The ‘Game’ and Humbling of the Tycoons
By: Amit Bhushan Date: 21st April 2018
The reforms in India’s Banking system seems to have caught the attention of the ‘phoren news media’, however its coverage in the domestic News Media seems to be less than adequate. Whatever coverage is there in the local News media might as well be about the lack of toilets in the bank branches rather than what’s being talked about. The ‘Game’ was the first to raise this vociferously and the Netas were only reluctant followers till the time its potential for political tumult was realized. However the article in the phoren media with its rather fancy reputation, seems quite benign and rather congratulatory for the Netas in government probably on account of the ‘visit’ of the Netas. It fails to note the structural changes that some industry like the telecom sector has undergone, though not entirely on account of bank reforms alone, however such changes would have been unforeseen if the vigil on the banks had been as lax as earlier. Then there are structural changes that some large business groups seem to be undergoing involving deleveraging. Even now quite a lot of billowing of smoke over the affairs is seen, both in business and politics as the Netas want the businesses by ‘their side’, and this seems to be much needed rather than the voters which are rather cheap.
It is interesting that neither the ‘rational part nor the ‘nationalistic’ part of the domestic News media would try to explore the story, which seems to have caught fancy of the ‘phoren media’ who would go ahead to commend the PM for the same. The political class may however want to point out several businesses who may be having it a lot easier, while some other undergo the stress of the bankruptcy code. Of course we have businesses still holding on to the ‘unpaid assets’ while their near and dear ones continuing to splurge both within as well as abroad. There seems little attempt to explore the changes being made in the banking credit appraisal processes and credit management practices on account of the bankruptcy code as little information seems to be pouring in on this account. Unless reforms are carried out in the credit selection as well as management to ensure better a portfolio of assets, it might be a bit early for the congratulations to pour in. Then of course there is near total silence in the article about the banking auditors and the lackadaisical approach of reporting on the process breaches for such credits which is/was rampant. The readers are probably expected to presume that no reporting means an action is unlikely.
To be cont….