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WTO Meet: resolved to meet again Diamond jubilee of Egmore Samskrt School CII projects higher growth… Build close rapport with business leaders CSR and CMI: promise of another Srinivasan Ramanujan... Bihar elections - the Rajaji formula worked Readers' Mail Nuclear power at the nucleus Convulsions in The Hindu Padma Bhushan for A Ramakrishna Sweet news for TN sugar mills No mega rail project for Tamil Nadu Kulandai was a giant Limit foreign borrowings to hi-tech, export potential projects... Road development slows down Insurance companies bleeding, yet no decision on increasing FDI limit! Sri Lanka votes for change Not just in-laws (and outlaws); they’ve renowned academics at the helm! Align crops to agro climate endowments… Quality silica from Neyveli Tough task taking states together Lesson from Chandrababu Naidu London, London Narayan Recognition to role of NBFCs.... TN-leverage strength of BHEL, NLC... S V Raju – a ‘good’ true liberal GNS - 100: our first subscriber The Jan Dhan bonanza Put expensive assets created to use... A C Muthiah – his munificent bequeaths to science Godspeed, Chief Minister JJ Tatas moving out of urea production... A proud Madrasi A Grand Finale for SN’s MS centenary at the US… He saved millions from starvation... Editor's Notes Things happen by accident and not by design... The why of tax incentives R Sridhar steps down as CEO of Shriram Capital Plummeting profits of PSBs IPL type auction for VCs? Modi and the lady When online building permits work…. Which side are you, Montek? Reliance’s TV – 18 ready to launch Tamil News Channel Solar, solar everywhere … Small units prefers to remain small... The ‘Ayyo-yes’ is no more Alexa – Talking Wikipedia Odisha: spectacular win by Naveen Patnaik The balancing act Breaththrough in malaria control The Swadeshi Trump The star of Spencers is no more West Bengal: mindless malignancy A professional at the helm of IRDA... Air Asia India will set new benchmarks for budget travel The nuclear option Naidu will soon build a new Hyderabad Kudos to NDTV... Airlines in India: cost and space How Air-India loses customs... More Shakthi to Das’ elbow SoA @ 80 Inflation: are we emulating Argentina and Brazil? A yen for wastage… Gas is the way forward Intellectual of rare qualities More Shakti to resource mobilisation... 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Russi Mody – a tribute Return to king coal for urea... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Telangana in top gear… Roaring Ro-Ro facility Don’t seem to feel the pulse… Come elections, come advertisements... Moily’s bold thrust Tatas moving out of urea production... Why land prices zoom in TN? Mersal magnified Demise of a media baron... Quality education through the PPP mode Poor representation for Kerala and TN in Cabinet This scant respect for Law F C Kohli - his concerns all embracing Multi-faceted Venkat All eyes on Sankara Nethralaya The brown list of Venkitaramanan ONGC at KG Basin Dr C Rangarajan returns to Chennai Modi storms Silicon Valley Naidu’s return augurs well for Seemandhra Should we change the official year? 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The sea- saw battle continues... Delhi is distant… Tribute – UCAL Selvan… The rise and fall of Annamalai University An informal presentation - analytical, forward locking... Funding the un-funded Poor quality of university VCs Adapt Vajpayee dinner diplomacy The few handicaps... Secularism and anti-Hinduism B H Kothari - a tribute Protest masters... Another Indian music maestro at the UN Maximising the micro pricing … When small is no larger beautiful.. When Ratan Tata visited SRM Shale gas and its shallow future S Ramanathan – a versatile musician, musicologist TELANGANA at last…BUT Make standards certification mandatory... Colour-Chem’s colourful KRVS Revive development banks... Fortune 500 review Wanted: a second airport for Chennai Focus on quality of power - its only around 170-180V Banning booze... Rs.1600 crore paper board plant of TNPL Delhi Chalo... MHC should not return to its old indisciplined ways Fortune for Indian Airlines Where is Rajaji? A more liberated TN… When TN politicians can emulate Kerala's Online not in line with brick and mortar businesses... Paytm karo... Five star activism stalls development activity Land reclamation from sea appears cheaper! Tihar, Puzhal not different from Parappana Agrahara Mu Sigma – is no more Making ‘my Amaravati’... Cement prices continue to rise… Contrarian cousins L&T- the specialty of special purpose vehicles When nations steal growth from one another… Parliament in paralysis... TN – agglomerate land holdings without alienating ownership The rise and rise of KCP Of course, Gujarat is vibrant Why this malaise in medical education? Polls and promises China invests in India Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Strengthen the base... Tax agriculture Music happens PPP mode for upgrading Corporation Hospitals An enemy’s enemy is a friend A welcome initiative by the judiciary Noble nonagenarians... Like Hinduism: many paths to reach God... Rahman at CIC TIAM turns a full cycle Tribute – Manikam Ramaswami The Ports’ Pasha expands into Tamil Nadu Building loyalty through the stomach Welcome GST Haul over the coal Permanent secretariat for TN GIM Waning interest in public discussions… Streamlining mandatory third party cover IAS invades NDDB... Medical costs hit the roof... New IT products of Ramco in the pipeline… Robber barons everywhere The Gulf aviation boom Welcome thrust on trade in Modi’s foreign visits... Adharma of opposition politics EVM is tamper-proof Excel Generators provide the vital back-up Where a state respects its litterateurs… More heat than light GM Technology at last! EEC at the National Media Centre When the President was rendered homeless… Editor's Says Preserving for the future There was flood of milk. Reason: no milk commissioner! TGS- The king storyteller Remembering Indira Sivasailam... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Whistle-Stop Tour of Raghuram Rajan Bihar – Nitish Kumar adopts the Lalu model Tribute
 
