1057 Does India need Private Banks, and their Super-Efficient Larger-than-Life-Imaged CEOs?

In the photo, we can see the present CEO of India's largest Private Sector Bank- ICICI bank Ltd., Ms. Chanda Kochchar, standing at the extreme left, with our Prime Minister Hon. Shri Narendra Modi and the Japanese Prime Minister Hon. Shinzo Abe, both in the middle. The image is courtesy rstv.nic.in and PTI, dated 12th Dec. 2015. For those who wish to study the Context and the Occasion, here is the link: Click here to go to: http://rstv.nic.in/pm-modi-abe-meet-business-leaders-assure-deeper-ties.html. The first time, we wrote about Ms. Chanda Kochchar at this blog was at ybrao-a-donkey's post No. 148 dated 20th Feb. 2014, i.e. before Hon. Shri Narendra Modi became Prime Minister of India, and immediately after the Bifurcation Bill of United Andhra Pradesh was forcibly passed in Lok Sabha, with the collusion of the BJP and Congress Parties, closing the Doors of the House, and switching off the TV Cameras and Channels. Those Readers who wish to study it, can click: Click here to go to http://problemsoftelugus.blogspot.com. Second time we wrote about Ms. Chanda Kochchar, CEO, ICICI Bank, was at our blog post No. 341. Click here to go to post No. 341. http://problemsoftelugus.blogspot.com/search/label/341.. That was on 6th Sept. 2014, i.e. soon after our Prime Minister took over as the PM of India, and visited Japan, with a delegation. At that time , our HOn. PM took along with him fifteen Great Business Magnets of India. Among them, Ms. Chanda Kochchar was also present. Conspicuously notable by her absence, was Ms. Arundhati Bhattacharya, the CEO of India's Largest Bank, and India's Largest Public Sector Bank. In that post, I have pointed out as under:--

उपर सूची में हम देख सकते हैं, श्रीमती चंदा कोच्चॆर जी, ऐसीऐसीऐ बैंक छेयिर पर्सन के नाम। We can see in the above list, the name of Ms. Chanda Kochhar, the Chairperson of the ICICI Bank. పై పట్టీలో మనం, ఐసీఐసీఐ ఛెయిర్ పర్సన్ శ్రీమతి చందా కొచ్చెర్ గారి పేరును చూడ వచ్చు.

OK, ICICI Bk. is the largest Private Bank in India. సరే, ఐసీఐసీఐ బ్యాంకు, భారత్ లో అతిపెద్ద ప్రైవేటు బ్యాంకు. బాగానే ఉంది. ठीक है, ऐसीऐसीऐ बैंक भारत में, सब से बडा प्रैवेट बैंक।

How about the largest bank in India and in the world (in terms of number of branches)? భారత్ లో అతి పెద్ద బ్యాంకు, మరియు శాఖల విస్తృతి లో ప్రపంచంలోనే అతి పెద్ద బ్యాంకు భారతీయ స్టేట్ బ్యాంకు సంగతి ఏమిటి? भारत में सब से बडा बैंक, और दुनिया में सब से बडा शाखा विस्तृती बैंक, भारतीय स्टेट बैंक के बात क्या है?

The Chairperson of State Bank of India is Ms. Arundhati Bhattacharya. Why her name has not been included in the delegation? భారతీయ స్టేట్ బ్యాంకు యొక్క ఛెయిర్ పర్సన్ శ్రీమతి అరుంధతీ భట్టాచార్య. ప్రతినిథి బృందం పేర్లలో ఆమె పేరును ఎందుకు జోడించలేదు? भारतीय स्टेट बैंक के छॆयिर पर्सन श्रीमति अरुंधती भट्टाचार्य है। उन की नाम प्रतिनिथि मंडल में क्यों शामिल नहीं किया गाया है?

What greatness and merit does Ms. Chanda Kochhar has, which Ms. Arundhati Bhattacharya does n't have? శ్రీమతి అరుంధతీ భట్టాచార్య గారి లో లేని గొప్పతనం , శ్రీమతి చందా కొచ్చెర్ గారిలో ఉన్నది ఏమిటి? जिस महानत और योग्यता श्रीमति अरुंधती भट्टाचार्य में नहीँ है, वह श्रीमती चंदा कोच्चरजी में है?

Is State Bank of India a Non-Performing Asset for Indian Prime Ministers? Telugu gist, తెలుగు సారం:భారతీయ ప్రధాన మంత్రులకు భారతీయ స్టేట్ బ్యాంకు వ్యర్ధమైన ఒక పనికి రాని ఆస్తి యా? भारतीय प्रधान मंत्रियों के लिये , भारतीय स्टेट ब्यांक एक गैर काम संपत्ती?

