The haste of Govt in announcing buying 49% shareholding in Yes Bank is quite surprising because such worry about customers of PMC Bank depositors was not seen as they are still sitting outside RBI waiting for their money with PMC Bank.
Same story will be repeated that the defaulters will be referred to NCLT and after some small settlement amount the balance will be written off, obviously the burden will be more on largest shareholders which will be SBI.
Government will raise more funds through increasing Excise duty on Petroleum products or will offer some stake in PSU.
A lot of things are being written about failure of Modi government to arrest failure of Yes bank . but can any body shed light on failure of following during the regime of PM who was RBI Governer also .
1 GLOBEL TRUST BANK 2 SOUTH GUJARAT BANK 3 CENTURIAN BANK 4 UNITED WESTERN BANK 5 NANITAL BANK 6 GANESH BANK 7 LORD KRSHNA BANK 8 BHARAT OVERSEAS BANK 9 SANGLI BANK 10 BANK OF RAJSTHAN 11 ING VESHYA BANK .
When all these Banks vanished and why ? I think it was during 2004- 14 A.D. in India .
Public sector banks and private sector banks in India both suffer from their respective crippling cultural problems. Underlying both is a culture of cronyism, rent-seeking and incompetence. While the public sector banks have been milked by the crony capitalist industrialists and their collaborators in the bureaucracy and political parties, they are also burdened with non-performing, unionized, low-skilled customer facing staff who resist modernization of systems and treat customers like an unwanted intrusion on their peaceful existence. The private banks also favor the same crony capitalists, the only difference being that they are also owned and led by crony capitalists – of which Yes Bank chief Rana Kapur seems to be one. The crony capitalist owners secure their own interests, and run the bank like a private fiefdom. Their boards – as in case of Yes Bank – offer comfortable sinecures to serving and retired IAS officers, whose hallmark is incompetence, self-importance and rent-seeking; in this respect they are no different from the public sector banks. The price is paid, in case of public as well as private banks, by depositors and minority shareholders…. and the Indian economy, which is crippled by lack of a functioning system of credit to finance growth.
Regrettably, granting licence to private banks is now seen as a licence for dipping into the pockets of thousands or lakhs of people. A pick pocket is caught and thrashed by the public. A tycoon caught claims illhealth and gets admitted into a hospital, or better still, walks out of the country with seven suitcases like Mallya.
The haste of Govt in announcing buying 49% shareholding in Yes Bank is quite surprising because such worry about customers of PMC Bank depositors was not seen as they are still sitting outside RBI waiting for their money with PMC Bank.
Same story will be repeated that the defaulters will be referred to NCLT and after some small settlement amount the balance will be written off, obviously the burden will be more on largest shareholders which will be SBI.
Government will raise more funds through increasing Excise duty on Petroleum products or will offer some stake in PSU.
A lot of things are being written about failure of Modi government to arrest failure of Yes bank . but can any body shed light on failure of following during the regime of PM who was RBI Governer also .
1 GLOBEL TRUST BANK 2 SOUTH GUJARAT BANK 3 CENTURIAN BANK 4 UNITED WESTERN BANK 5 NANITAL BANK 6 GANESH BANK 7 LORD KRSHNA BANK 8 BHARAT OVERSEAS BANK 9 SANGLI BANK 10 BANK OF RAJSTHAN 11 ING VESHYA BANK .
When all these Banks vanished and why ? I think it was during 2004- 14 A.D. in India .
Public sector banks and private sector banks in India both suffer from their respective crippling cultural problems. Underlying both is a culture of cronyism, rent-seeking and incompetence. While the public sector banks have been milked by the crony capitalist industrialists and their collaborators in the bureaucracy and political parties, they are also burdened with non-performing, unionized, low-skilled customer facing staff who resist modernization of systems and treat customers like an unwanted intrusion on their peaceful existence. The private banks also favor the same crony capitalists, the only difference being that they are also owned and led by crony capitalists – of which Yes Bank chief Rana Kapur seems to be one. The crony capitalist owners secure their own interests, and run the bank like a private fiefdom. Their boards – as in case of Yes Bank – offer comfortable sinecures to serving and retired IAS officers, whose hallmark is incompetence, self-importance and rent-seeking; in this respect they are no different from the public sector banks. The price is paid, in case of public as well as private banks, by depositors and minority shareholders…. and the Indian economy, which is crippled by lack of a functioning system of credit to finance growth.
Regrettably, granting licence to private banks is now seen as a licence for dipping into the pockets of thousands or lakhs of people. A pick pocket is caught and thrashed by the public. A tycoon caught claims illhealth and gets admitted into a hospital, or better still, walks out of the country with seven suitcases like Mallya.