I want to sell SBI @ Rs.10000 per share - Not kidding

Hi amit
your statement provoked me into saying something.
Your focus is right-Rural India. But the point is wrong.

First of all Being rural and poor doesn't mean being dishonest.
Taking shelter in a dharamshala is not all that bad. It used to be part of our culture, dharamshalas and sarais meant for travelers.Many foreign travelers have passed through them and written about their contemporary(I mean ancient and middle period) social life in India. They have lost their importance because we have lost /forgot our moorings.

That besides, read the woes of shareholders, traders investors who get cheated by brokers. Industrialists who just digest huge loan without so much as giving a burp. Think of dishonest politicians,govt servants, police, taxpayers or companies not giving due importance to customers, cheating them.

Its not that all of them are like this. But then same is true of rural India. Do you know how much is really going for development of Rural India from our plan/budget allocation. How many companies have courage to set up shops/sheds in rural india without any tax incentives. How many of our doctors ,teachers ,advocates or man from other profession are willing to go to rural india and give their best. By pull factor Urban India does enjoy most of these benefits without asking for it. And Rural India gets deprived of this by push factor.

only in last few years people/corporates have started to realise the true potential of Rural India where 70% of their potential market lies. initiatives from HLL ,ITC , Reliance and many such companies to make inroads to rural india is driven by this realisation. Motive is pure business but it will bring benefits as well to rural folk.

Concept of micro credit has taken hold only after Md Yunus of Bangladesh was given Nobel Prize. Till that time Banks were unwilling to lend a helping hand to rural folk despite policy nudge from Govt. The actual default rate for them and total NPA from rural sector is far lower than what is in Corporate sector. If you go through RBI and IBA data you will be surprised, how popular cliche run contrary to reality.

We talk about WTO and free trade among countries. Do we know how much of barriers we have eracted fro interstate goods movement. You can not take rice/paddy or agricultural good from out of state or may be District. Farmers can not sell their produce in a manner that reflects their freedom of choice. Market economy doesn't operate for them. If you really doubt this try taking few gunny full of Rice or paddy or wheat out of your state. No permit then Pay bribe.

Thanks to Dr. Kurien , who revolutionized Milk economy( major part of rural India) and brought white revolution in the countries.There are other examples as well. Likewise , if people realise the true potential of Rural India , then only they will realise the true worth of our economy.

I am deliberately not giving any figures here as it is more in the nature of perception and conception. And how do we go about it, implementing programmes which benefit 70% of the population on a long term basis and also addresses their immediate and intermediate requirements and needs.

(for figures on can easily refer to various Govt publications, Such as Economic Survey, RBI report, IBA reports, Planning Commissions documents and various sample surveyes by NSSSO.)

Pankaj

pankaj i appriciate your views
trying to find clapping siley..not available here...
and dear parv.. abuut the hospitalty and aviation sector...i clearly mentioned"my views"
and we will talk about it atleat after three years///my views are intact...
and pankaj...one day when our rural india will start making a move...elive me all word will see with a fingure in thir mouth..and the day it will happen...jus think about our growth....
love u all
darlingboy

lol
pankaj

Dear pankaj sir, for an overall picture of how well the country is progressing and if indeed we are growing as a nation opposed to the rich getting richer while the poor are stagnating would it not be more viable to check the per capita income, wouldn't this be the best way to quantify the country's overall prosperity instead of GDP or some other value?

Amitt may have a valid point, I don't think he means to demean the lower classes in our country (me included), I think he's simply saying economic prosperity has been confined to certain sections of our society. After all this was one of the primary reasons the BJP lost the last general elections.

Marcus completely in agreement with you.

My dissension was taken in a wrong way.Equating India's growth story with flying and five star hotels and bull market in stocks is no fair comparison.IT and Auto which were a darling only 1 year back and when major market moves were defined by IT and Auto,look where they are now.Market moves on expectations nullifying reality.

By real growth i want to see and i mean electricity and water supply in whole of India,more cold storages,more motorable roads by defacto i mean more infrastructure related works.We still have a trade deficit as opposed to China which has trade surplus.The growth pangs will be there.

PKjha rightly pointed out Milk co-operative story,but look where Mr.Kurien ended up.

I will be the 1st one to eat my words,mark it.

