender, said it had detected "some fraudulent and unauthorized" transactions amounting to around Rs 11,360 crore at a branch in Mumbai. The fraud involved unsecured loans that were given to Nirav Modi, a diamond and jewellery merchant, and his associates. This piece is an attempt to explain the issue in the simplest possible way and is my personal interpretation. What is a bank :   A bank as ‘a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets’ ( Wikipedia, sic ). Hence, in a banking system a group or network of institutions provides financial services to people. These institutions by managing deposits, operating payment systems, and providing loans, enables trade and money management. It is evident from the fact that all the major financial centers in world (lik...