Warrier's blog

Letters: Responsible group : With reference to A K Bhattacharya's excellent piece, 'Keeping the PM in the loop' (October 31), unlike Cyrus Mistry's 'open letter' reacting to the turn of events that culminated in his exit, Ratan Tata's two letters had clear positive objectives... RESPONSIBLE GROUP With reference to A K Bhattacharya’s excellent piece, “Keeping the PM in the loop” (October 31), unlike Cyrus Mistry’s “open letter” reacting to the turn of events that culminated in his exit, Ratan Tata’s two letters   had clear positive objectives in the given context. The Tatas have a 150-year-old history behind them and perhaps they stand alone as the single private sector group which has striven to protect public interest and taken part in India’s economic growth through thick and thin, working on trust principles. The opening paragraph of the group’s profile on the website explains the Tata approach. It reads: “To improve the quality of life of the c

A K Bhattacharya: Keeping the PM in the loop : Speculation will be rife about why Ratan Tata wrote a letter to Narendra Modi after the board of Tata Sons removed Cyrus Mistry as its chairman... Proving Trust-worthiness This refers to A K Bhattacharya’s excellent piece “Keeping the PM in the loop” (Business Standard, Raisina Hill, October 31). Unlike Cyrus Mistry’s ‘open letter’ reacting to the turn of events that culminated in his own exit, which neither added glory to his personal image, nor added value to the net-worth of the Group of companies he was heading for a short period (4 years out of more than one and a half century of Tatas) and in which he himself had stakes much beyond the job he lost, Ratan Tata’s two letters had clear positive objectives in the given context.  Tatas  have  a 150 year history behind and perhaps stands alone as the single private sector group which has striven to protect public interest and participated in India’s economic growth through th

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The life : Banking history repeats itself, says commemorative book on SBT... Tradition of Trust — The Saga of State Bank of Travancore*   Excerpts: "The book launch coincides with an unexpected turn of events — SBT readying to sign off into history with its proposed merger with SBI. This has plenty of precedents, one gets to learn from the book. Authored by JPN Thampi, T Balakrishnan and KT Rajagopalan, former SBT officials, it looks at banking as it evolved in Kerala. Tradition of Trust — The Saga of State Bank of Travancore  draws a striking parallel between the current upheavals in the industry and the vicissitudes of the 1930s and 1940s." *Use the link to read a short review of this book by Vinson Kurian published in The Hindu Business Line.

Faith column: M.A. Manickavelu on Lord Shanmukha's grace : Asking others for monetary help makes the supplicant uneasy, because when one asks money from another, one must be prepared for rudeness, insults and rejections. That is why Saint Vallalar prayed to.... The Hindu, October 29, 2016 FAITH THE ART OF GRACEFUL GIVING Asking others for monetary help makes the supplicant uneasy, because when one asks money from another, one must be prepared for rudeness, insults and rejections. That is why Saint Vallalar prayed to Lord Shanmukha for the quality of not asking anyone for anything, said M.A. Manickavelu in a discourse. Petitioning the Lord for moksha and prostrating before Him are desirable, but to fall at the feet of a benefactor is to be shunned. But in case someone does come to one seeking financial aid, then one must readily give him what he needs. That is why Vallalar also prays that he should never refuse help to anyone. The poet Avvaiyar ranked acts of gen

IDBI Bank officers threaten strike on November 28 over wage revision issue : The officers’ body also wants the New Pension Scheme to be implemented prospectively... An untimely Obit for Indian Pension System This refers to  Vinson Kurian’s  report captioned “IDBI Bank  officers threaten strike on November 28 over wage revision issue”(The Hindu Business Line, October 29).  The NPS issue mentioned in the report may need some elucidation.  The present  National  Pension System (Originally introduced through an executive order for  central government employees (other than Defence Forces-they were excluded  temporarily by a saving clause)  joining  on or after January 1, 2004 has none of the features of the Defined Benefit  Pension Scheme enjoyed by government employees who were in service as on, or  had retired on or before, December 31, 2003. The NPS, as it stands now, is more  similar to the Contributory Provident Fund Scheme with some difference in fund  management and pattern o