For opening one crore accounts in 15 days, State Bank of India is needed. పదహేను రోజులలో కోటి బ్యాంకు ఖాతాలను తెరవటానికి భారతీయ స్టేట్ బ్యాంకు కావాలి. पंद्रह दिन मॆं एक बैंक खाते खोलने के लिये यस.बी.ऐ होना।

For visiting Japan, SBI Chairperson is not needed. జపాన్ సందర్శించటానికి ఎస్. బీ. ఐ ఛెయిర్ పర్సన్ అవసరం లేదు. जपान संदर्शन के लिये भारतीय स्टेट बैंक के अध्यक्ष के जरुरत नहीं है।

Can PM of India explain this conundrum? ఈ కనికట్టును భారత ప్రధాన మంత్రి వివరించ గలరా? क्या भारत के प्रधान मंत्री महोदय इस पहेली की व्याख्या कर सकते हैं ?

Actually, at that time, I wanted to ask a straight question: "Does Ms. Chanda Kochchar has horns and ears, while Ms. Bhattacharya has only ears?". But, I felt that it would be impolite to use abusive language, and avoided it. Now, the Turn of the Events, is showing that she has extra-ordinary capabilities which go far beyond horns and ears.

Question: What is your grouse against Ms. Chanda Kochchar?

Ans: The essence of the above two blog posts 148 and 341 made in 2014, and 2015 is that only. That: While the (now Retired) SBI CEO Ms. Arundhati Bhattacharya is paid a pittance for her workload and responsibilities, Ms. Chanda Kochchar, who heads a relatively small Bank is paid millions of bucks. Quote from my post No. 148:--

ICICI Bank's managing director, Kochhar took Rs 5.12 crore as her take home salary in FY13. She has topped the list of the bankers getting high pays. Second in the list comes Aditya Puri with Rs 5 crore annual salary followed by Shikha Sharma, chief executive officer, Axis Bank who draws Rs 3.45 crore salary. Uday Kotak, managing director Kotak Mahindra Bank has Rs 2.19 crore as salary and Rana Kapoor, managing director, YES Bank who draws Rs 2 crore salary.

Telugu language equivalent: ఐసిఐసిఐ బ్యాంక్ ఎమ్.డి. కొచ్చర్ గారు రూ. 5.12 కోట్లు, 2013 సంవత్సరానికి ఇంటికి తీసుకువెళ్ళు జీతముగా పుచ్చుకున్నారు. బ్యాంకర్లయొక్క జీతాల పట్టికలో ప్రధమ స్థానంలో నిలబడ్డారు. ఆదిత్యపూరి (హెచడీఎఫ్ సీ బ్యాంకు) గారిది రూ. 5 కోట్లతో రెండవ స్థానం. శిఖా శర్మ యాక్సిస్ బ్యాంకు వారు మూడవ స్థానము. ఉదయ్ కోటక్ శ్రీకోటక్ మహీంద్రా బ్యాంకు గారిది రూ. 2.19 కోట్లతో నాలుగవ స్థానం. రాణా కపూర్ యస్ బ్యాంకు వారు రూ. 2 కోట్లు పుచ్చుకుంటున్నారు.

In the same blog-post 148, I wrote in Telugu langauge:

దేశంలో ఐదవ పెద్దరాష్ట్రాన్ని ముక్కలు చేసే నిర్ణయం తీసుకోటానికి అరగంట కన్నా ఎక్కువ సమయం తీసుకోలేదు. వారు ఎక్కువ గొప్ప డెసిషన్ మేకర్లా? చందా కొచ్చర్ గారు ఎక్కువ గొప్ప డెసిషన్ మేకరా? మరి వీరి జీత భత్యాలు చందా కొచ్చర్ గారి కన్నా తక్కువగా ఉన్నాయేమిటి?

English: Lok Sabha Members did not take more than half an hour, to truncate the fifth largest State in India- United Andhra Pradesh.* Are they Great Decision Makers? Or Ms. Chanda Kochchar a Great Decision Maker? Then, why their salaries are less than Ms. Chanda Kochchar?

ఈక్రింది వారంతా చందా కొచ్చర్ గారి కన్నా తక్కువ నైపుణ్యాలు కలవారా? తక్కువ బరువు బాధ్యతలు మోసేవారా? Do the following persons, who get less than Ms. Chanda Kochchar have lesser skills? Or do they should lesser responsibilities? ౧. ఉపరాష్ట్రపతి 1. Vice President. ౨. సుప్రీంకోర్టు ప్రధాన న్యాయమూర్తి. 2. C.J.I., and SC and HC Judges. ౩. లోక్ సభ స్పీకర్. 3. Lok Sabha Speaker. ౪. త్రివిధ దళాధిపతులు. 4. Three Defence Chiefs ౫. ఇస్రో , డీఆర్ డీవో, భారత అణుశక్తి సంస్థ మొ|| అధిపతులు, శాస్త్రవేత్తలు 5. Heads and Scientists of ISRO, DRDO, BARC etc. ౬. రిజర్వు బ్యాంక్ గవర్నర్. 6. RBI Governor. ౭. స్టేట్ బ్యాంక్ ఛెయిర్ పర్సన్ తో సహా షుమారు ౩౦ దాకా ఉన్న ప్రభుత్వరంగ బ్యాంకుల సీఎండీలు. SBI CEO and CEOs of nearly 30 large PS Banks. ౮. భారత ప్రభుత్వ కార్యదర్శులు. 8. Secretaries of Governments. ౯. సీబిఐ అధిపతి తో సహా డీజీపీలు మొ|| పోలీసు అధికారులు. 9. DGPs, CBI Heads, etc. Police Officials. ౧౦. విదేశాల్లో భారత రాయబారులు, హైకమీషనర్లు. (ఇంకా జోడించ వలసినది, తిరగవ్రాయవలసినది ఉన్నది.) 11. Ambassadors, High Commissioners in Indian Missions abroad.

