978 Musings on Basil Convention, International Rating Agencies, Indian Public Sector Banks

Since the last many years, one question which has continually been tormenting me, without disappearing from my memory, although there is no need for me to remember it continuously, is: Should India ceaselessly promise this or that, to somebody or other, in numerous meetings, both formal and informal? Latest trigger for my this outpouring of mine, is the string of promises made by Mr. Arun Jaitley, Finance Minister of India, as reflected in Economic Times New Report dated 9.5.2017, while addressing some meetings in Tokyo. Click here to go to http://economictimes.indiatimes.com/news/economy/policy/government-open-to-providing-more-funds-for-banks-recapitalisation-arun-jaitley/articleshow/58584283.cms . According to the FaceBook Page of Hon. Shri Arun Jaitley, he might have been addressing the Investors' Round Table in Tokyo. Click here to go to the Facebook page of Hon. Arun Jaitley.

Some quotes from Relevant Links

"...Where more funds are required from the government, we will be quite willing to look at that. But once the health of the banks improve, we have also announced that the government will be willing to bring down its equity in the banks to 52 per cent and that can be used for banks' recapitalisation ..."

ybrao-a-donkey's personal views, not intended to be imposed on others, in the following paragraphs marked 'yb'

Citizens of India deposit their moneys with Public Sector Banks in India, based on their INHERENT TRUST IN THEIR GOVERNMENT AND ITS ORGAN RESERVE BANK. They do not bother about the Balance Sheets of the Public Sector Banks, or their Capital. After demonetisation, this trust of the People on their currency notes and their Banks, has temporarily got bruised. Of course, 'Time is the best healer'. This Trust has not been irretrievably damaged. It was only a temporary phenomenon.

Whether to hold 100% Capital, or 52% of Capital in Public Sector Bank, is a Sovereign decision to be taken by the Government. It is an internal affair of India. In addition, it will not be prudent for Indian Public Sector Banks to issue Shares to Foreign Investors, whether 'individual' or 'institutional'. When Private Banks in India were nationalised in 1969, one of the principles adopted was 'Public Funds should not be controlled by Private Individuals and Institutions. Reason: Private Industrialists had a dirty habit of diverting Private Bank funds to their own Companies surreptitiously. If it is not safe to allow Indian Private individuals and institutions to control people's funds deposited with Banks, where is the question of allowing Foreign Individuals and Institutions to invest in Indian Public Sector Banks?

It is not clear why Hon. Jaitley is so devotedly, and dedicatedly promising the Government's bringing down its share to 52% in Indian Public Sector Banks, to Foreigners whether existing investors or prospective investors.

This is a 1000 page subject. More to write.

To continue adding / deleting / modifying. सशेष. ఇంకు ఉంది.