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