Wednesday, November 23, 2016

839 Mr. Chandra Babu Naidu should stop riding over the backs of Public Sector Banks in Andhra Pradesh

One common factor Mr. Narendra Modi, our beloved Prime Minister of India, and Shri Nara Chandra Babu Naidu, our beloved Chief Minister of Andhra Pradesh share between themselves is, they cherish to ride over somebody else. While, Mr. Narendra Modi wants to pontificate to the Supreme Court Chief Justice, Supreme Court Justices, High Court Chief Justices, and Judges of States, Mr. Chandra Babu Naidu wants to ride over the backs of Public Sector Banks in Andhra Pradesh. Mr. Narendra Modi, soon after his coming to power, conducted a seminar for all judges in Delhi, and tried to impress upon them, so as to make them more ductile, malleable and pliable to the new BJP Rule. Mr. Nara Chandra Babu Naidu, frequently uses the monthly State Level Bankers' Meets organised under Lead Bank Scheme, to make the State Level Bank Bosses more ductile, malleable, and pliable. Though no judge in case of Delhi, and no banker in case of States have openly spoken about their resentment against political and bureaucratic intrusions into their terrains, strains can be read direct, or between the lines from the Media Reports.

Our Telugu newspapers and TV Channels have forgotten or deliberately omitted, to report the problems of Andhra Pradesh I.A.S./I.P.S. Officers, and the State Level Bankers, owing to long review meetings (a sort of lengthy haranguings?) by Mr. Chandra Babu Naidu. If any of the reporters care/cared to have at least an informal talk with the I.A.S./I.P.S. Officers and State Level Bankers, they MIGHT/WOULD have at least, off the record, expressed their dissatisfaction over the manner in which Mr. Naidu is hammering them with too-many, and too-long-hour review meetings video conferences / as well as personal-attendance jumborees, as a result of which the Officials are unable to attend to their legitimate duties prescribed by Indian Constitution, Indian Laws, various Government notifications and circulars.

If all their time spent in Conference Chairs, ears glued to what the CM says, with water bottles, and probably some cashew nuts to munch in front of them, by the time they go back to their offices (if they chose to go back to their office direct), or to their homes (if they chose to go back to their homes after the tedious-tiresome-monotonous-unilateral meetings, they will be ending with bloated stomachs filled with mineral water, some badam/cashew nuts/cookies and some intestinal gases. It is, none of our concern, after that, they may or may not be going to some night clubs or bars to unwind themselves from the morning's debacles / proceedings.

Deccan Chronicle News Paper Print Edition dated 23.11.2016, Page 1, has highlighted the problem with the heading CM MEETS, A PAIN. Lengthy talks make babus, bankers unhappy. I am unable to, at this moment, provide a link to this news report. I quote below some of the relevant things:

*A Senior IAS Officer said that the State Government has no role in banking affairs.

He said: There is no use holding meetings with local bankers and officials.

The bankers said that they have to act according to the directions of RBI,

Every meeting conducted by CM Naidu takes not less than four hours.

Monday's meeting took six hours.

CM trying to boss over Bank Officers, without any jurisdiction

Mr. Chandra Babu Naidu, also seems to have a habit of "instructing" State Level Bankers, for which he has no authority or powers. State Level Bankers are nodding to Chief Minister's utterances, only out of due courtesy, for the Head of the Government of the State.


Besides, earlier, State Government used to place some Term/Fixed deposits with various banks as "baits" and "lures". Now, as the State Government has transferred most of the funds in Term Deposits/ Bank Savings Accounts to GOVERNMENT PD ACCOUNTS OF TREASURES, State Level Bankers have lost their incentives to be the slaves of the State Governments. Earlier, Bankers used to be apprehensive that if they displease the Chief Ministers, the concerned State Govt. Departments may withdraw their Fixed Deposits. Now, there is no such fear.


Even in respect of the agricultural debt waiver scheme promoted by Andhra Pradesh / Telangana Governments, as the Governments have laid numerous impractical conditions for implementing the scheme, it appears that Banks are saddled with NPAs in respect of farmers who expected to get benefit, but could not qualify for the Debt Relief. In respect of these overdues, the State Government has at least a moral responsibility to help the Bankers in recoveries. Instead, Ministers of Andhra Pradesh seem to instigate farmers to question their Bankers.


State Level Public Sector Bank Officers have to abide by the instructions received from their Central Offices, Reserve Bank of India. Even Government of India is not expected to directly instruct State Level Bankers. Central Government has to route its instructions through proper channel i.e. RBI, and the Central Managements of Banks, most of which are in Mumbai, and other Metros.


Mr. Chandra Babu Naidu, by asking farmers not to pay Bank Loans during his 2012 Election outings, has done great damage to the Rural Institutional Credit System in Andhra Pradesh and Telangana. So far, both the Telugu States have not recouped themselves from the damage caused by mass-defaults of farmers. It is a different thing if some debt-bitten farmers, or drought/flood struck farmers default in repaying their loans. Even those farmers who got good crops, good prices, good markets, defaulted, because Mr. Naidu had given a call.


Now, after the demonetization by Mr. Narendra Modi, the sufferings of the poor farmers in Andhra Pradesh and Telangana aggravated. They are unable to pay wages to agricultural laborers, harvest-machine owners, rabi-seed suppliers, etc. because everybody insists on small denomination new currency. Mr. Chandra Babu Naidu's Assistants say that they have written many letters to RBI, seeking supply of notes.

when will new Rs. 500 notes appear in Andhra Pradesh?

But, not much seems to have emerged. RBI seems to have its own road map and schemes of priorities among States. Rs. 500 denomination new notes seem to have been released and reached in other States, while in Andhra Pradesh, we are not so far able to see them. Rs. 500 new notes could have eased the situation substantially. Mr. Naidu can ring up to mr. Narendra Modi, and Mr. Arun Jaitley, who are his pals, and Mr. Venkaiah Naidu, who is his bossom friend, to do something real.

To Continue. सशेष. ఇంకా ఉంది.

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