* Those decisions of Lok Sabha and Rajya Sabha have proven to be hasty and defective, as can be seen from the current Agitation which is going on in the State of Residual Andhra Pradesh. Reasons: BJP Leaders forced Congress Prime Minister Mr. Manmohan Singh to make impossible promises, or promises which lead to similar demands from Other States. Funniest thing is, Hon. Narendra Modi, the Current PM, committed himself to those promises at Tirupati Meeting.

What is the 2017 Salary position of Ms. Chanda Kochchar?

Source: Click here to go to https://economictimes.indiatimes.com/news/company/corporate-trends/guess-how-much-icici-banks-chanda-kochhar-made-this-year/total-salary-break-up/slideshow/58855422.cms

Kochhar's basic salary increased to Rs 2.66 crore in the fiscal ended March 2017 from Rs 2.31 crore in the year earlier, while the bank’s senior most executive director NS Kannan's salary increased to Rs 1.76 crore from Rs 1.53 crore.

Kochhar's total salary including a performance bonus, allowances and perquisites, provident fund, superannuation fund and gratuity fund increased 63% to Rs 7.83 crore in the fiscal ended April 2017 from Rs 4.76 crore mainly because of a Rs 2.20 crore bonus which was non-existent last year and also as allowances and perquisites increased 47% versus fiscal 2016.

ybrao-a-donkey's personal views which are not intended to be imposed on others:

Even after getting so much, why Ms. Chanda Kochchar has brought herself to a critical situation, wherein she has to face a "Look out Notice" from CBI and ED? Is she not satisfied, with what she is getting?

It is also important to note that there is sharp disparity between the S&A of the CEO, and her subordinates, vis-a-vis the responsibilities every one shoulders.

Wonder of the wonders, is: Even after the financial irregularities in respect of the Credit facilities extended to Videocon, have come out in the Open, the Board of Directors of ICICI Bank is still supporting their CEO facing the allegations. Though it may not be prudent for them to panic, the Action of the Bank's Board supporting the CEO gives an impression that at their instance only, their CEO has committed the Irregularities. It gives an impression for "nodding her head for everything" , Ms. Kochchar is getting all her Pay Rises and Bonuses. So much for the Efficiency of Private Sector Banks and their CEOs!

According to News Reports, the Credit of about Rs. 30 billion extended by ICICI Bank to Videocon, is only 10% of the total amounts lent by Consortium of many Banks. Hence a question will arise: Which are the other Banks? Who are their CEOs? Did they also get any quid quo pro? CBI and ED have to investigate.

This post is incomplete and raw. To continue adding / deleting / modifying.

975 (Part 1/10) Reserve Bank of India alone cannot help Banks to recover their NPAs (Non Performing Assets)

According to news reports, on 5th May 2017, President Pranab Mukherjee approved an ordinance to amend the Banking Regulation Act, 1949 to give more powers to the Reserve Bank of India to take action against defaulters to speed up recovery of Non Performing Assets (Bad Loans) of Indian Banks. The Ordinance is reported to give powers to RBI to 1) issue directions to any bank to initiate insolvency resolution process in case of default. 2) Issue directions to the banking companies for resolution of stressed assets 3) Specify one or more authority or committee that will advise banks on how to resolve their stressed assets.

RELATED LINKS

Click here to go to https://scroll.in/article/836743/with-more-power-to-rbi-to-tackle-non-performing-assets-could-indias-big-bad-loan-problem-end-soon

Click here to go to https://www.ft.com/content/62cba48c-3195-11e7-9555-23ef563ecf9a (Financial Times)

yb-a-donkey's views which are not intended to be imposed on others

This is a 1000 page subject. Cannot be covered in one blog post.

1. Government of India and the Reserve Bank of India, have done too little, and too late. Government may want to show that they are doing something drastic, to ward off media, public and Parliamentary criticism that it is soft on Corporate Borrowers, and industrialists while small and medium industrial, personal and agricultural borrowers are harassed for recovery of palty amounts. There is much truth in this criticism.

If the Government really takes some radical, effective measures, Large Industrial and Commercial Borrowers are not going to remain silent. They will use their influence-s and pull the strings on their puppet MPs, to change / moderate the Government's behavior.

