Month: February 2014

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Musings

Vadodara & Modi

I did my schooling from Vadodara and I must say that the importance of Baroda/Vadodara has only diminished over the time. 15 years ago Vadodara was a much better city than even Bangalore. It has quality Infrastructure and was a hub of industries. Amul (Anand Milk Udyug Limited) was only a few miles away, ONGC & petrochemical industries had huge presence, L&T factory were some of the common household brands. Narmada dam & powerplants around ensured that there was uninterrupted power & water supply throughout the city. Army had a huge presence (EME) which improved the purchasing power and created a demand for quality education, luxury items & good infrastructure. The road infrastructure was top notch, basically it had all the ingredients needed to unleash an industrial revolution.
In comparison Bangalore was a similar sized city and was comparable in every respect. But 15 years later Vadodara is still is a promising industrial town (not city) and Bangalore is the next metro. Why?
Vadodara and Gujarat had uninterrupted rule of BJP while Bangalore although BJP dominated changed its political allegiance more frequently. Politicians like diapers are good when new, but stink when not changed often enough.

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Musings

Floating interest rate

My bank increased my interest rate by 25 basis points (0.25%) should I be concerned?
Like the case of my friend (screenshot below), the banks have a tendency to increase the interest rate and often without any warning or prior communication.
Does 0.25% matter?
Well I ran a small calculation using an EMI calculator:
If I borrow 25L for 20 years today at 10.25%, I am expected to shell out Rs 24,541/- every month.
However, if the bank increases the interest rate by 25 basis points and I continue to pay the same interest rate, then I need to pay an additional 15 EMI to repay the loan. (no wonder the banks offer to extend your loan duration). Check for yourself in excel =PMT(10.25%/12,12*20 years, 25Lakhs)
15 EMI means 15months of additional debt, and Rs. 3.63L additional as EMI/interest on a Rs 25L loan. That is a whopping 14.52% extra burden!!!!!
What is even worse, fixed interest rate is not fixed, bank will change it to floating after 3 years.  Also they can say that your risk profile has changed (very common with students) and change the interest rate. Everybody knows what floating means, but I am yet to meet someone whose interest rate went down.
 
Repost from my original article at Samuhik

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Musings

Leader vs. Manager

I was reading this hilarious article saying that it will take 10 Rahul Gandhi to change a light bulb. The irony is that he is one of the prime contenders of the post of Prime-Minister of India and I am yet to meet a single individual who believes Rahul is a leader they would like to follow (yet he might get elected). Almost all management schools call their students as leaders even though all they teach is management. Are the 2 same?
Almost managers I have met have basically a dashboard through which he could count & monitor. They are well entrenched in the status quo and work best in repetitive chores (where the same set of input, process leads to the same & measurable results). Leader on the other hand are visionaries who have a more long term horizon and is more interested in creating value rather than just counting it. A leader has a circle of influence (rather than power) and people follow because they want to and not because they have been asked to.
Honestly both leaders and managers have their own unique and different position in the organization and a man wearing both hats is nothing but a joker. A manager is valued for his ability to execute & co-ordinate (break down a complex vision into a set of simple tasks and making sure they are completed). They are valued for their ability to direct, plan and anticipate. They create processes, rules and operating procedure to ensure repeatability of the results rather than constantly challenging nature of the leader.
Just because you manage an account and have 10 people reporting to you, you become a leader? Do you actually need to be a manager to be a leader? In today’s company every second person seems to be calling them a leader, but what are they leading?
– The manager administers; the leader innovates and creates new ways.
– The manager focuses on systems and structure; the leader focuses on people.
– The manager relies on control; the leader inspires trust.
– The manager has a short-range view; the leader has a long-range perspective.
– The manager asks how and when; the leader asks what and why.
– The manager has his or her eye always on the bottom line; the leader’s eye is on the horizon.
– The manager imitates; the leader originates.
– The manager accepts the status quo; the leader challenges it.
– The manager is the classic good soldier; the leader is his or her own person.
– The manager does things right; the leader does the right thing.

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Musings

prank sms

Here is a collection of really mean but hilarious real life text message harassment done. Unfortunately i am yet to find a good Indian example, also I am bored with the monotonous bakra episodes and live prank calls made by indian RJ