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