Anand Kalyanaraman

Staff Writer • India Edition

A certified Chartered Accountant, Anand chose to pack the power of numbers with words when he left a career of seven years in accounting, putting together MIS reports, and investment research to enter journalism. Before joining The Ken, Anand was Deputy Editor at The Hindu BusinessLine, a newspaper he worked at for 11 years.

33 Articles published

Top Comments by Anand Kalyanaraman

Small savings schemes—the market-linkage farce will come to bite investors

Thanks Rajesh. I think the story mentions the fact of lag in SSS interest rates in different contexts or to buttress points with examples. On the Modern Monetary Theory (MMT), many experts think that it is not suitable for India given that we do not meet the pre-conditions of the theory - for instance, India's borrowings are not entirely done in its own currency. Also, critics point to the risk of high inflation with MMT. Even in Japan which prints and largely borrows in its own fiat currency, MMT carries risks and may not work, say critics. Below are some interesting reads. https://theprint.in/economy/why-emerging-markets-like-india-are-wary-of-using-modern-monetary-theory-to-fix-the-economy/532893/ https://www.livemint.com/opinion/columns/modern-monetary-theory-let-s-look-at-it-from-india-s-perspective-11612886536139.html https://www.business-standard.com/article/opinion/does-japan-vindicate-modern-monetary-theory-121123101371_1.html

Anand Kalyanaraman

Small savings schemes—the market-linkage farce will come to bite investors

Hi Pradheep, agent commissions do increase the cost of small savings schemes including recurring deposits for the National Small Savings Fund (NSSF). The Shyamala Gopinath Committee in 2011 had recommended changes, some of which were implemented. The report below also talks about this matter. https://fincomindia.nic.in/writereaddata/html_en_files/oldcommission_html/fincom14/others/30.pdf The story mentions the big accumulated deficit of NSSF over the years. Part of this was due to management cost of the small savings schemes which includes agent commissions.

Anand Kalyanaraman

India’s rising buyback tide doesn’t raise all boats equally

Hi Rajeev, we are not arguing against the promoter taking its pound of flesh. Most promoters do that. Tata Sons does it in the case of TCS and the government does it in the case of ONGC. The argument is about taking so much it cuts close to the bone and that the company, ONGC in this case, is left financially weakened. The government in the past few years forced ONGC to acquire government stakes in HPCL and GSPC, and also got high dividends from ONGC, besides the buyback proceeds. Cash-rich and debt-free earlier, ONGC had to resort to borrowings. This would have affected market sentiment. The article below has some numbers. https://www.moneycontrol.com/news/business/ongc-first-gets-forced-to-buy-hpcl-and-now-buy-its-own-shares-back-3357841.html True, crude oil is fickle and the commodity business has sharp ups and downs. But a not-so-healthy balance-sheet likely holds back ONGC from capitalising on attractive asset buying opportunities in the global market. Also, even when oil prices rise, the market may not be assigning ONGC the value it deserves due to past and ongoing experience of government interference in PSU oil companies' operations and capital allocation decisions. Agree, it'll be great to track the trajectory of these very different but key companies. :) Yes, it's a new age of energy and security as the latest Economist cover says. India and its national oil companies must be financially ready for this.

Anand Kalyanaraman

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