The NPAs and its’ Management
By: Amit Bhushan Date: 14th August 2017
We have once again the economist of all hues coming out to discuss the ‘issue of NPAs’ of the Public Sector Banks, however the Management of NPAs is seldom discussed i.e. for how long have the Asset been NPA, what other Assets belonging to the same management have also been NPA, previous history of these Managements and such Assets of moving in and out of the NPA tag status etc. In fact, the commercial news media only calls NPAs an issue while leaving the Management of these NPAs as non-issue without any examination or even cursory look towards the point mentioned. And it then goes on to point the mis-management of the Public Sector Banks which are again mostly run by the bureaucrats. No wonder the employees of the banks seem to be a bit cheesed off.
While there have been calls for ‘Hair cuts’ or for even faster resolution of 'policy bottlenecks' to bring these Assets back to health, however even our independent news media seems to be rather skirting away from discussing past track record of the ‘Management’ speaks volumes in itself. It may be noted that the same commercial news media would not mind going gung ho in case of slip ups in performance of Public Sector Undertakings. Or taking time out to discuss family issues and giving such news its creative touch, when it is around some of the known business families. Now that more businesses are becoming compliant with the advent of Goods and Service Tax mechanism and more people are forced to pay those taxes, it’s just about normal that we raise the bogey of taxpayers’ money a bit louder, however it may not suit some of the Netas, probably.
While banks and bankers provided important service to the government and public during demonetization as well as drive towards cash-less, however they are now forced to interest rates on deposits as well as shed employment in order to sustain their costly borrowers and looking for bailout by taxpayers. The commercial news media remains shy as ever to even discuss the issue which is happily blamed on the bank management meaning those few bureaucrats at the helm of each of these banks. In fact the opposition has failed to question the government targets for support to SMEs and how are they being achieved since there are few banks’ which seem to be lending these days.
It is also ironic that many of these Managements’ might still be keenly looking to bag still more government projects be it in Defense, or Infrastructure or Resources of even fresh PPP projects. There doesn’t seem to be any regulation or black listing norms or either a demand for the same so that there could be a better behavior. It is also strange that no economist from whichever party allegiance would ever discuss ‘issue for such norms or their absence or lack of implementation’ in central as well as state level contracts. Or a Central registry for such norms of dictum that can serve as guidance or help in due diligence especially when foreign investors are looking for partners/contractors. Let’s see the ‘Game’ evolve …
By: Amit Bhushan Date: 14th August 2017
We have once again the economist of all hues coming out to discuss the ‘issue of NPAs’ of the Public Sector Banks, however the Management of NPAs is seldom discussed i.e. for how long have the Asset been NPA, what other Assets belonging to the same management have also been NPA, previous history of these Managements and such Assets of moving in and out of the NPA tag status etc. In fact, the commercial news media only calls NPAs an issue while leaving the Management of these NPAs as non-issue without any examination or even cursory look towards the point mentioned. And it then goes on to point the mis-management of the Public Sector Banks which are again mostly run by the bureaucrats. No wonder the employees of the banks seem to be a bit cheesed off.
While there have been calls for ‘Hair cuts’ or for even faster resolution of 'policy bottlenecks' to bring these Assets back to health, however even our independent news media seems to be rather skirting away from discussing past track record of the ‘Management’ speaks volumes in itself. It may be noted that the same commercial news media would not mind going gung ho in case of slip ups in performance of Public Sector Undertakings. Or taking time out to discuss family issues and giving such news its creative touch, when it is around some of the known business families. Now that more businesses are becoming compliant with the advent of Goods and Service Tax mechanism and more people are forced to pay those taxes, it’s just about normal that we raise the bogey of taxpayers’ money a bit louder, however it may not suit some of the Netas, probably.
While banks and bankers provided important service to the government and public during demonetization as well as drive towards cash-less, however they are now forced to interest rates on deposits as well as shed employment in order to sustain their costly borrowers and looking for bailout by taxpayers. The commercial news media remains shy as ever to even discuss the issue which is happily blamed on the bank management meaning those few bureaucrats at the helm of each of these banks. In fact the opposition has failed to question the government targets for support to SMEs and how are they being achieved since there are few banks’ which seem to be lending these days.
It is also ironic that many of these Managements’ might still be keenly looking to bag still more government projects be it in Defense, or Infrastructure or Resources of even fresh PPP projects. There doesn’t seem to be any regulation or black listing norms or either a demand for the same so that there could be a better behavior. It is also strange that no economist from whichever party allegiance would ever discuss ‘issue for such norms or their absence or lack of implementation’ in central as well as state level contracts. Or a Central registry for such norms of dictum that can serve as guidance or help in due diligence especially when foreign investors are looking for partners/contractors. Let’s see the ‘Game’ evolve …