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