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

The NDA II government has initiated action against eight chairmen and managing directors of public sector banks finding serious irregularities associated with them. These relate to several questionable actions like spike in NPAs' bad recoveries...

IE has been pointing to the deficiencies in the system of thrusting CMDs and EDs on banks on industry- wide seniority. In such a system one noticed an ED of a bank posted as the CMD of another over

limited tenures of a maximum of five years or retirement earlier on superannuation. IE has pointed to unsavoury practices by the experience of Indian Overseas Bank. This bank had for years the CEO thrown up from the ranks accumulating the work culture of the bank as also its clientele. Those brought from outside took time to find the roots. Ambitious bankers like M Narendra used the position on self-promotion. These included carrying the favour of the Union Finance Minister, the Minister of State for Finance, and the deputy governor Reserve Bank. The bank even celebrated its founder’s day in the capital. New publications on the history of the bank were produced. Like M Gopalakrishnan of Indian Bank earlier, credit was dispensed liberally. It should not, therefore, be surprising that the bank leads in the matter of NPAs. The second quarter results show a staggering 29 per cent increase.

There are reasons to suspect lapses just due to suspicious deals too. A chartered accountant specialising in banking deals narrated this incident:  sick company with huge bank debt sought the assistance of this chartered accountant. There was accumulated debt of around Rs 10 crore. The CA established contact through some intermediaries with a high profile politician having close links with the North Block. A deal was struck, whereby a settlement was made for less than half the amount due. A hefty fee was paid in cash through carefully delineated channel to this high profile politician. The CA said that such settlements were legion. The powerful Congress politician had huge incomes on such settlements, impoverishing the banks.

Bank chairmen adapted the noblesse oblige policy and expected due favours from the boss at the North Block. The appointments of chairmen of banks were done on an arbitrary manner through an opaque process as happens in appointments of vice chancellors of state  - run universities in Tamil Nadu.

The NDA government has announced a transparent system in the selection and appointment of chairman and executive directors of public sector banks. This needs to be commended.

Yet another welcome step by the Modi government is the plan to offload shares in excess of 51 per cent. In the present boom in the stock market, such a measure can help banks raise the needed resources for increasing the capital in accordance with the Basel norms. It is unacceptable for public sector banks to look for the government to capitalise them eternally.  Large private banks like HDFC and ICICI raise the needed capital on their own. Modi would do well to proceed with the plan to reduce state ownership to 51 per cent, to start with and progress to 26 per cent in due course. In this process he should ensure that such large institutions would stand on their own.

 

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