I find there is no difference of opinion between Pkjha & Amit.
Pkjha is very right in directing us towards the Huge potentiality ,yet unknown if when rightly channelised what an explosion it can be.Whereas Amit is harping on the 'Glossy Feel Good Factor' hyped by Media rather than actual Water Management/Rural Electrification/Education/Basic Health amenities.
Both of them are aware of the Sleeping Gaint's Potential versus Actual.
Gone are those days when Our unfed mass had to be fed by "PL480 Accord" with US,when the excess Agricultural produce of US was being shipped to India in sixties,to check the mis-match between Demand / Supply of US but not to feed a poverty driven State on humanatarian ground as was projected then in world media by US.
Mrs Gandhi implimented through Central Govt Acts & Bills
'Green Revolution' (Punjab followed it Ditto) / Revolutionary Land Reform Bills (Sly comrades of Bengal & Kerala followed it ditto & falsely popularized it to be their brain wave ) / Abolished 'Privey Purse' / Abolished Pvt Banks to Setup PSU Banks / Had won Wars (went upto hand shaking distance to Lahore,paralyzed the Pak Ports with Naval war ships & all this done within 72 Hrs of after our troops crossing Indian borders ,surrender of East-Pakistan Gen Niyazi to our GOC Eastern command Arora,and when US 7th Fleet was rushed to bail out Pakistan; armed with Nuclear War Heads,i am not a midnight's child as per Rushidie but in '70s was in my late Teens then & still feel proud to remember the Statement Mrs Gandhi made to foreign Media ,on those anxious moments when i being 1 amongst the Billion extremely worried about the odds against nuclear weapons of US ; She made this statement "Indian Pride is no Less than American Might" ,though now i feel in this age that was emotional but i still feel proud to remember when Pakistan Fighters where on Indian Skies ,bombing near Agra,She was at Kolkata Bigade Parade Maidan adressing a Huge Rally,i have seen her to be Rushed to the under ground Bunkers of Raj-Bhavan but the indomitable Spirit Refused those cover She rushed to Airport ,Kolkata skies was cordoned by Indian Fighters,Pak Airforce was at that moment still on Indian Skies,She made a Radio Statement moments after being Air bourne from Dum Dum it was for our Jawans "Hit them where it Bleeds" ,becoming emotional & drifting from the main point)
Gone are those days now We are a Force to be Reckoned by all countries for their own compulsion.
Rajiv Gandhi addressed a Full House US congress still a History to be repeated by any other Foreign Diplomat,they wanted to Strip Him Openly & breaking Protocol He was Grilled by Questions by Senators.They misjudged the baby faced 'Baccha'.Rajiv entrusted Sam Pitrodia & the out come can be seen now.Mr Vajpayee even after demonstrating World our Nuclear capabilities ,in the last War ,Demonstrated a Mature Calm Restraint ,befitting an Adult State's Status.
Gone are those Days when Mr Chandrashekhar PAWNED our State GOLDS in
'Berkley Bank' to Pay Foreign Debts & avoid BOP crisis.
We have grown up but now we have to Focus on Core development,to sustain & secure our Future.

Hi Amit

Your opinion is so valuable to us that it motivated us in writing. It is respected a lot in this forum.

What I could not understand why ticket-less travel(an euphemism for dishonesty) is equated with rural India. It does happen at all strata of society. When I visit Chennai Central Rly Stn I find large number of queue at un-reversved ticketing Counter obviously from Poor gentry.We see a number of instances where MPs or MLAs (who should lead us by their conduct) free travel passes are misused or they travel with another companion as wife etc. These instances are so widespread that it does not evoke even curiosity but just a shoulder shrug.

But luckily I see that it has shifted the focus from SBI to Rural India. That is a penny priced stock waiting for its true valuation.

Never mind the fate of Dr. Kurien. A pioneer is a Pioneer. And time is too short to judge his worth. I am sure after 100-200 years people may not believe that such a man could have existed ever- a legend perhaps.

And he is a Human being afterall entitled for his share of frailty. Also there is a time for everything.

Now if I say, empower the rural India, I would sound like Politician. But then that is what needs to be done. Make their life easy while trying to get access to our financial systems, education system and health care system. Encourage them to to entrepreneurship. Help them setup their own chosen profession. Corporate India does have a responsibility towards rural India.

I will give you a definition of a " failed state"- The state which is not able to give hope to its citizen and enable its fulfillment is a failed state.

Let us give them hope and enable them to fulfill their hope. Trust them with your money.

This simple step will create the real opportunity for solid growth.

infrastructure, consumer goods, services and what not.

Ashis has reminded us of those dire days when we pledged /sold family gold(it is supposed to be worst case scenario) to pay off our debts. We have become now adult state and then must behave like an adult with a mature persona.
Yes Ashis, you are very correct in saying that we have grown up.

And Amit , we all want to see what you also want to see. There is hope and so there is future for us.

That is why I keep saying Sensex will not look back for at least 20 years.Ups and downs are part of it.

Its the positive factor that matters the most. This will put pressure on planners to look for opportunities of growth in other areas. Market economy will force them to recognize the strength of rural india as well.

And yes we can see SBI at 10000. One of my relatives held stock at Rs 15 and sold at rs 125 years ago telling that he was lucky to escape the meltdown but lost some Rs. 30 in the bargain . SBI has largest number of rural branches in India. so from 1700 to 17000 is not an impossible dream.

An I didn't mean to offend you in any way, if that is so the I apologize for that.
And amen to words of darlingboy.

Pankaj

I didnt mean dishonesty,i meant poverty.

Lemme share something.
I come from UP,and if you go to rural UP you will know what i mean.Ive seen and been to rural areas in Orissa,WB(my home state),Bihar and some parts in MP and Chattisgarh.Giridih in Jharkhand etc(the santhal and backward industrial belt)

What i found common in all these places were,u had lowly wages of 20 odd rs still in force,if u took out 500rs note,chances were rare that u'd get some change,because no one has that kind of money,they dont even make that kind of money.U get samosa for 50paise,tea for re1.Tomatoes and potatoes re1-2 for kilos.

Majority of India lives on streets.Recently when i have come down to Kolkata,ive found more ppl living on streets and sleeping on pavements than 5 yrs back.

Go to the Rly station at 3 in the morning u will find many sleeping there on floors.

I am not a pessimist,but i like to see real development as Uasish pointed out,i do not get offended by anyone and any comments,instead it just eggs me on to do better next time.

It could also be that ive got a complete one sided picture.

Anyways it was nice exchange of views.

Uasish,straight from the heart revelations.

Hi amit

sure I agree with you . I also saw those parts of India you mentioned and few more from South India and Western India.(except North East). And things are not very different there either.

I feel you have done a great service by this debate and I owe it to you as it helps bring concensus abt next step in development, which all of us would like to see.

I know you never meant to offend anyone.

Pankaj