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