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


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