If one or two industrialists are picked up at a time, probably others will remain silent. But if the whip is flaunted on all the large Borrowers on a war footing, they may go even to the extent of toppling the Government by purchasing MPs, or they may try to split the Ruling Party, by creating hopes in latent aspirants for power.

Question: How the step of "Initiating Insolvency Resolution Process" is not going to solve the problem.

Ans: Even before the Ordinance, Bank Boards, Bank Senior Managers have powers to initiate Insolvency Resolution Process. In case of insolvency of Companies, the Companies Act requires Creditors to apply to State High Courts for Liquidating the Borrower Companies, and if High Courts are satisfied, they will appoint an Official Liquidator to execute the Liquidation Proceeds. The Official Liquidator has to sell all the assets of the Borrower Company, collect all dues receivable by the Companies, and after that pay off the Creditors in the Priority Order Stipulated by Law. The whole procedure and process takes several years.

The Ordinance does not appear to take away the powers of High Courts, or superimpose the new powers of Banks, on the powers of the High Courts. The Ordinance just empowers RBI to issue directions to Banks to initiate Insolvency Resolution Process. It may probably mean that, RBI can give directions to Banks to apply to High Courts for Liquidation of Borrower Companies. Even before the Ordinance, to issue directions to Banks, as may be necessary from time to time. There is no 'open' information that Banks were hitherto disregarding the instructions of the RBI.

In case of most Corporate Loans Banks have full/part security, which they can take possession and sell directly under SARFAESI Act 2002.(Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002)

Before SARFAESI Act 2002 came into force, Banks were dependent on Courts, for selling the assets mortgaged / hypothecated to them. Now, there is no such need.

Approaching courts for Insolvency / Liquidation Proceedings will be useful only when Banks are Unsecured Creditors, or where the mortgaged / hypothecated securities are extremely inadequate, and bulk of the loan will become unsecured.

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

967 Musings on Miscellany

Do Private Sector Banks in India have horns? It is understandable if Private Sector Companies embrace and encourage Private Sector Banks. But, the same thing cannot be said about Public Sector (Govt. owned) Companies embracing and encouraging Public Sector Banks. Public Sector Companies and Public Sector Banks are supposed to have affinities and synergies. Both the PUblic Sector Companies and the Public Sector Banks can survive only if they stand together and support one another. This Government Insurance Company "New India Assurance Company, Mumbai", largest among the five Govt. Insurance Companies in India, as on date, seems to be allergic to Public Sector Banks. Okay, some PUblic Sector Banks may be villains, lackadaisical and lethargic, and above all UNBUSINESS-LIKE. There are nearly 25 Public Sector Banks in India, with wide demographic and geographical spread. It should not have ordinarily been difficult for the New India Assurance to pick up five Public Sector Banks to handle its IPO (Initial PUblic Offer). Or at least, it could have had a mix of 3:2 i.e. 3 public sector banks and, two private sector banks, or vice versa. Strangely, it selected all the five fellows-- Private Sector Banks.

RELATED LINKS

Click here to go to http://timesofindia.indiatimes.com/business/india-business/new-india-appoints-five-bankers-for-ipo/articleshow/58466718.cms

ybrao-a-donkey's views not intended to be imposed on others

If Public Sector Banks are not offering New India Assurance, attractive and competitive terms/tariffs, New India Assurance, could have then reported the matter to its Holding Company, and the Government of India, seeking competitive and reasonable terms. Public Sector entities both Banks, and other Corporations, cannot be 100% business-like and socially irresponsible like their Private counter-parts. They have a dual burden of working profitably, and also responsibly. Acting in harmony and cohesion with one another should be an uncompromisable strategy of all Public Sector Units and Undertakings, in whichever industry/service/business they may be engaged. Supervising organisations like Government of India's different Ministries, Reserve Bank of India, Bureau of Public Enterprises, etc. have to continuously monitor this area,of mutual support among public sector units.

Quotes from the related links

"...Responding to speculation of merger of government-owned non-life companies, Srinivasan said that there was no concrete move and there has been only unconfirmed news reports. "As far as we are concerned there is no such thing and we are going ahead (with the public issue) in our present structure," said Srinivasan. ..."

yb-donkey: There seems to be some communication gap between the Govt. of India, and the New India Assurance. Govt. should be transparent to the Board of New India Assurance, about its future, i.e., about whether there are going to be some mergers, if so, likely with whom, on what terms etc. etc. Even if the Govt. of India is reticent, the New India Assurance's Chairman ought to have written an Official letter to the appropriate Govt. Ministry, seeking some information about the Company's future prospects/fate. Secretiveness can lead to the 'Controller' and the 'Controlled' working unintentionally in opposite directions. This will not be a good management practice.

