Good People Prefer Keeping Mum on Malpractices

After all the gang of bad persons have succeeded in persuading finance minister to impress upon D K Mittal finance secretary  to stop his flow of guidelines to banks and these CEOs of banks during their maiden meeting with Finance Minister on 18^th of this month succeeded in getting back absolute freedom to perpetuate their corrupt and foul game .

It is true that several guidelines have been issued by Mr. Mittal during last few months but what I understand they all were issued for the betterment and for improvement of sick banks. Mr. Mittal through his guidelines advised banks to stop high cost deposit, stop short term unsecured loans, stop concealment of bad assets and take legal actions against all defaulters to recover the money from defaulters. He advised banks to stop depending on bulk deposits and improve retail deposits. He asked to maintain uniformity in rate of interest offered to high value depositors and small depositors. He advised to improve Human Resource management and give chances in promotions to those officers who are real performers and not only flatterers. He framed a transparent policy and dictated banks to follow the same uniformly.It is he who advised banks to adopt Committee approach on loan sanctions and loan waivers and compromises to maintain more and more caution and to maintain more and more transparency in the system. It is open secret that power concentrated  in an individual lead to malpractices and unfair and improper use of power.

In my opinion he did nothing wrong but tried to stop malpractices widely prevailing in state run banks. He tried to impress upon bankers to maintain good quality of their assets and immediately stop the continuous growth in volume of bad assets. And if an unbiased agency or a unbiased group of persons ascertain the effects of guidelines issued by learned person Sri Mittal it will become crystal clear that there has been great improvement in the core value of these sick banks.It is only due to relentless efforts and continuous follow up that all banks accelerated their follow up and action against loan defaulters and became cautious in according new sanctions.

But in India when a group of persons cries, the voice of an individual is silenced. This has happened with Mr. Mittal who has also been restrained by RBI governor Mr. Suba Rao and who has been again put to notice by Mr. Chidambram, the Finance Minister of India. 

There is no doubt that sickness of public sector banks grew by interference of politicians and they will continue to grow their sickness if Persons like Mittal are stopped from monitoring and taking corrective action.

This is the tragedy of our country that ninety nine percent of officer and workers are corrupt and flatterer to their bosses and hence a few person like Mittal are taken to task. This happens in all offices, all departments and all organization.People do not worship work culture but like flattery culture .

This is why good people prefer keeping mum on all malpractices and irregularities  prevailing in the system. It is painful that goodness is more often than criticized by gang of persons having only bad habits. 

IN the name of democracy and Supremacy of Parliament , voices of the greatest and the best persons like Anna Hazare, Ramdeo, Arvind Kejriwal , Kiran Bedi are silenced, these persons are taken to task, CBI ,ED,IT and all other departmental officials are advised to bark behind them like mad dogs and rotten and corrupt persons like Manish Tiwari, Digvijay Singh are worshiped  and appreciated even by media men. 

Normally media men too do not like to understand economic of Indian economy and neither do they like to understand the politics of economy but they focus on their TRP and they are inclined to develop their good relations with VIPs to serve their own vested interest and hence they do not hesitate in spreading more and more negativity.It is they who malign image of good persons and glorify the bad points of bad persons through their 24 hour running commentary on TV.

It is India where person like Bal Krishna who did a lot for discovery of natural and ayurvedic medicines living along with Saint and Yoga Guru Ramdeo was put to jail for a petty mistake in issuance of Passport issued 12 years ago only because he was follower of Yoga Guru Ramdeo but no action was taken against passport office employees, police officials and other inspectors who issued false certificates of legal compliance after taking bribe  and WHO HAS BEEN PROMOTED MANY TIMES DURING LAST 12 YEARS.

I am afraid if the same corrupt culture prevails in Indian administration and Indian politics ,none of true Indians will like such improper and unhealthy activities but what can be done by a few good persons like Mittal in isolation is a million dollar question which every good citizen of India should ponder over in the overall interest of the nation?

Chidambaram hints at a less intrusive approach on banks

Bankers who attended a meeting on Saturday say finance minister has said all advisories will be routed through him

http://www.livemint.com/2012/08/20003509/Chidambaram-hints-at-a-less-in.html

New Delhi: Finance minister P. Chidambaram has indicated that state-controlled banks might have greater autonomy and the government would not interfere in their day-to-day functioning.

Chidambaram, in a review meeting with the chiefs of public sector banks and financial institutions on Saturday, said all major advisories issued by the financial services department of the finance ministry to state-run banks have to be routed through him, signalling a change in approach.

The financial services department has been criticized for trying to micro manage public sector banks through frequent advisories on operational issues. In the past few months, the ministry had asked banks to reduce short-term unsecured loans to companies, sought a reduction in bulk deposits and asked them to set up credit committees for loan approvals. 

Reserve Bank of India (RBI) governor D. Subbarao had expressed his displeasure over the frequent diktats by the ministry and said the government should influence decisions through bank boards instead.

Growth impetus: Chidambaram has asked banks to reduce equated monthly installments to revive growth in the consumer durables industry, take steps to attract more deposits, address concerns over education loans.

Chidambaram has proposed a less intrusive approach and said all advisories issued by the secretary, department of financial services, will be vetted by the finance minister, according to bankers who attended the meeting.

D.K. Mittal, secretary, financial services, did not respond to a call or message left on his mobile phone.

“The finance minister has said that the government will have a say in policy matters and RBI will look into the monitoring aspect of it,” said the chairman and managing director of a public sector bank. “The banks’ boards can decide on the policies for the banks depending on the bank’s requirements,” he said, declining to be identified.

“As it is, there are government nominees on the boards of public sector banks who can convey the finance ministry’s view,” he said.

In the meeting, Chidambaram asked banks to reduce equated monthly installments to revive growth in the consumer durables industry, take steps to attract more deposits and address concerns over education loans.

In a post-meeting media briefing, Chidambaram said no instance of interference has been pointed out by the central bank in the past 18 days, since he has taken charge of the finance ministry.

To be sure, as the largest shareholder in these banks, the government has the right to intervene in policy matters. But what had annoyed the top executives of public sector banks and the central bank was the frequent missives on various operational issues.

A finance ministry official, who did not want to be identified, argued that these directives were largely to nudge public sector banks towards more healthy banking practices as well as to ensure the government’s financial-inclusion agenda is furthered.

“The circulars are meant to push banks to follow more prudent lending practice, lend to productive and priority sectors, and strengthen their balance sheets,” he said, requesting anonymity. “Can anyone say that the steps are retrograde?”

“Most government diktats, like joint lending arrangement or on bulk deposits, are in the right direction. But issuance of circulars on a regular basis does interfere in the working of banks and decision-taking by the management,” said another banker, who had attended Saturday’s meeting. He, too, declined to be named.

In the past few months, the finance ministry has asked banks to bring down the bulk deposit ratio, including certificate of deposits to 15%; seek board approval for short-term unsecured loans to companies and back them with securities within six months; reduce interest rates in line with the central bank’s policy rates; set up credit approval committees to approve large loans; make joint lending agreements for loans of more than Rs.150 crore to corporates, and gave guidelines on deciding the agenda for a board meeting.