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Modi and the lady When Ratan Tata visited SRM Make standards certification mandatory... Editor's Says Discoms deserve better… Tribute – UCAL Selvan… Breaththrough in malaria control A welcome initiative by the judiciary Secularism and anti-Hinduism More Shakti to resource mobilisation... Building loyalty through the stomach Tribute – Manikam Ramaswami Rs.1600 crore paper board plant of TNPL Robber barons everywhere S V Raju – a ‘good’ true liberal A glass full of corruption Scientists urged to take up farmer-oriented research WTO Meet: resolved to meet again Silver Years of Madras Musings Delhi returns to BJP Computation of GDP – conundrums continue Shaming of Tamils by Tamil farmers at Delhi Multi-faceted Venkat L&T: focus on infrastructure and more infrastructure… Tatas moving out of urea production... Wanted: a second airport for Chennai IAS invades NDDB... Which side are you, Montek? For whom the bell tolls? TELANGANA at last…BUT Naidu will soon build a new Hyderabad Odisha: spectacular win by Naveen Patnaik A C Muthiah – his munificent bequeaths to science More Shakthi to Das’ elbow The Gulf aviation boom Intellectual of rare qualities TGS- The king storyteller Parliament in paralysis... An enemy’s enemy is a friend Delhi is distant When small is no larger beautiful.. IPL type auction for VCs? Permanent secretariat for TN GIM Build close rapport with business leaders A Grand Finale for SN’s MS centenary at the US… How Air-India loses customs... Airlines in India: cost and space Tax agriculture Tough task taking states together Pharma – overdose of copying Colour-Chem’s colourful KRVS Telangana in top gear… Reliance’s TV – 18 ready to launch Tamil News Channel A proud Madrasi Whistle-Stop Tour of Raghuram Rajan When nations steal growth from one another… Adapt Vajpayee dinner diplomacy He continues the focus on social amelioration Protest masters... 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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 Readers' Mail Demise of a media baron... TN accounts for the largest recruits by the IT sector Mersal magnified …and of a popular trade leader No Maha Koottani in TN... PPP mode for upgrading Corporation Hospitals EEC at the National Media Centre Moily’s bold thrust Vibrant Gujarat The Ports’ Pasha expands into Tamil Nadu More tributes to GR Cleaning Ganga – relocate tanneries and install electric crematoria Diamond jubilee of Egmore Samskrt School Making ‘my Amaravati’... Welcome changes that testify to Jayalalithaa’s return to health Kudos to NDTV... Tribute – M V Murugappan Focus on quality of power - its only around 170-180V CII projects higher growth… Medical costs hit the roof... 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When TN politicians can emulate Kerala's Inflation: are we emulating Argentina and Brazil? Sweet news for TN sugar mills Another Indian music maestro at the UN Godspeed, Chief Minister JJ A more liberated TN… Lalu’s envy, India’s pride Russi Mody – a tribute Mu Sigma – is no more TN – agglomerate land holdings without alienating ownership A friendly business group Delhi is distant… Modi storms Silicon Valley Shanti and Sadhana through Music The Jan Dhan bonanza GNS - 100: our first subscriber Tatas moving out of urea production... The brown list of Venkitaramanan
 
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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