Pakistan's inhuman acts of mutilating bodies of Indian Soldiers

Battles, wars, squabbles and squirmishes take place between countries, and as a part of it, sometimes, unfortunately some soldiers may die on both sides. But mutilating the bodies of slain soldiers is an extremely reprehensible practice which all Nations have to condemn. Pakisthan seems to be ruled by ISIS and Taliban, rather than by a democratically elected Government. Besides, Pakistani Generals and Military Officials seem to exercise undue authority and dominance on their Civil counterparts. In addition, Pakistani Army seems to be infested with from ISIS and Taliban militants, who do not have any scruples about military traditions. Religious Fanatism is blind to everything sane. We should not expect any sort of civil behaviors in such situations.

India should go for more drones, robots, missiles and unmanned aircraft like Lakshya

India cannot continuously afford to sacrifice the noble lives of its brave soldiers. there will also be no use of Prime Minister and Defence Minister, repeatedly expressing dismay and taking lofty pledges and vows. It must find out ways of unmanned, less-manned, attacking and defensive methods using latest equipment, vehicles, and systems.

Posting of Mr. Anil Kumar Singhal as the Executive Officer of TTD (Tirumala Tirupati Devasthanam), the largest and the Richest Temple in India

TTD is an All India Temple. Pilgrims visit not only from all parts of India, but also from other parts of the World. It will, therefore, be natural to expect the E.O.of the Temple to know the International Link language English, India's National and Link Language Hindi. Mr. Anil Kumar Singhal fulfills these two needs.

The TTD Shri Venkateswara Temple, situated in South India, is surrounded by the cultures and traditions of the four South Indian languages Telugu, Kannada, Telugu, and Tamil. Among these four languages, Telugu and Kannada have some affinities of vocabulary, grammar, script, and many other practices. Tamil and Malayalam have a similar relationship. It will, therefore, be apt to expect that Mr.Singhal will try to learn at least two of the four languages, one each from Tamil/Malayalam, and Telugu/Kannada. TTD follows Vaikhanasa Agama (scripture of worship methods) method of worship. Mr. Singhal will have to study these AAgamas and try to establish a close working rapport with temple's priests, and their working modes and moods. Managing a Temple, will be totally different from managing other Government Departments and Offices, in administering which it will be sufficient to know law, Management science, and some behavioral methods.

Mr. Singhal to apply his mind to the problem of VIPs, contractors and business persons intruding into the Temple's Systems, claiming special treatment. This is leading to grave injustice to the ordinary pilgrims.

Enriching Contractors or depriving contractors from their due profits cannot be a duty or pastime of a Temple Management. Temple Managements cannot become slaves of contractors, particularly those having political patronage, for earning kickbacks, or promotions.

TTD also seems to have an insatiable urge to entertain donations of 'gold' and 'precious-stones' from its devotees. Accumulation of gold will only divert the attention of the Temple Managements, from their main object of maintaining a 'divine' and 'serine' environment in Temples. Security will become another problem. Employees and Priests themselves, however honest they by nature are, may be tempted to steal gold/precious stones. Cash/gold/precious-stone donations given by persons and Corporates who earn them through corrupt, dubious, illegal means and methods, as Commission /share of booty to God-- the Temple should refuse to accept such tainted donations.

Nations and Societies have to learn from history. We should not forget that Ghazni Mohd. from Turkey invaded India 17 times from 1000 CE to 1017 CE, almost every year, to rob the Somnath Temple at Gujarat. Mohd. Ghori to robbed hundreds of maunds (Maund=100 Troy Pounds) gold and precious stones after vanquishing Prithviraj Chauhan in 1171. Even today, temples and their deities are dug up by unscrupulous persons in search of treasures hidden beneath the idols and phallus-es.

It is a banal cliche / jargon in India to say that 'All are Equal before God'. Along with other Temples in India, TTD's Venkateswara Temple also proves that 'some people are more equal than others'. I believe that in India, even on cremation grounds/ grave yards, we cannot find equality though the Great Medieval Lyricist Annamacharya sang:--

తందనాన అహి, తందనాన పురె tandanAna ahi, tandanAna pure
తందనాన భళా, తందనాన || tandanAna bhaLA, tandanAna

బ్రహ్మ మొకటే, పర brahmamokaTE, para
బ్రహ్మ మొకటే, పర brahmamokaTE, para
బ్రహ్మ మొకటే || brahma mokaTE.

కందువగు హీనాధికము లిందు లేవు kanduvagu hInAdhikamu lindu lEvu
అందరికి శ్రీహరే అంతరాత్మ | andariki SrIharE antarAtma
ఇందులో జంతుకుల మంతా ఒకటే indulO jantu kula mantA OkaTE
అందరికీ శ్రీహరే అంతరాత్మ || andarikI SRIharE antarAtma

నిండార రాజు నిద్రించు నిద్రయునొకటే ninDAra rAju nidrincu nidrayu okaTE
అండనే బంటు నిద్ర - అదియు నొకటే | anDanE banTu nidra - adiyu okaTE
మెండైన బ్రాహ్మణుడు మెట్టు భూమియొకటే menDaina brAhmaNuDu meTTu bhUmi okaTE
చండాలుడుండేటి సరిభూమి యొకటే || canDAluDu unDETi sari bhUmi okaTE

అనుగు దేవతలకును అల కామ సుఖ మొకటే anugu dEvatalaku kAma sukhamu okaTE
ఘన కీట పశువులకు కామ సుఖ మొకటే | ghana kITa paSuvulaku kAma sukhamu okaTE
దిన మహోరాత్రములు - తెగి ధనాఢ్యున కొకటే dinam ahOrAtramulu - tegi dhnADhyunak okaTE
వొనర నిరుపేదకును ఒక్కటే అవియు || onara nirupEdakunu okaTE aviyu.

