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

Senior advocate of the Madras High Court,C Ramakrishna (CR), has varied interests. These range from taking up intricate legal issues before the Court, to experiments in horticulture, to poverty eradication and to economic and judicial issues. In recent mails, he has referred to the huge loss suffered by the Punjab National Bank and wonders whether the regulator RBI had not discharged its function effectively: “what was the position of the banks when Raghuram Rajan took charge as Governor of RBI? I think it is his duty to set right the financial position of banks. Evidently, he didn’t. Otherwise it should not have seen this level of loss.”

From Dr. Subramanian Swamy to several others, there are complaints about Rajan’s stewardship of RBI. I notice a facile attempt to blame the RBI for the sluggish economic growth and inadequate job creation too! These are in the domain of the fiscal administrators in Delhi and also caused by systemic deficiencies that have not been attended for long.

Bad loans of banks are largely the result of government’s profligacy, especially of finance ministers P Chidambaram and Pranab Mukherjee, who opted to go for massive borrowings, hoping to prime the economy. The UPA II government announced massive projects for the infrastructure sector - mining, ports, power, roads, transport… without proper linkages of raw materials, tight construction schedules through timely clearances and adequate funding.  Dozens of companies plunged into projects without detailed preparation and plans. Government, keen to show development through spending and with its control over the PS banks, breezily advised the banks to lend large. These landed the public sector banks in serious crisis. N Vaghul provides a lucid explanation of this (IE March 2016).

IE has also pointed to the banks going for settlement of hundreds of loans taken by corporate borrowers at heavy discounts, often on pressure from higher ups to the bank boards.

To be fair to Rajan, through the last three years he has brought about a dramatic, welcome drop in inflation. He took a bold and extremely tough decision to clean the balance sheets of banks by directing them to report honestly the extent of non-performing assets and for making adequate provisions. It was thus that the public sector banks and the SBI, have been showing depressing balance sheets. Thanks to Rajan there is a hope on more scrupulous administration.

There is also a welcome reform related to appointment of chairmen and CEOs of PSBs: the induction of reputed professional bankers as CEOs and renowned professionals of proven merit as non-executive chairmen is also a help in  banks sprucing up their functioning.


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