WEEKEND LIGHTER: Science is a Great Giver (October 29/30, 2016, No.45/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to   mgwarrier@gmail.com WEEKEND LIGHTER WISHES ALL ITS READERS HAPPY DIWALI I Opening Remarks Coping with the technology outburst** M G WARRIER Media reports say that 32 lakh debit cards issued by several banks including State Bank of India, ICICI Bank, YES Bank, HDFC Bank and PNB are being replaced  by new cards with more security features. The National Payments Corporation of India has come out with a statement quantifying the damage: “The complaints of fraudulent withdrawal is limited to cards of 19 banks and 641 customers. The total amount involved is Rs1.3crore as reported by various affected banks to NPCI.” It is comforting to see that quick corrective action is being initiated by authorities as and when malpractices are noticed. The credibility of the system can b

Cyrus Mistry hits back : Cyrus Mistry’s outburst against Ratan Tata and the directors of Tata Sons following his unceremonious removal from the post of chairman of the company cannot be shrugged off as motivated or unwarranted... Cyrus Mistry hits back*:Does he, really? This refers to Lalatendu Mishra’s report “Tatas may face Rs 1.18 lakh cr. write-down, warns Mistry” (The Hindu, October 27). It  is intriguing that the Tata Sons Chairman  waited   to be thrown  out  to come out with so much of facts and figures to prove that the Group  was  not  anywhere  near a turnaround even after years of his stewardship.  To say it differently,  by  conceding  that he couldn’t  lead the company successfully and by supporting his statement with facts and figures, in a way, he is seeking explanation from the board, how and why he was retained at the helm so long! Tatas  have  a 150 year history behind and perhaps stands alone as the single private sector group which  strived to protect

Tatas may face Rs. 1.18 lakh cr. write-down, warns Mistry : Former Tata Sons Chairman Cyrus Mistry has said that losses caused by what he called ‘legacy hotspots’ in the Tata group could result in a write-down of Rs.1.18 lakh crore, over time. In a letter to... Defenseless Mistry This refers to Lalatendu Mishra’s report “Tatas may face Rs 1.18 lakh cr. write-down, warns Mistry” (The Hindu, October 27). It  is intriguing that the Tata Sons Chairman  waited   to be thrown  out  to come out with so much of facts and figures to prove that the Group  was  not  anywhere  near a turnaround even after years of his stewardship.  To say it differently,  by  conceding  that he couldn’t  lead the company successfully and by supporting his statement with facts and figures, in a way, he is seeking explanation from the board, how and why he was retained at the helm so long! Tatas  have  a 150 year history behind and perhaps stands alone as the single private sector group which  strived to

The Tata business : This refers to ‘Mistry's ouster, an unseemly affair’ by Raghuvir Srinivasan (October 26). On the face of it, the conclusion that “The circumstances do not enhance the Tatas’ reputation of observing the highest standards... The Tata business This refers to ‘Mistry's ouster, an unseemly affair’ by Raghuvir Srinivasan (October 26). On the face of it, the conclusion that “The circumstances do not enhance the Tatas’ reputation of observing the highest standards in corporate governance” may seem factual. The Tatas have a 150-year history and stand alone as the single private sector group which has striven to protect public interests and has participated in India’s economic growth through thick and thin, working on trust. If there is one reason for the unceremonious exit of Mistry it is unlikely that anyone outside Tatas may come to know of it. It could be the culmination of several things over the last few years affecting the fortunes of the Tata group,

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Mistry’s ouster, an unseemly affair : The circumstances do not enhance the Tatas’ reputation of observing the highest standards in corporate governance... Underestimating Tatas' Legacy Tatas  have  a 150 year history behind and perhaps standsalone as the single private sector group which  has striven to protect public interest and participated in India’s economic growth through thick and thin, working on trust principles. The opening paragraph of the Group’s profile on the website explains the Tata approach to business. It inter alia says:  'To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust'. If there is one real reason for the unceremonious exit of Cyrus Mistry on October 24, 2016, it is unlikely that anyone outside Tatas may come to know of it. Probably, it may be the culmination of several events during the last few years affecting the fortunes of Tata Group, for wh

Coping with the technology outburst : Media reports say 32 lakh debit cards issued by different banks are being replaced with cards with more security features. The National Payments Corporation of India has said complaints of fraudulent... Technology outburst The wider issue here is the fast-forward mode technology is adopting in order to compete in a market that is not much worried about ethics and morals. The forced withdrawal of products from the market by car manufacturers, food product giants and smartphone producers incurring heavy losses are fresh in our memory. Something is wrong somewhere, and the earlier we fix it the better for everyone Please read my full article using the link above and offer your views. M G Warrier

