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