Raja hardik nribm

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Macro Economy Of France PRESENTED BY: 107140592003 GUNJAN OJHA 107140592044 KAJAL ODEDARA 107140592032 HEMANGI RATHOD 107140592052 REENU NADAR 107140592050 NEHALI THAKKAR 107140592059 JINAL SHAH

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Transcript of Raja hardik nribm

Page 1: Raja hardik nribm

Macro Economy Of FrancePRESENTED BY:

107140592003 GUNJAN OJHA107140592044 KAJAL ODEDARA107140592032 HEMANGI RATHOD107140592052 REENU NADAR107140592050 NEHALI THAKKAR107140592059 JINAL SHAH

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Economy of French Republic

France is in the midst of transition from a well to-do modern economy .

The government has partially or fully privatized many large companies,

banks, and insurers, and has ceded stakes in such leading firms as Air

France, France Telecom, Renault, and Thales.

It maintains a strong presence in some sectors, particularly power, public

transport, and defense industries.

France is the most visited country in the world and maintains the third

largest income in the world from tourism With at least 75 million foreign

tourists per year.

France has weathered the global economic crisis better than most other

big European Union economies.

Economy Of France

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France's real GDP contracted 2.5% in 2009.

It recovered somewhat in 2010, while the unemployment rate

increased from 7.4% in 2008 to 9.5% in 2010.

The government budget deficit rose sharply from 3.4% of GDP

in 2008 to 6.9% of GDP in 2010, while France's public debt

rose from 68% of GDP to 82% over the same period.

Paris is terminating stimulus measures, eliminating tax

credits, and freezing most government spending to bring the

budget deficit under the 3% euro-zone ceiling by 2013.

Study of GDP Growth Of France

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There is a minimum employment wage in France that is regulated

by the French Government.

These minimum wages are called ― SalarieMinimum de

Croissance (or SMIC for short), and are set at around 8.86 Euros

per hour of labor.

Moreover the wages are paid at least once every 30 days, mostly

at the end of each month, and payment is made through either

check or deposit into the employee‘s bank account.

In Comparison to INDIA, France has a better way of calculating the

wages to be given to the employees with respect to their work.

Opportunities in France

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European union

The crises was preceded by long period of rapid credit growth ,low-risk

premiums,

The ongoing recession is thus likely to leave deep and long-lasting

traces on economic performance

The financial crisis has had a pervasive impact on there al economy of

the EU.

Slow down is widely perceived to require an adjustment of fiscal

positions towards close to balance the economy .

The unemployment rate is forecast to increase to close to 11% in the

EU by 2010.

Financial crises

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The emerging economies in Asia–in particular China–and oil

exporters are disposed to assume their role as US creditor owing

to their large national saving surpluses.

The French have been experiencing difficulties in paying for their

loans and debts.

The financial crisis offers no job opportunities for them

They are now getting into too many debts because they cannot

find money to pay these transactions because of this crisis

Moreover, financial institutions are also closing down.

Effect of Global Crises on France

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Creating two state agencies that will provide funds to sectors

where they are needed-

One entity has issued up to $480 billion in guarantees on inter-

bank lending issued before December 31, 2009, and was valid for

five years.

Other entity will use a $60 billion fund to recapitalize struggling

companies by allowing the government to buy stakes in the firms.

President Sarkozy announced that the French government would

take a tougher stance toward French banks that seek state aid. Up

to that point, France had injected $15 billion in the French banking

system

France Efforts in reducing crises

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The Indian banking system has had no direct exposure to the sub-

prime mortgage assets or to the failed institutions. In fact, our

banks continue to remain safe and healthy.

External demand, as measured by merchandize exports, accounts

for less than 15 per cent of our GDP.

The Indian corporate sector's access to external funding has

markedly increased in the last five years. In the five-year period

2003-08, the share of investment in India's GDP rose by 11

percentage points.

Economic crises faced by India

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The big risk is a possible repeat of what happened in 1996:

Projects that are halfway to completion, or companies that are

stuck with cash flow issues on businesses that are yet to reach

break-even, will run out of cash.

One danger meanwhile is of a dip in the employment market.

There is already anecdotal evidence of this in the IT and financial

sectors, and reports of quiet downsizing in many other fields as

companies cut costs.

Significant drop in new hiring --and that will change the

complexion of the job market.

Cont…..

