Shankar Acharya: 2016: Through a glass, hazily

Shankar Acharya: 2016: Through a glass, hazily: 20 predictions for the year - 10 for India, and 10 for the world


A good astrologer
will tell you that prediction is not meant to be ‘advance information’, but
should be treated as ‘warning signal’ to take precautions to prevent negative
things from impacting your life. Keeping this wise counsel in the background,
let us go to one out of the ten predictions made by Shankar Acharya for India. I quote:
“In spite of the very
creditable efforts of the RBI to pressure public sector banks to clean up their
balance sheets, these banks will continue to be highly stressed throughout the
year and will seek larger injections of capital support from the government.”
I add my own
“RBI Governor Dr
Raghuram Rajan will get an extension of term by 3 to 5 years when his present
term expires in September 2016.”

Now, we go back to
Shankar Acharya’s prediction about public sector banks. 2016 will see several
changes in approach to management of public sector banks. With several other
players entering the banking field so far monopolised by traditional banks,
both private sector banks and public sector banks will be forced to infuse
professionalism and transparency in their way of handling banking business,
just to retain the present share of business. The new players, payment banks
and small banks particularly can eat into their existing clientele with ease.
The private sector banks will have to improve their outreach outside the ‘creamy
layer’ and public sector banks will have to tell GOI that if they are not
allowed to do business professionally keeping in view the interests of their
real owners (depositors), their dependence on taxpayer will rise.
  M G Warrier


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