WEEKEND LIGHTER: Non-Performing Private Sector

WEEKEND LIGHTER*: Non-Performing Private Sector
 (May 13/14, 2017, No.20/2017)
Feel free to mail your views okn this edition of WL to mgwarrier@gmail.com
*Posted at www.warriersblog.com every Saturday.
Section III: Leisure: Karna and Krishna

Cover Story
Non-Performing Private Sector*

This refers to Anup Roy’s piece “Bad loan crisis shows signs of subsiding, says analysts” (Business Standard, May 11). Public sector banks continue to remain the whipping boy for the non-performance of assets created in the private sector. All through, the comparisons have been the percentages of gross and net NPAs accumulated in ‘public’ and ‘private’ sector banks. Rarely one reads anything about the context of formation of State Bank of India, Bank Nationalization, current business mix or share in banking business held by the two categories of banks. Remember, both categories of banks are sourcing their resources from public deposits and are serving the same clientele.
Stricter and prudent classification of stressed assets at the instance of RBI doesn’t change the health of such assets. If PSBs are to continue to perform the role expectations of nationalization, they need a level playing field in choice of clientele, area of operation, sectors to be financed and more importantly in managing HR related issues including recruitment and compensation packages of staff.  If some un-remunerative or loss-making sectors including agriculture or social sectors have to be financed by banks for policy reasons, they should be identified by GOI and entrusted to banks for financing on mutually agreed terms, which will include compensation for losses. Here the criterion should be specialization in work and not a differentiation between public and private sector banks.
 Major portion of the so called "stressed assets of banks" are in the private sector, and all of us continue to blame the banking regulator and the Public Sector Banks which are abused as conduits for mobilization of deposits from the public and transferring the public resources to private hands by design. If citizens decided to keep their hard earned savings only with the trustworthy, reliable private sector banks(In sum this is the impression analysts are trying to build up in the minds of depositors!) only, how public sector banks will misuse public funds?
Let us ponder over, contemplate and come out with views. Taking this debate forward will be in public interest.
M G Warrier, Thiruvananthapuram
*Business Standard, May 12, 2017, Letters: “Level playing field”

Recent responses

Online comments:
I'm not an RTI Activist and therefore am not very conversant with the expectations of RTI activists. From what I read in the media, I find, some of the RTI queries seek information which can cause problems in the smooth functioning of organizations concerned. There needs to be some broad contours of self-discipline on the part of information-seekers when they approach defence, financial and medical organizations. Abuse of RTI Act can end up in weakening the cause expected to be met by the Act. In the case in question, RBI's accounting practices are really transparent and seeking documents like "all details of deliberations" that preceded Demonetization may affect future policy discussions.
M G WarriernMl_
M _
Economy in words

This refers to the report “Wrong choice of words can create big news: Panagariya” (Business Standard, April 28). In Malayalam there is a saying that ‘four men may agree, but no two women will agree’, but that was the position long back! Remembered when thought of a situation now when “four politicians may agree, but no two economists will have the same view”.
Otherwise, how one can explain the following:
a)     Post-Demonetization observations by Manmohan Singh, Amartya Sen, Raghuram Rajan, Dr Y V Reddy and Arvind Subramanian, some of  which were made controversial later.
b)    Positions now being taken by members of NITI Aayog on agricultural income. What’s wrong in having a debate on managing country’s resources? How long real issues can be swept under the carpet, just because they are politically sensitive?
Caution about choice of words coming from celebrity economists may stifle open healthydebates on current issues. After all, did we not accommodate two consecutive Economic Surveys which fancied into unchartered territories while talking about resources management?
M G Warrier, Thiruvananthapuram
*Business Standard, May 1, 2017, Letters

Private banks’ market share

This refers to the report “A lot of PSB business is now coming Private Banks’ way” (Economic Times, April 28). It will be really great, if private sector banks shift their growth focus from ‘market capitalisation’ to market share in banking business. In fact private banks’ share in banking business has been stagnating at a below 30 per cent while they scored well on several other growth and health parameters.
A real competitive comparison of performance of private and public sector banks can happen only when they have a level playing field in business growth and penetration to sectors like small and rural/agriculture loans as also administrative autonomy in managing their affairs within the regulatory framework.

