NPAs - The bane of banking industry.

The NPAs in banking industry is the hot issue that is being debated at the highest quarters whether be it in bank board rooms, RBI or the finance ministry. All are obsessed with how to contain and reduce this growing monster. The issue of NPAs is not addressed appropriately by the powers that be. The genesis and growth of NPAs are not entirely due to the real banking and economic reasons. But then there are some big sharks in the system who willfully withhold repayment. These wilful defaulters are often has the  protection of and shielding from the politicians. The NPAs occur broadly on account of the following situations.
1. Ineligible / undeserving selection of borrowers often to meet the budgeted targets.
2. Stiff and unrealistic targets stipulation.
3. Lack of proper post sanction/disbursement monitoring often due to inadequate manpower.
4. Fulfillment of social responsibility concomitant with public nature of the government owned banks where the economic / commercial viability of the proposal takes a back seat in Sanctions.
5. The real unforseen adverse economic environment which stiffles the growth thus making the funds employed unproductive (NPAs). The inordinate delay, inertia and redtapism (read corruption) while clearing / sanctioning the projects /proposals also add up to NPAs.
6. Last but not the least the willful defaulters. The politician - industrial houses nexus of all hues is the real hard nut to crack. They have the capacity to pay and at the same time has the muscle and the power NOT to pay. Sometimes politicians shield and protect them and in some cases politicians themselves are at play. These have the legal, political and financial wherewithal to thwart, to tweak, to manipulate and evade the long arm of the law. A case in point is Kingfisher saga.

Then, what is the remedy / solution to this menace? The following proposals / suggestions could be thought of.

1. De link social banking from commercial banking. Establish a separate arm for social lending outside of the Basel norms. After all any government cannot absolve itself of the welfare responsibility for economic and commercial considerations. Free banks from this responsibility and make them truly commercial and business entities. I am afraid if I am flogging a dead horse by suggesting this. The enormous and omni present network of banks is too difficult for any government not to resort to this low hanging fruit to implement their welfare schemes.

2. Make stringent laws and amend existing laws to enable quick disposal of suits related to money and finance. This is of utmost importance because many wilful defaulters are taking shelter under loopholes in law.

3. Establish fast track courts to adjudicate money and finance suits. Amend law to give them Supreme powers so that Judgements given by these fast track courts are not appealable in civil courts. They should be made appealable only in a similar fast track higher courts. This will avoid long drawn legal battles and enable quick resolution of cases. This will also works as a deterrent to borrowers who often resort to legal route on some flimsy grounds with chief intention of avoiding repayment. This will enable the blocked funds to enter banking system and recycle them for further lending.

4. Courts also should view these cases with larger good in mind than the individual good because banks at the end of the day are the trustees and custodians of public money.

These I believe though seems to be *far-fetched* will definitely yield good results if implemented. It requires political will to do that. But then it is a million dollar question. These will make the banks sound and healthy and also make the economy vibrant. But every body seems to *bury their head in the sand*.

What is ailing the trade union & the Bank.

19 th October was the foundation day of SBIOAK. 36 years ago on this day SBIOAK was formed when even the circle was not born. A rare and interesting feature of SBIOAK.

SBIOAK was born out of rebellion. It is a child born out of resentment of discrimination and step motherly treatment meted out by the erstwhile Madras circle which Karnataka was a part of. It was an orphan because it had neither affiliation from its own federation nor recognition from the Bank because it came out of Madras circle in protest. The founders of this orphan baby comrade Nanjappa & comrade late Mandanna has to be given a red salute for their heroics and sacrifices.

Having such a difficult birth, it went on to produce the best trade union leaders not only in SBI but supplied to the whole industry as well. Having such a proud and colossus stride, it faltered when the winds of change in the banking industry started blowing fast and furious. Somehow it failed to get wind of change and adjust its sail to the wind. What happened after this watershed moment is with in the knowledge of every state banker. And the management after tasting blood further tightened its hold. The emaciated trade union is undergoing tremendous testing times and is in dire need of rejuvenation and reinvigoration. This can only come from its membership who has to demonstrate and reinvest their faith in it. They should have patience and perseverance.
It is a cycle. What goes up has to come down and what comes down has to go up.

Trade union is a necessary evil even if one considers it an evil. It provides checks where needed for the healthy and fair conduct of banking business. It is almost akin to an adage - a strong opposition is a sign of progress in democracy. A strong trade union is needed to ensure that the bank does not falter.