కొరలి శిష్టాన్నములు తిను నాక లొకటే korali SishTAnnamulu tinu Akali okaTE
తిరుగు దుష్టాన్నములు తిను నాక లొకటే | tirugu dushTAnnamulu tinu Akali okaTE
పరగ దుర్గంధములపై వాయు వొకటే paraga durgamdhamulapai vAyu okaTE
వరస పరిమళముపై వాయు వొకటే || varasa parimaLamu pai vAyu okaTE

కడగి ఏనుగు మీద కాయు ఎండొకటే kaDagi yEnugu mida kAyu EnDa okaTE
పుడమి శునకము మీద బొలయు నెండొకటే | puDami Sunakamu mIda polayu enDa okaTe
కడు పుణ్యులను - పాప కర్ములను సరి గావ kaDu puNyulanu - pApa karmulanu sari kAva
జడియు శ్రీ వేంకటేశ్వరు నామ మొకటే || jaDiyu Sri Venkateswaru nAma mokaTE

Approx. Engl. gist for the benefit of Readers who do not know Telugu language

తందనాన అహి, తందనాన పురె tandanAna ahi, tandanAna pure. This is chorus, in group singing.
తందనాన భళా, తందనాన || tandanAna bhaLA, tandanAna. This is chorus, in group singing. Approx. Engl: you are right. It is correct.

బ్రహ్మ మొకటే, పర brahmamokaTE, para. Supreme Spirit is one. (Telugu, Sanskrit word para= Supreme. brahmam= Spirit which is infinite. It is formless=nirguNam).
బ్రహ్మ మొకటే, పర brahmamokaTE, para. Supreme Spirit is one.
బ్రహ్మ మొకటే || brahma mokaTE. Supreme Spirit is one.

కందువగు హీనాధికము లిందు లేవు kanduvagu hInAdhikamu lindu lEvu. There are no distinctions of 'abominable' and 'venerable'.
అందరికి శ్రీహరే అంతరాత్మ | andariki SrIharE antarAtma. For all Lord is the Inner-Soul.
ఇందులో జంతుకుల మంతా ఒకటే indulO jantu kula mantA OkaTE. In this all the fauna is one.
అందరికీ శ్రీహరే అంతరాత్మ || andarikI SRIharE antarAtma. For all, Lord is the Supreme Soul.

నిండార రాజు నిద్రించు నిద్రయునొకటే ninDAra rAju nidrincu nidrayu okaTE. Sleep of a King is same.
అండనే బంటు నిద్ర - అదియు నొకటే | anDanE banTu nidra - adiyu okaTE. Sleep of a servant is same.
మెండైన బ్రాహ్మణుడు మెట్టు భూమియొకటే menDaina brAhmaNuDu meTTu bhUmi okaTE. Land on which a Priest (Brahmin) resides is same.
చండాలుడుండేటి సరిభూమి యొకటే || canDAluDu unDETi sari bhUmi okaTE. Land on which an outcast lives is same.

అనుగు దేవతలకును అల కామ సుఖ మొకటే anugu dEvatalaku kAma sukhamu okaTE. The sexual happiness of Gods(Goddesses) is same.
ఘన కీట పశువులకు కామ సుఖ మొకటే | ghana kITa paSuvulaku kAma sukhamu okaTE. The sexual happiness o the insects and cattle is same.
దిన మహోరాత్రములు - తెగి ధనాఢ్యున కొకటే dinam ahOrAtramulu - tegi dhnADhyunak okaTE. Days and nights of a Rich person is same.
వొనర నిరుపేదకును ఒక్కటే అవియు || onara nirupEdakunu okaTE aviyu. They are same even to a very-poor person.

కొరలి శిష్టాన్నములు తిను నాక లొకటే korali SishTAnnamulu tinu Akali okaTE. The hunger which nourishes on succulent foods is same.
తిరుగు దుష్టాన్నములు తిను నాక లొకటే | tirugu dushTAnnamulu tinu Akali okaTE. The hunger which eats remnants and stale foods, is same.
పరగ దుర్గంధములపై వాయు వొకటే paraga durgamdhamulapai vAyu okaTE. The wind which blows on obnoxious-odious smells is same.
వరస పరిమళముపై వాయు వొకటే || varasa parimaLamu pai vAyu okaTE. The wind which blows on sweet perfumes and scents is same.

