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The nuclear option MHC should not return to its old indisciplined ways Shanti and Sadhana through Music Air Asia India will set new benchmarks for budget travel Gay abandon in pricing The few handicaps... Towards speedy justice Sweeter prospects for sugar When nations steal growth from one another… Computation of GDP – conundrums continue Which side are you, Montek? A think tank for Chennai CRS, a jewel among managers, is no more. TGS- The king storyteller Measuring roof tops in terms of KW/MW Return to king coal for urea... L&T: focus on infrastructure and more infrastructure… Tatas moving out of urea production... Silver Years of Madras Musings Adapt Vajpayee dinner diplomacy The power-full Hindujas Increasing non co-operation of state leaders An informal presentation - analytical, forward locking... Poor quality of university VCs 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 An inexplicable neglect Modi and the lady A more liberated TN… Diamond jubilee of Egmore Samskrt School When small is no larger beautiful.. A C Muthiah – his munificent bequeaths to science Put expensive assets created to use... A rich pool of talent not utilised…. Why land prices zoom in TN? Like Hinduism: many paths to reach God... Where is Rajaji? Quality silica from Neyveli Padma Bhushan for A Ramakrishna Roaring Ro-Ro facility F C Kohli - his concerns all embracing Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Parliament in paralysis... Build close rapport with business leaders Pharma – overdose of copying Small units prefers to remain small... Fortune 500 review Welcome GST EEC at the National Media Centre Should we change the official year? 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TIAM turns a full cycle TELANGANA at last…BUT Nuclear power at the nucleus The rise and rise of KCP Maximising the micro pricing … Streamlining mandatory third party cover Music happens S V Raju – a ‘good’ true liberal Infrastructure funding – lessons learnt Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Poor representation for Kerala and TN in Cabinet A Grand Finale for SN’s MS centenary at the US… Naidu will soon build a new Hyderabad CSR and CMI: promise of another Srinivasan Ramanujan... Whistle-Stop Tour of Raghuram Rajan Vibrant Gujarat Telangana in top gear… He continues the focus on social amelioration Welcome focus on core competence GNS - 100: our first subscriber More tributes to GR PPP mode for upgrading Corporation Hospitals B H Kothari - a tribute A proud Madrasi A Grand Finale for SN’s MS centenary at the US… More Shakti to resource mobilisation... How Air-India loses customs... S Ramanathan – a versatile musician, musicologist Convulsions in The Hindu Demise of a media baron... Medical costs hit the roof... Scientists urged to take up farmer-oriented research Rahman at CIC New IT products of Ramco in the pipeline… IPL - no surprise this scam Another Indian music maestro at the UN The Jan Dhan bonanza Online not in line with brick and mortar businesses... Permanent secretariat for TN GIM Shaming of Tamils by Tamil farmers at Delhi R Sridhar steps down as CEO of Shriram Capital ONGC at KG Basin Discoms deserve better… Valli, they are more marginalised Eternal support for capitalisation of PS banks Mersal magnified Haul over the coal Strengthen the base... Wise Presidents Insurance companies bleeding, yet no decision on increasing FDI limit! Sri Lanka votes for change When Ratan Tata visited SRM Engineering seats go abegging L&T- the specialty of special purpose vehicles Fall in crude prices help in oil sector reform Limit foreign borrowings to hi-tech, export potential projects... West Bengal: mindless malignancy Welcome changes that testify to Jayalalithaa’s return to health Quality education through the PPP mode Waning interest in public discussions… Liberal imports idling indigenous capacities CII projects higher growth… Delhi Chalo... Editor's Says Make standards certification mandatory... …and of a popular trade leader Mu Sigma – is no more The ‘Jayanthi Tax.’ Funding the un-funded An enemy’s enemy is a friend Editor's Notes The Swadeshi Trump Gas is the way forward Godspeed, Chief Minister JJ Bihar – Nitish Kumar adopts the Lalu model The brown list of Venkitaramanan The ‘Ayyo-yes’ is no more Protest masters... Delhi is distant… No mega rail project for Tamil Nadu Odisha: spectacular win by Naveen Patnaik Polls and promises Kinetic Karnataka Where a state respects its litterateurs… Wanted: a second airport for Chennai Cleaning Ganga – relocate tanneries and install electric crematoria The Ports’ Pasha expands into Tamil Nadu Reliance’s TV – 18 ready to launch Tamil News Channel Tax agriculture Modi storms Silicon Valley Robber barons everywhere IPL type auction for VCs? EVM is tamper-proof A welcome initiative by the judiciary Fuel for thought GM Technology at last! Readers' Mail Five star activism stalls development activity Building loyalty through the stomach Kudos to NDTV... Making ‘my Amaravati’... The sea- saw battle continues... TN-leverage strength of BHEL, NLC... Of course, Gujarat is vibrant CIPET hqrs to stay at Guindy – for the present? Naidu’s return augurs well for Seemandhra Russi Mody – a tribute The balancing act He saved millions from starvation... No Maha Koottani in TN... Shale gas and its shallow future
 
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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