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India has taken an array of monetary and fiscal measures, in quick

succession, to contain inflationary pressures.

The Reserve Bank had, within four weeks in October, lowered

reservations and reduced a key interest rate to provide some 250,000

crores of liquidity for banks to finance businesses and consumers

The confidence and strength to the Indian economy is its sound

financial sector with its well-regulated and well-capitalized banking

system.

RBI projects that the annual rate of inflation would be down to 7

percent by March 2009.

Even at 7.5 percent, India will remain these fastest growing economy

The Prime-Minister has set-up a high powered group chaired by him to

closely monitor the evolving macro-economic

Measure to control the economic crises in India

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If we see in this manner a lot of decisions which are taken up by

the French government are ought to be learned and applied in

India

The political relations positively are used by French government

for the progress and growth of the economy

The French economy is well managed and some positive and right

decisions has took it to the greater heights and apart from

developed country

India’s success is also remarkable being a fastest growing

developing country but need to adopt some more good policies

from French economy.

Conclusion

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SEM --IV

Banking Industry Of France

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French banking industry is constantly opening its business world wide.

Payments via debit card can be made in one payment at the end of

each month rather than immediately.

Pin-code needs to be used with each over-the-counter card transaction.

These measures successfully cut down on credit card debt and fraud

problems in France & other countries also.

French mortgage is a very attractive option to many investors,

normally offer 100% mortgage finance to foreigners, with interest

rates capped at 4%.

Fixed rate mortgages are available for long terms only of between

10 and 20 years maximum term for a French mortgage is 20 years

or up to the age of 70 ,which ever is sooner.

Introduction

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Online banking is a highly popular option and it is widely used,

however quality can vary greatly and most banks make a monthly

charge for the use of online services

BNP Paribas is one of the main banks of Europe and France, the

product of the merger between Banqu National de Paris and

Paribas

BNP Paribas is divided into three individual business units

Retail banking,

Corporate and investment banking

Investment solutions,

Which is where you will find real estate services

Cont….

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1. Money markets history The French Fungible Treasury bond rates trend is positive. After a downfall of 2.50% in summer2010, it then sky rocketed

between late 2010 and early 2011, reaching 3.80% for instance in mid-April 2011.

2.)Short-term rates (for variable and capped rates) Short term Interest rates in money markets reflect the price at

which banks lend money to one another over short periods. These rates serve as the reference for variable rate loans. Banks

add a margin of between 0, 60% and 1,50%, to the short rate term.

3.)Long-term rates(for fixed rates) Thisrateisthereferenceusedbybankstosettheinterestrateappliedfo

r15yearsfixedratemortgages. Ratesappliedfortheotherloantermsarecalculatedbyaddingorsubtr

actingapproximately0.15%forevery5yearphaseaboveorbelowa15yearsterm.

French Money Market

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Subsidiary-BNP Paribas IndiaSolutionsPrivateLtd. Subsidiary-BNP Paribas Mutual Fund Subsidiary-BNP Paribas Investment Services Private Ltd. Subsidiary- Arval India Private Limited Subsidiary- Segece India Pvt. Ltd Joint venture –SBI Life Insurance Co. Ltd Joint venture –Geojit BNP Paribas Financial Services Ltd Joint venture-BNP Paribas Real Estate & Infrastructure Advisory

Services Private Limited Joint venture- Sundaram BNP Paribas Home Finance Ltd Joint venture - SREI Equipment Finance Pvt. Ltd Joint Venture – BNP Paribas Securities India Joint Venture-BNP Paribas Sundaram Global Securities Operations

Pvt. Ltd

BNP –PARIBAS investment in India

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BNP Paribas India Solutions Private Limited (BNPPISPL),

incorporated in 2005, is a subsidiary of BNP Paribas S.A.

BNP PISPL aims to provide info-centre, data- warehousing, IT and

back-office processing services, with major focus on capital

markets information technologies as well as regional –

organization -and- methods.

1)Jointventure-SBILifeInsuranceCoLtd

BNP PISPL provides the bank's business lines and functions a

competitive and efficient platform to cope with the ever growing

operational and informal on technology requirements.

-SBI owns 74% of the total capital and BNPParibas Cardiff there

maintaing 26%.

BNP PAIBAS as India Solutions ltd.

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Sundaram BNP Paribas Mutual Fund has been set up as a Trust

under the Indian Trust Act, 1882.