కడగి ఏనుగు మీద కాయు ఎండొకటే kaDagi yEnugu mida kAyu EnDa okaTE. The sunlight which falls on an elephant is same.
పుడమి శునకము మీద బొలయు నెండొకటే | puDami Sunakamu mIda polayu enDa okaTe. The sunlight which falls on a stray-dog is same.
కడు పుణ్యులను - పాప కర్ములను సరి గావ kaDu puNyulanu - pApa karmulanu sari kAva. To save the great virtuous, and the sinners
జడియు శ్రీ వేంకటేశ్వరు నామ మొకటే || jaDiyu Sri Venkateswaru nAma mokaTE, the name of the Supreme God is same.

Though the poet has used the name 'SrI Hari' as the name of the Supreme Godhead/ Supreme Soul (para brahmam), any name, including Christian, Islamic, ... ... names could be substituted here. We can give a benefit of doubt to the Great Poet Annamacharya that he did not intend only one ABC God, as the one who treats the Virtuous and Sinners equally. A person of such deep intellectual thinking, cannot NORMALLY / ORDINARILY view from the narrow walls of a particular religion, caste, region, language, inheritance, wealth and thousand other creators of inequalities in this world. This type of literature of Great Equanimity and Balance of Mind, we do not ordinarily find in European languages.

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

924 Why should India give undue value to the predictions made by Fitch Rating?

India is a Sovereign Country. It can conduct, manage and organise its own Economy in the best manner, which it deems fit, keeping in view the welfare of its People. Whoever in the Government of India has first started this practice of approaching Credit Rating Agencies such as Moody's, Standard and Poor, Fitch Ratings for getting the country rated by them, didn't/do not seem to have taken into consideration that this country of ours is a Sovereign Nation. The Rulers of India of those days, might have, in their haste and hurry, and idiotic craze to mobilise foreign investments, might have succumbed to the temptation of approaching International Credit Rating Agencies such as Standard and Poor, Moody's, Fitch Ratings etc. India may be, unnecessarily, paying them some fees every year, towards their services. India, may be lobbying using services of some Consultant Lobbyists with the Rating Agencies for getting improved ratings. But, this type of this do not befit a Sovereign Country, which claims to be the 6th Largest Economy in the world, and wants to become the World's Largest Economy in near future, at a phenomenal speed.

Context. Observations made by Fitch Ratings

Fitch Rating is reported to have commented on the capabilities of Indian Public Sector Banks:-

Fitch Ratings-Mumbai/Singapore-08 March 2017: Some Indian banks remain at risk of skipping coupon payments on capital instruments over the next couple of years; despite measures by the Reserve Bank of India (RBI) to ease pressures, and injections of government capital into state banks, says Fitch Ratings. Mid-sized state banks are the most at risk of breaching capital triggers.

Distributable reserves at small- to mid-sized state banks were down by one third in 9M17 compared with financial year 2015 (FY15, to March 2015), reflecting persistent losses and weak internal capital generation. Five state-owned banks suffered losses that were equivalent to more than 30% of distributable reserves in 9M17 alone. The RBI's recent decision to allow banks to make additional Tier 1 (AT1) coupon payments from statutory reserves may have helped mitigate short-term coupon-deferral risks, but state banks' reserves are likely to continue falling.

The RBI has made several regulatory adjustments in the last few years to avoid potential damage to sentiment in the domestic market for capital instruments. These changes have been applied to the sector as a whole and are not unique to India, but their timing suggests the RBI has felt pressure to provide headroom to state banks.

Some banks are also at risk of missing coupon payments on capital instruments as a result of breaching minimum capital requirements. Fitch's analysis indicates that the total capital adequacy ratio (CAR) of 12 banks was at or below the 11.5% minimum that will be a prerequisite for payment of coupons on both legacy and Basel III AT1 capital instruments by FYE19. There were also 11 banks with CET1 ratios at or below the 8% minimum that will be required to make coupon payments on AT1 instruments by FYE19.

We estimate that banks require around USD 90 billion in new capital by FYE19 to meet Basel III standards - state banks account for around 80% of that. State banks are constrained in raising new equity due to heavy discounts on valuations while limited market depth remains a hurdle to issuing capital instruments domestically. Banks which are capable of tapping overseas markets have been reluctant to do so due to pricing concerns. This leaves state banks largely reliant on the government for recapitalisation. The USD10.4bn that the government has earmarked for capital injections into state banks is unlikely to be enough to support balance-sheet growth.

yb-donkey's personal views, not imposed on others. Criticism is welcome.

ARE ALL THE EUROPEAN BANKS AND AMERICAN BANKS, PARAGONS OF VIRTUE?

These International Credit Rating Agencies rate European and American Banks quite favorably, overlooking their exposures and short-comings. Many Euro and American Banks fudge their Balance Sheets. Yet, these rating agencies consider the Western Banks as paragons of virtue. If they were really paragons of virtue, and exemplary Bankers, how could the 2008 Wall Street Crises take place? How could the 2008 Recession threaten the whole world? Even today, American Banks have not rectified their sub-prime lendings, either through recoveries, or by strengthening their Credit Disbursement and Supervision Methods.

