The ‘Game’ and Humbling of the Tycoons

LekshmiGPilllai · May 22, 2025

This article raises some very important points about the banking reforms in India and how the narrative differs between foreign and domestic media. It’s notable that while foreign media seems to commend the government for tackling issues like non-performing assets and enforcing the bankruptcy code, local media focuses more on superficial issues rather than the deeper structural reforms.

The piece also highlights the uneven impact of reforms — some large businesses are deleveraging and facing pressure, while others seemingly benefit from lenient treatment and continue their extravagance. The lack of transparency about changes in credit appraisal and management is worrying, especially given the history of lax auditing and reporting in the banking sector.

I agree that while reforms are a step forward, much more needs to be done to improve credit discipline and accountability before we can confidently celebrate succe
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Priyani Gupta · May 22, 2025

The article “The ‘Game’ and Humbling of the Tycoons” by Amit Bhushan offers a thought-provoking critique of the ongoing reforms in India’s banking sector, highlighting both the underappreciated significance of these reforms within domestic media and the broader political and economic dynamics at play. It raises essential points about the limited and often superficial coverage by Indian news media contrasted with the more engaged—though somewhat congratulatory—stance of foreign media. This discussion invites us to look beyond the surface and reflect on the structural transformations, political interests, and gaps in accountability that the reforms expose.

Firstly, the article rightly points out the irony in the domestic media’s lukewarm coverage of such a consequential issue. While foreign media recognize the magnitude of India’s banking reforms and their potential impact on business and governance, domestic outlets appear distracted by trivialities such as inadequate bank branch facilities. This divergence is telling; it suggests a lack of critical engagement domestically, possibly due to political pressures or a reluctance to disrupt prevailing narratives. It is indeed essential for the Indian media to evolve into a more rational and nationalistic force that scrutinizes reforms with depth and impartiality, rather than settling for superficial reporting.

The article also touches on the important point that these reforms are not just isolated banking policies but catalysts for structural change across industries. The telecom sector, for example, has seen significant shifts partly because of stricter banking vigilance and credit management. This systemic impact underlines the interconnectivity of financial health and business sustainability. Moreover, the ongoing deleveraging of large business groups signals a tough but necessary reckoning for many tycoons long accustomed to easy credit and political patronage.

Bhushan’s commentary about the political interplay is particularly insightful. The observation that politicians prefer to keep big businesses “by their side” rather than focusing on voters reflects a pragmatic, if cynical, reading of political priorities. This underscores the delicate balance between fostering business growth and ensuring accountability—one that must be managed with transparency and integrity to avoid favoritism and corruption.

The article’s criticism of the lack of transparency around changes in credit appraisal and management processes is a crucial concern. For reforms to be truly effective, they must permeate all levels of banking operations, including rigorous credit evaluation and ongoing monitoring. Without such systemic strengthening, the risk of accumulating non-performing assets remains high, undermining the entire reform agenda. This point highlights the need for more information and discourse around internal banking reforms, something that has been conspicuously absent from mainstream conversations.

Lastly, the mention of the silence on the role of banking auditors and their lackadaisical approach to reporting breaches is a vital call for enhanced accountability mechanisms. Auditors serve as critical watchdogs in the financial ecosystem, and any complacency on their part can exacerbate financial mismanagement and losses to the public exchequer. Addressing this gap is essential for building trust in the banking system and ensuring that reforms are not just cosmetic but substantive.

In summary, Amit Bhushan’s article is an important reminder that India’s banking reforms, while ambitious, require sustained scrutiny, transparency, and comprehensive structural changes to fulfill their potential. The muted domestic media response and the political-business nexus present significant challenges, but also opportunities for a more mature and responsible financial ecosystem. For the reforms to succeed and for the ‘tycoons’ to be genuinely humbled, the process must be inclusive of better credit governance, honest auditing, and fearless media oversight.

Dhruv Bindhani · Jun 18, 2025

amit2011 said:
Amit Bhushan's 2018 article, "The ‘Game’ and Humbling of the Tycoons," serves as a sharp and critical commentary on India's banking sector reforms, particularly the implementation of the bankruptcy code. The writer, with a discerning eye, exposes the stark contrast between the narrative often presented by foreign media and the more complex, and often problematic, realities on the ground in India. Bhushan's piece is a powerful call for deeper introspection and more genuine reform, demonstrating a keen understanding of both economic policy and political dynamics.

The Discrepancy in Narratives: Foreign vs. Domestic
Bhushan immediately draws attention to a significant disconnect: the "fancy reputation" and congratulatory tone of "phoren news media" regarding India's banking reforms, contrasted with the "less than adequate" and often superficial coverage in the domestic press. This observation is a crucial starting point, suggesting that the full, unvarnished story of India's banking sector health is not being widely disseminated internally. The writer implies a deliberate oversight, perhaps influenced by political considerations, highlighting how "Netas want the businesses by ‘their side’," prioritizing this over the interests of voters. This initial critique sets the stage for a broader examination of accountability and transparency.