Tamper-proof  EVMs

Apropos V Rishi Kumar’s report “EVMs are tamper-proof, says maker ECIL” (HBL, April 28), one finds comfort in the reassuring words of Debashish Das, CMD, Electronic Corporation of India Ltd (a PSU) printed side by side with the report “Uttarkhand High Court sends notice to poll panel over EVM ‘tampering’” filed by PTI.
The message is loud and clear. The EVMs are meant to be tamper-proof and are produced and handled with utmost care. Where allegations surface, government and judiciary are willing to probe and make efforts to make corrections and use higher levels of technology to preserve trust in the system. This is the takeaway from the Election Commission’s move to try Voter Verifiable Paper Audit Trail (VVPAT) units in future elections and the judiciary’s earnest efforts to probe into the allegations brought to notice quickly and in a transparent manner.
M G Warrier, Thiruvananthapuram



Karna and Krishna*

The best conversation between two characters from Mahabharat:

Karna asks Krishna - "My mother left me the moment I was born. Is it my fault I was born an illegitimate child? I did not get education from Dhronacharya because I was considered a non Kshatriya. Parshu-Raam taught me but then gave me the curse to forget everything since I was a kshatriya. A cow was accidentally hit by my arrow & its owner cursed me for no fault of mine. I was disgraced in Draupadi's swayamvar. Even Kunti finally told me the truth only to save her other sons. Whatever I received was through Dhuryodhana's charity. So how am I wrong in taking his side?"

Krishna replies, "Karna, I was born in a jail. Death was waiting for me even before my birth. The night I was born I was separated from my birth parents.

From childhood you grew up hearing the noise of swords, chariots, horses, bow and arrows. I got only cow herd's shed, dung, and multiple attempts on my life even before I could walk!

No army, no education. I could hear people saying I am the reason for all their problems.

When all of you were being appreciated for your valour by your teachers I had not even received any education. I joined gurukula of Rishi Sandipani only at the age of 16!

You are married to a girl of your choice. I didn't get the girl I loved & rather ended up marrying those who wanted me or the ones I rescued from demons.

I had to move my whole community from the banks of Yamuna to far off Sea shore to save them from Jarasandh. I was called a coward for running away.

If Dhuryodhana wins the war you will get lot of credit. What do I get if Dharmaraja wins the war? Only the blame for the war and all related problems.

Remember one thing Karna. Everybody has challenges in life. LIFE IS NOT FAIR ON ANYBODY. Dhuryodhan also has a lot of unfairness in life and so ha Yudhhishthir.

But what is Right (Dharma) is known to your mind (conscience). No matter how much unfairness we got, how many times we were disgraced, how many times we were denied what was due to us, what is important is how you REACTED at that time. Stop whining Karna. 
Life's unfairness does not give you license to walk the wrong path of अधर्म.

Source: A forward from my friend Rangasayee 

Really Great. Thank God I lived to read this (no, I'm not joking). True, I have been trying to be positive in a negative crowd. Still, knowing that, like me, Krishna was also keeping a count of the extent of injustice around, while smiling and living a life that others thought, he enjoyed all through, and could remain victorious
whichever side he took, is a revelation.
How sad, I couldn't get Krishna's comments on www.warriersblog.com.
He would have patted on my back, as SS Tarapore used to, till end January 2026!
Of course, thanks to Keshav, I'm still in almost daily contact with Krishna and thanks to friends like Rangasayee, Badri, Nallasivan, Jayakumar, Chittananandam, Vathsala Madam and many others, I regularly get my quota of encouragement. My regret is, when and how, I will pay back all these debt! Hope my borrowing of Goodwill and appreciation do not become NPA too soon, necessitating any amendment to the Act.
M G Warrier

Next week: Aadityahridayam


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