Ad Here  
Making ‘my Amaravati’... GNS - 100: our first subscriber Funding the un-funded Tihar, Puzhal not different from Parappana Agrahara Moily’s bold thrust Tatas moving out of urea production... Align crops to agro climate endowments… A more liberated TN… Shipping woes of Chennai companies Cutting the nose to spite the face He continues the focus on social amelioration Why this malaise in medical education? An enemy’s enemy is a friend Which side are you, Montek? Recognition to role of NBFCs.... Noble nonagenarians... A yen for wastage… Not just in-laws (and outlaws); they’ve renowned academics at the helm! L&T- the specialty of special purpose vehicles Sri Lanka votes for change Streamlining mandatory third party cover SoA @ 80 Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Haul over the coal Plummeting profits of PSBs CII projects higher growth… MHC should not return to its old indisciplined ways Rs.1600 crore paper board plant of TNPL When nations steal growth from one another… Of course, Gujarat is vibrant Quality silica from Neyveli Insurance companies bleeding, yet no decision on increasing FDI limit! Banning booze... Where a state respects its litterateurs… CRS, a jewel among managers, is no more. Colour-Chem’s colourful KRVS Reliance’s TV – 18 ready to launch Tamil News Channel Vibrant Gujarat Small units prefers to remain small... Permanent secretariat for TN GIM A think tank for Chennai TGS- The king storyteller TN – agglomerate land holdings without alienating ownership Don’t seem to feel the pulse… For whom the MIDS bell tolls? Wanted: a second airport for Chennai Where is Rajaji? No engine for this car Airlines in India: cost and space Like Hinduism: many paths to reach God... Cleaning Ganga – relocate tanneries and install electric crematoria Shaming of Tamils by Tamil farmers at Delhi Diamond jubilee of Egmore Samskrt School The Gulf aviation boom CIPET hqrs to stay at Guindy – for the present? Editor's Notes There was flood of milk. Reason: no milk commissioner! 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 Shanti and Sadhana through Music Building loyalty through the stomach More tributes to GR Delhi is distant Gas is the way forward S Ramanathan – a versatile musician, musicologist Fall in crude prices help in oil sector reform How Air-India loses customs... The Ports’ Pasha expands into Tamil Nadu Sweeter prospects for sugar Kulandai was a giant R Sridhar steps down as CEO of Shriram Capital Marketing expert Balagopal is no more Online not in line with brick and mortar businesses... Air Asia India will set new benchmarks for budget travel Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Tax agriculture Remembering Indira Sivasailam... WTO Meet: resolved to meet again Revive development banks... Fortune 500 review The ‘Jayanthi Tax.’ When online building permits work…. Russi Mody – a tribute GM Technology at last! B H Kothari - a tribute Adapt Vajpayee dinner diplomacy Maximising the micro pricing … TN-leverage strength of BHEL, NLC... Tribute – UCAL Selvan… Fortune for Indian Airlines Welcome GST A Grand Finale for SN’s MS centenary at the US… Auto components surge… Valli, they are more marginalised Solar, solar everywhere … Convulsions in The Hindu Odisha: spectacular win by Naveen Patnaik Poor representation for Kerala and TN in Cabinet A rich pool of talent not utilised…. F C Kohli - his concerns all embracing Protest masters... Delhi returns to BJP Make standards certification mandatory... An informal presentation - analytical, forward locking... Return to king coal for urea... Polls and promises Solar thermal shines… Dr C Rangarajan returns to Chennai Come elections, come advertisements... Strengthen the base... When TN politicians can emulate Kerala's Multi-faceted Venkat The brown list of Venkitaramanan Breaththrough in malaria control Focus on quality of power - its only around 170-180V More Shakthi to Das’ elbow The few handicaps... IAS invades NDDB... The rise and rise of KCP Fuel for thought Inflation: are we emulating Argentina and Brazil? Lesson from Chandrababu Naidu Adharma of opposition politics The balancing act Naidu will soon build a new Hyderabad More heat than light Revving up the manufacturing sector Intellectual of rare qualities Welcome changes that testify to Jayalalithaa’s return to health The ‘Ayyo-yes’ is no more Put expensive assets created to use... West Bengal: mindless malignancy …and of a popular trade leader Kudos to NDTV... PPP mode for upgrading Corporation Hospitals Roaring Ro-Ro facility A friendly business group The sea- saw battle continues... Limit foreign borrowings to hi-tech, export potential projects... A proud Madrasi Scientists urged to take up farmer-oriented research Land reclamation from sea appears cheaper! Things happen by accident and not by design... Computation of GDP – conundrums continue Alexa – Talking Wikipedia EVM is tamper-proof London, London Narayan Mu Sigma – is no more Demise of a media baron... Quality education through the PPP mode More Shakti to resource mobilisation... The Swadeshi Trump Music happens Tribute A welcome initiative by the judiciary Discoms deserve better… A glass full of corruption The nuclear option Robber barons everywhere When small is no larger beautiful.. Editor's Says Engineering seats go abegging Why land prices zoom in TN? Secularism and anti-Hinduism Delhi Chalo... Kinetic Karnataka Wise Presidents When Ratan Tata visited SRM China invests in India Excel Generators provide the vital back-up When the President was rendered homeless… IPL - no surprise this scam Silver Years of Madras Musings TN accounts for the largest recruits by the IT sector Tribute – Manikam Ramaswami All eyes on Sankara Nethralaya Godspeed, Chief Minister JJ Readers' Mail The Jan Dhan bonanza Telangana in top gear… Muffled voices for merit… Welcome focus on core competence A professional at the helm of IRDA... Delhi is distant… Sweet news for TN sugar mills ONGC at KG Basin TIAM turns a full cycle IPL type auction for VCs? Tough task taking states together New IT products of Ramco in the pipeline… Parliament in paralysis... Measuring roof tops in terms of KW/MW Bihar elections - the Rajaji formula worked Preserving for the future Gay abandon in pricing Boy, can you beat these? Five star activism stalls development activity Another Indian music maestro at the UN S V Raju – a ‘good’ true liberal Lalu’s envy, India’s pride Build close rapport with business leaders TELANGANA at last…BUT The power-full Hindujas He saved millions from starvation... Naidu’s return augurs well for Seemandhra Nuclear power at the nucleus The star of Spencers is no more A Grand Finale for SN’s MS centenary at the US… A C Muthiah – his munificent bequeaths to science No mega rail project for Tamil Nadu Waning interest in public discussions… The why of tax incentives Should we change the official year? Tatas moving out of urea production... For whom the bell tolls? Modi and the lady Cement prices continue to rise… Shale gas and its shallow future Eternal support for capitalisation of PS banks Towards speedy justice Bihar – Nitish Kumar adopts the Lalu model Liberal imports idling indigenous capacities PC’s preference for professionals Tribute – M V Murugappan An inexplicable neglect No Maha Koottani in TN... Medical costs hit the roof... Road development slows down Paytm karo... L&T: focus on infrastructure and more infrastructure… Contrarian cousins Mersal magnified Pharma – overdose of copying Modi storms Silicon Valley Padma Bhushan for A Ramakrishna Welcome thrust on trade in Modi’s foreign visits... CSR and CMI: promise of another Srinivasan Ramanujan... Infrastructure funding – lessons learnt This scant respect for Law The rise and fall of Annamalai University EEC at the National Media Centre Rahman at CIC Whistle-Stop Tour of Raghuram Rajan Poor quality of university VCs Increasing non co-operation of state leaders
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.

1 2 3 4
Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236