The birth pangs of the Brigade.

The Sangolli Rayanna Brigade, presumably the baby of Mr. Eshwarappa but conceived elsewhere is undergoing birth pangs. It has embroiled itself in one controversy or the other. The opposition to it from the president of state unit of the BJP Mr. Yediyurappa is understandable as it will create another centre of influence with in the party. But the moot point is why at all Mr. Eshwarappa was allowed to form this controversial outfit in the first place. How can Mr. Eshwarappa go against the wishes of state president of BJP? Where from he draws the strength and courage to take on Mr. Yediyurappa. These are the questions bothering the state unit of BJP. The fact remains that *even the dog in the street knows* that Mr. Eshwarappa cannot embark on this farce without the tacit nod of the people at the helm especially the mentor from the Nagpur headquarters. It is a ploy to contain / rein in the speeding Yediyurappa who his detractors say is functioning unilaterally. But it will just not stop at that point. There is one more dimension to it. People who have willingly allowed this Brigade to make some noise are trying to hit two birds with one stone.
One to contain Mr. Yediyurappa and two, to make some inroads into the Kuruba community by using the Kuruba face of Eshwarappa in the next assembly election. It is a simple electoral arithmetic. So far Kuruba community which has a sizeble population has been identified with Mr. Siddaramaiah, the powerful Kuruba community leader. In the process the people who have allowed this farce it appears, are oblivious of the fact that it cuts both ways. It gives a very wrong signal to the people of Karnataka on the eve of the assembly election. A party with a difference cannot project itself as a party of differences.
What is even more disturbing is the fact that the Brigade vows to bring seers of many mutts into its lap with an intention to finally merge with the BJP. Probably this is a lateral entry or call it a back door entry of religious mutts into a political party. This will make it official what the seers and mutts were doing from behind the scenes and with some hesitation. A heady mix of religion and politics.

Drama Juniors

The serial episode "Dramaa juniors" in Zee kannada TV channel ended today. It is the best TV program that is telecasted in recent times. The performance of the young kids was something amazing and beyond words. The kids majority of them under 10 years of age brought out an astounding histrionic episodes which received the accolades of the entire state of Karnataka and even kannadigas living abroad who watched the program. They enacted some of the difficult characters which required the maturity of a seasoned and elderly artist. And the beauty is they did it effortlessly and with ease. Their utterance of long and difficult dialogues simultaneously with intricate acting stupefied even the best names in the business.
Congratulations to Zee TV for conceiving and conducting such a superlative concept of drama when the idea of drama itself is being forgotten. My sincere thanks to the mentors who would have toiled hard to bring out the best in the child prodigies. And the adjudication of the winners was also very fair with out any bias. Thanks to the judges for their accurate objectivity. And last but not the least - congratulations to Chitrali and, Puttaraju for sharing the first prize and runners up the comedy king called Mahendra & Amogha.

This program is a silverlining in an otherwise dull, boring, negative and lackadaisical programs /serials.

BJP is counting chickens before they are hatched.

The so called Sangolli Rayanna brigade spearheaded by one of the senior leaders of BJP Mr. Eshwarappa has unsettled the state unit of the BJP. The very purpose of creation of this brigade in the first place is not clear and it was not necessary either. It has "set cat among the pigeons". This misdemeanor by Eshwarappa is not entirely his own is too well known in BJP circles and its mentor the RSS. There are some invisible vested interests/forces throwing their weight surreptitiously behind this bizarre idea and it is not difficult to decipher these. Eshwarappa is only a tool in this mischief. The unstated /hidden purpose behind this is to contain, rein in Mr. Yediyurappa whom these people think that if BJP comes to power in next assembly election he will become all powerful. BJP has started "counting the chickens before they are hatched". Gradually, the problem is going from bad to worse so much so that a truce was brokered between Yediyurappa and Eshwarappa in the recently concluded BJP meet in Kerala. Even than the embers have not died down. This made a worried high command issue a stern warning to the warring leaders /groups and despatch its trouble shooter in Ramlal. By this it appears that BJP is a party in great hurry. This spat in public over an unnecessary issue /problem invented and nurtured by the selfish leaders will do more harm than good. At the end of the day, Mr Yediyurappa is only capable of steering the party throughout the state and other leaders have limited pockets of influence. Instead of strengthening his hands, he is being hamstrung. The state unit and the BJP high command should realize this and supplement him and not supplant him.