Structural Shifts, Unaddressed Gaps
While acknowledging that some industries, like telecom, have undergone "structural changes" partly due to banking reforms, Bhushan is careful to qualify this success. He astutely notes that such changes would have been "unforeseen if the vigil on the banks had been as lax as earlier." This cautious optimism is quickly tempered by his central concern: the persistent lack of information and true reform in credit appraisal and management. The phrase "quite a lot of billowing of smoke over the affairs is seen" perfectly captures the opacity that still surrounds the deleveraging processes of large business groups. This suggests that while some superficial changes may be evident, the fundamental issues of bad loans and corporate defaults are far from resolved.

The Unspoken Truths: Defaulters, Auditors, and Denied Opportunities
Bhushan’s most incisive critiques target the areas of glaring silence and systemic failure. He lambasts the fact that while some businesses face the rigor of the bankruptcy code, others appear to have an "easier" time, with their "unpaid assets" shielded and their associates splurging abroad. The withholding of crucial data on corporate defaulters, past bailouts, write-offs, and interest waivers under the guise of "privacy of banking data" is powerfully challenged. This lack of transparency, he argues, prevents genuine public understanding and accountability, contrasting sharply with the scrutiny applied to agricultural loan waivers.

Furthermore, the author delivers a damning indictment of the "banking auditors and the lackadaisical approach of reporting on the process breaches." This "near total silence" on auditor complicity is a critical, often overlooked, aspect of banking crises. By hinting that "readers are probably expected to presume that no reporting means an action is unlikely," Bhushan points to a systemic failure in financial oversight.

In conclusion, Amit Bhushan's article is a courageous and essential piece of financial journalism. It masterfully pulls back the curtain on the incomplete narrative of India's banking reforms, challenging both domestic media and political complacency. His sharp insights into the protection of defaulters and the failure to reform credit practices underscore the urgent need for a more robust, transparent, and equitable banking system in India, truly allowing entrepreneurship to flourish.

Subiksha Anand · Jun 21, 2025

amit2011 said:
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….

Your article throws a much-needed spotlight on an issue that deserves far more public scrutiny than it currently receives—India’s banking reforms and the oddly muted domestic response to what is arguably one of the most significant institutional resets in recent decades. While foreign media outlets applaud these changes, often aligning their coverage with state visits and diplomatic niceties, domestic media appears either distracted, disinterested, or worse, willfully silent. The disparity in narratives is not just journalistic laziness; it reveals deeper tensions in how economic change is communicated, politicized, and understood in India.

The sarcasm-laced comparison between domestic news focusing on toilet shortages in bank branches and the “phoren” media’s glossed-up praise is more than just rhetorical—it captures a truth. Despite the introduction of major reforms like the Insolvency and Bankruptcy Code (IBC), the recapitalization of public sector banks, and increasing regulatory scrutiny on non-performing assets (NPAs), coverage within India’s mainstream media remains superficial. At best, it is limited to reporting the numbers; at worst, it is content to echo the political lines dictated by party loyalties. What should be an in-depth, ongoing exploration of systemic change becomes reduced to event-driven journalism—either celebrating a one-off success or panicking over a new fraud case.

You rightly mention the lack of attention to structural transitions in major business houses. These conglomerates are now being forced to deleverage—not necessarily out of voluntary prudence, but due to tighter credit conditions and increased transparency requirements. This is a major consequence of banking reforms and regulatory tightening post-2015, especially with the Reserve Bank of India (RBI) mandating stricter norms. Yet, little is explored about how these businesses are adapting, reconfiguring, or even collapsing under pressure. The media silence here isn’t just about ignorance—it is about choosing not to ruffle feathers, especially when political-business nexus still determines so much of power play in India.

There’s also a powerful line in your piece that deserves underlining: “The Netas want the businesses by ‘their side’, and this seems to be much needed rather than the voters which are rather cheap.” This brutal truth highlights how reforms in India, even when commendable, are often subverted by political opportunism. Businesses that are cozy with the ruling establishment find smoother exits, while those out of favour bear the brunt of bankruptcy laws or public condemnation. If the bankruptcy code is to succeed, it must be applied impartially. Yet, we continue to see selective enforcement and behind-the-scenes lobbying that diminishes its legitimacy.

Moreover, your critique of the lack of reporting on credit appraisal reform and audit responsibility touches a vital nerve. The entire banking crisis in India was not merely about bad loans—it was about how loans were sanctioned in the first place. Credit was often extended based on relationships, influence, and political patronage rather than business viability. Despite the IBC and other reforms, has the actual process of credit assessment changed in a fundamental way? Has risk assessment improved? Are bankers now empowered to say “no” when faced with a politically-connected borrower? These are questions that media, policymakers, and auditors should be answering in unison—but instead, we find an eerie silence.

Even more concerning is the audit and compliance aspect. Public sector banks have historically been plagued by weak internal controls and even weaker accountability. As you note, process breaches were rampant, but how many audit reports called them out? And how many of those warnings were acted upon? Unless the audit ecosystem is cleaned up, we’re merely pouring new wine into old, leaking bottles.

In conclusion, your article serves as a compelling wake-up call. Celebrating reforms without questioning their depth or sustainability is premature. What we need now is not congratulation, but continued vigilance. Reforms don’t end with new laws or media praise—they begin with institutional change, cultural shifts in banking practices, and above all, accountability. Until then, the story of India’s banking transformation remains half-told—buried beneath media neglect and political calculation.

The ‘Game’ and Humbling of the Tycoons