Readers' Mail
“It’s Raghuram Rajan’s duty to set right the financial position of banks. Evidently he didn’t,” says lawyer C Ramakrishna.

Senior advocate of the Madras High Court,C Ramakrishna (CR), has varied interests. These range from taking up intricate legal issues before the Court, to experiments in horticulture, to poverty eradication and to economic and judicial issues. In recent mails, he has referred to the huge loss suffered by the Punjab National Bank and wonders whether the regulator RBI had not discharged its function effectively: “what was the position of the banks when Raghuram Rajan took charge as Governor of RBI? I think it is his duty to set right the financial position of banks. Evidently, he didn’t. Otherwise it should not have seen this level of loss.”

From Dr. Subramanian Swamy to several others, there are complaints about Rajan’s stewardship of RBI. I notice a facile attempt to blame the RBI for the sluggish economic growth and inadequate job creation too! These are in the domain of the fiscal administrators in Delhi and also caused by systemic deficiencies that have not been attended for long.

Bad loans of banks are largely the result of government’s profligacy, especially of finance ministers P Chidambaram and Pranab Mukherjee, who opted to go for massive borrowings, hoping to prime the economy. The UPA II government announced massive projects for the infrastructure sector - mining, ports, power, roads, transport… without proper linkages of raw materials, tight construction schedules through timely clearances and adequate funding.  Dozens of companies plunged into projects without detailed preparation and plans. Government, keen to show development through spending and with its control over the PS banks, breezily advised the banks to lend large. These landed the public sector banks in serious crisis. N Vaghul provides a lucid explanation of this (IE March 2016).

IE has also pointed to the banks going for settlement of hundreds of loans taken by corporate borrowers at heavy discounts, often on pressure from higher ups to the bank boards.

To be fair to Rajan, through the last three years he has brought about a dramatic, welcome drop in inflation. He took a bold and extremely tough decision to clean the balance sheets of banks by directing them to report honestly the extent of non-performing assets and for making adequate provisions. It was thus that the public sector banks and the SBI, have been showing depressing balance sheets. Thanks to Rajan there is a hope on more scrupulous administration.

There is also a welcome reform related to appointment of chairmen and CEOs of PSBs: the induction of reputed professional bankers as CEOs and renowned professionals of proven merit as non-executive chairmen is also a help in  banks sprucing up their functioning.


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