Rate cut: Economic panacea for all ills? : Quite predictably, a good part of the media and a good number of commentators have applied ornithological metaphors to describe the 25-basis points cut in the policy rate by the RBI in its fourth bi-monthly... Let MPC evolve Is refers to the story “Rate cut: Economic panacea for all ills?” (The Hindu, October 24). It is not clear whether the authors did access the minutes of the maiden two day(October 3/4) meeting of the newly constituted Monetary Policy Committee, which, inter alia said: “MPC reviewed the surveys conducted by the Reserve Bank to gauge  consumer confidence, households’ inflation expectations, corporate sector performance, credit conditions, the outlook for the industrial, services and infrastructure sectors, feedback from industry associations and the projections of professional forecasters. The Committee reviewed in detail staff’s macroeconomic projections, alternative scenarios around various risks to the outlook an

T C A Srinivasa-Raghavan: Proximate bottoms of shallow barrels : Time has come to award the economics Nobel just once in five years... Nobel idea! “Proximate bottoms of shallow barrels” by TCA Srinivasa-Raghavan (Business Standard, Line and Length, October 24), gives deep insight into the legacy and relevance of Nobel prize as an instrument to promote academic work to excel for the benefit of humanity. Let Nobel Committee consider the suggestions for making the prize more efficient and relevant. That the writer missed the work of a Nobel prize awardee and was caught unawares when asked to write about him cannot be a reason to make the economics Nobel award a quinquennial affair. It is another matter, if Nobel Committee decides not to award Nobel for economics or any other stream in a particular year for want of qualifying nominations. We have been watching sharing of the prize by equally talented scholars in some cases.  Back home, let us consider what can be done in In

India needs to talk about mental illness : At least 13.7 per cent of India’s general population has various mental disorders; 10.6 per cent of them require immediate interventions.While nearly 10 per cent of the population has common mental... Excerpts: " Due to the stigma associated with mental disorders, nearly 80 per cent of those with mental disorders had not received any treatment despite being ill for over 12 months, the study says. Poor implementation of schemes under the National Mental Health Programme is largely responsible for this. Dr. Gururaj says that there is also a paucity of mental health specialists, pointing out that mental disorders are a low priority in the public health agenda. The health information system itself does not prioritise mental health."

The unfinished business of job creation : If Modi is serious about fulfilling his poll promise on employment generation, he must go big on labour reforms... Poverty elimination and social security Difference of views on issues like this is quite normal and natural. But discussions like this pave the way to solutions for several pending issues. Unless India is able to improve employment generation rate and ensure progressive improvement in skills and wages the economic growth induced by other interventions will be short-lived. The correlation between poverty elimination and social security (this includes the security of those now dependent on police protection) need to be recognized. M G Warrier

Rathin Roy: Visioning India 2032 : PM has tasked NITI Aayog to deliver a 15 year vision for India. Underpinning this commendable initiative is the widely shared assumption that India will grow at least at 8 per cent... Excerpts: " The Prime Minister has tasked NITI Aayog to deliver a 15 year vision for India. Underpinning this commendable initiative is the widely shared assumption that India will grow at least at eight per cent on average every year. This would mean that India's gross domestic product (GDP) would at least triple by 2032. Economists think of the consequences of this by asking: How will this growth alter the sectoral, investment, and trade composition of the economy? Will agriculture shrink, and manufacturing increase, in importance? Will services be as they are today with low-end personal ..."

WEEKEND LIGHTER: Relevance of Compensation (October 22/23, 2016, No.44/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to   mgwarrier@gmail.com I Opening Remarks Relevance of compensation M G WARRIER The notification inviting applications for the post of Deputy Governor, Reserve Bank of India appearing at RBI website, inter alia, says: 1.       Qualifications and experience (i)                  Persons who have at least 25 years of work experience in Public Administration  including experience at the level of Secretary or equivalent in the Government of India. (ii)               Or from among persons who have at least 25 years of work experience in an Indian or International Public Financial Institution. (iii)             Or from among persons of exceptional merit and track record at the national or international level in the relevant field(s). 2.       Age: Not more than 60 years o