It is my humble personal view that India should shed this ugly lust to get foreign investments from abroad, by getting good ratings from International Credit Rating Agencies. India should not pay any fees to these rating agencies. India should not lobby for good ratings. If no foreign individual / institutional investors do not want to invest in India, because ratings are not good, India can leave their decisions to their own wisdom(s).

It is my humble personal view that Indian Public Sector Banks need not abide even by the Basle (Basel) Capital Requirement Norms. Reason: People of India, trust Indian Public Sector Banks greatly, whether they have adequate Capital or not. The accumulation of Non Performing Assets of Indian Public Sector Banks is mainly owing to failure of Legal Enforcement Apparatus for issuance of decrees, and sale of Stressed Assets. Indian Banks should take the task of selling Stressed Assets on a war footing. Government of India should take steps to plug the loop holes in the SARFAESI ACT 2002 ( Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ) which empowers banks to auction residential and commercial properties to recover loans. Public Sector Banks should be permitted, and they should not hesitate, to sell assets even at BELOW RESERVE PRICE. Once Indian Public Sector Banks start selling high value assets both primary and collateral securities even below Reserve Prices, willful defaulters get shivering feets, and they will recycle their diverted stashed funds, to save their stressed assets.

This is a thousand page subject. Some other day, some other time.

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

890 What may be the estimated extent of ACCUMULATED FROM 1947 INDEPENDENCE, off-balance sheet bad debts of Indian Banks?

What may be the estimated extent of ACCUMULATED FROM 1947 INDEPENDENCE, off-balance sheet bad debts of Indian Banks? In calculating this, we have to include both the off-balance sheet bad debts of Indian Private Banks and the off-balance sheet bad debts of Indian Public Sector Banks. Reason: Even Private Banks handle public money. When Private Banks become sick, and suffer from illiquidity and insolvency, Reserve Bank of India, has to come to their rescue, notwithstanding the CRR funds held by Banks in Current Accounts with RBI, and the SLR Funds held by Banks in the form of permitted Investments. Even when the illiquidity and insolvency of Private Banks go beyond the resources available from CRR & SLR, RBI has to save them, by providing funds to them, through whatever methods they may be called, such as "Ways and Means" Advances, Overdrafts, Repos, etc. There is one big difference between "On Balance Sheet Bad and Doubtful Debts" and "Off Balance Sheet Bad Debts". In India, Bank Balance sheets never show openly their live Bad and Doubtful Debts. They only show net amount of debts receivable by them, after deducting provisions for Bad and Doubtful Debts made by them from their profits, to the satisfaction of their Statutory Auditors. Hence, the true bad and doubtful debts of any bank, will be an enigma for outsiders, because it is secret information. If the Statutory Auditors (Chartered Accountants etc. appointed as per law) discharge their duties meticulously and sincerely, and the other Government / RBI Agencies which inspect the assets of Banks attend to their tasks alertly, ordinarily, Indians and the World dealing with those Banks need not worry about Indian Banks. Hence, we can say that there will be no need to worry about On-balance-sheet (secret, but scrutinised by auditors and inspectors), because provisions are made to cover them.

IMPORTANT FEATURE(s) OF THE OFF-BALANCE-SHEET BAD DEBTS OF INDIAN BANKS (BOTH PRIVATE SECTOR AND PUBLIC SECTOR)

For removing these items from their balance sheets, in any particular financial year, banks debit their Profit and Loss Accounts, and close the Loan Accounts of Parties. For that year, profit is shown less. No doubt, this definitely a prudent method.

But, the problem with this method is: Depositors, shareholders, employees, other stakeholders of Banks may never know about the existence of these sleeping loans which cannot be abandoned, simply because Profit and Loss Accounts were debited and removed from the balance sheets. These are like skeletons in cupboards, in the backyard. The borrowers involved (defaulters) also may happily forget about them. Wherever there are court cases for recovery of these debts, the suits will drag on for several years. Not only that, these suits-debts have to undergo three stages for actual recoveries, unless they are covered by a Special Act known as SARFAESI Act, 2002.

MONEY DEBTS WHERE THERE IS NO PRIMARY SECURITY (stocks etc. which are lost with afflux of time), or COLLATERAL SECURITY (lands, buildings etc.)

After obtaining Money Decrees, Banks will have to file Execution Petitions for Enforcement of Money Decrees, Banks must also show assets of the borrowers to be attached, giving details such as House Nos., Survey Nos., extent, boundaries, etc. The Court Ameen or the Official Receivers/Assignees appointed by Courts will not go and search for the assets. Then, auction dates are to be fixed. Parties are to be brought to purchase them above the Reserve Price. For this reason only, in respect of very low value debts, debts to be recovered from small and marginal farmers, poverty-stricken people, Banks abandon such debts, as it will not worthwhile to pursue the legal process.

To continue. सशेष. ఇంకా ఉంది.