It has over 7000 crores (USD1.55billion) as Assets under

Management (AUM) as on November 13, 2006.

It has eleven equity, thirteen debt and one-hybrid products

catering to various categories of investors.

It has been allotted CPR1 ranking by CRISIL for three consecutive

quarter sending December 2005, March 2006 – and –June - 2006.

SUNDARAM BNP PARIBAS ASSET MANAGEMENT

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Geojit BNP Paribas Financial Services is one of the leading retail

stock brokers in India, with a strong presence in the Gulf

countries. Listed on the National Stock Exchange (NSE)and on the

Bombay Stock Exchange (BSE)

BNP Paribas Securities India Private Limited is the company's joint-

venture with BNP Paribas for institutional brokerage.

Sundaram Home Finance Limited was incorporated on July2, 1999,

under the Companies Act 1956 and Union de Credit pourle

Batiment (UCB) a wholly-owned subsidiary of BNP Paribas, France

Geojit BNP-Paribas

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It had entered into an agreement on 9th May 2007, regarding a

strategic partnership in housing finance in India whereby UCB will

acquire a 49.9% stake in Sundaram Home Finance Limited, a

subsidiary of Sundaram Finance Limited.

Consequent to the completion of the regulatory approvals, the

name of the Company has been changed to Sundaram BNP

Paribas Home Finance Limited effective 28th November 2007.

Cont…

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State Bank of India Paris which is in France offers the full range of

International Banking products and services.

They are capable of handling customer„s international

transactions with speed, efficiency and a professional touch.

Following is an indicative list of products and services offered in

the International Banking area.

1) PRODUCTS OFFERED (DOMESTIC/CROSS BORDER)

2) SERVICES OFFERED

a) Collection of Bills

b) Advising

c)Confirmation of L/Cs

d) Negotiation/Reimbursement/Discounting of Bills drawn under

L/Cs

SBI’S presence in France

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Credits and Loans

Credits and Loan State Bank of India, Paris offers both fund-based

and non fund based facilities to business and industry to take care

of their long term and short term requirements.

A)Product

Buyer’s Credit/Supplier’s Credit

Bank Guarantees

B)Direct lending

Revolving Loans/Lines of Credit

Overdrafts/Loans against cash collaterals

Financing of International Trade

Cont….

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SBI, Paris offers both fund – based and non fund based facilities to

business and industry to take care of their long term and short term

requirements.

The branch caters to the business interest of French exporters and our

charges are very competitive for India -related-business.

Products offered

Letter of Credits/Stand by Letter of Credit

Services-offered

1.Speedy collection of Export Proceed

2.Free assistance in compilation of Documents

3.Supplier’s Credit / Buyer’s Credit

Deposits:They accept Fixed Deposits for a minimum amount of EUR 3.0

and for USD and Pounds 5.0. The minimum period is 3months.

Trade Finance

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State Bank of India Paris is a member of Deposit Insurance

Corporation.

Saving Bank and Term Deposits are eligible for deposit insurance

from the Deposit Insurance Corporation, subjected ways to

maximum coverage limitations as out lined in their brochure

"Protecting Your Deposits” and provided they are in Euro, are

payable in France

Insurance

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Type of Deposit: Term Deposit, Callable at the discretion of the Bank

Currency of Deposit : Euro as well as US Dollar

Deposit Amount : The minimum amount of Deposits hall be

USD/Euro 10,000.00

Period of Deposit :One year but callable at par at the discretion of

the Bank on each interest reset payment date, which is three

months.

Issue Price: 100%

Maturity Payment : 100% with interest.

Rate of Interest : 3 months LIBOR plus 10BP .(For Amounts higher

than USD/Euro 100,000.00 a further plus rate is available).

Premature payment: Not allowed, however, Dem and Loan upto 75%

of the principal amount can be given to the account holder.

SBI special deposit plus scheme

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SBI is the largest commercial bank in the country and has reach all

over India.

It contributes highest economy development of the company through

various capital market instruments.

BNP Paribas having existence in 80 countries is one of the most

widespread banking network.

As India is a developing nation French banks are eager to enter

Indian market for the business purposes.

The various joint ventures and business in one other country gives a

global platform for our nation’s banking industry.

France , which has been leading efforts to curb financial crisis, has

proposed a package of measures estimated to cost over $500 billion.

Conclusion