The steel minister ought to be sent to meet the farmers so that he can gain knowledge about the miserable conditions actually prevalent there. May we please request the prime minister to remove such jokers from the Cabinet?
All attention has been focused on the out-of-turn allotments of coal blocks, ultra mega power projects (UMPPs) and the measly rent for the Delhi international airport from the contractor—following the Comptroller and Auditor General of India (CAG) report. However, the weather conditions continued to cause worry and the drought got pushed to the background unceremoniously as a result.
We almost forgot the monsoon failure until the ludicrous attempt by steel minister Beni Prasad Verma’s gaff on how the price rise and inflation are actually ‘good’ for the farmers.
Instead of looking into the economic situation of the steel industry, such as the falling price of iron ore and China not showing keen interest to import or how some of the top steel makers are affected by the lack of coal or power supply Mr Verma has chosen to talk about inflation.
Being a steel minister, he obviously does not know that the vast difference in the retail price in the city and the actual net realization by the farmer for his produce is eaten by a horde of middlemen. And, of course, Mr Verma does not realise that a paddy grower does not eat just rice alone but there are other things that go with it, and for which he has to pay much higher prices, thanks to ‘inflation’.
It is time prime minister Dr Manmohan Singh relieves Beni Prasad Verma of his steel ministerial post and appoint him as “minister on special duty” and send him on a “bus-yatra”, or preferably, a “pada-yatra” to the rain-affected areas to meet the farmers, so that he can gain knowledge about the miserable conditions actually prevalent there. After hearing the farmers’ woes, Mr Verma can explain to them how ‘inflation’ is beneficial to them.
May we please request the prime minister to remove such jokers from the Cabinet?
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)
Moody's said the proposed rules by RBI would hurt companies that depend on parent banks for capital and brand support
New Delhi: State Bank of India (SBI) and ICICI Bank are among those that would be affected if Reserve Bank of India (RBI) implements its proposed guidelines on banks' exposure to their group entities, credit rating agency Moody's said, reports PTI.
Last week, the RBI released draft guidelines to limit banks' exposure to their own group non-financial and financial entities.
As per Moody's, the proposed rules would hurt companies that depend on parent banks for capital and brand support, particularly those with large international operations, or those that operate insurance, securities or asset management businesses that need capital and liquidity support to meet their business needs.
"If the RBI adopts them, the new guidelines would be credit positive for India's banks, but credit negative for group companies that rely on parent banks for capital and brand support," Moody's Investors Service said in a report.
It said the "affected banks" include ICICI Bank, State Bank of India, Bank of India, Bank of Baroda and Kotak Mahindra Bank.
"The guidelines would lead these banks to re-examine the financial support they provide to group businesses as anything exceeding the stipulated limits would be detrimental to their standalone capital calculations and thus their business growth," Moody's said.
The rules, it said, would benefit India's banks because they would reduce their concentration and contagion risks from group activities.
The guidelines, if implemented, would limit to 5% of paid-up capital and reserves a bank's exposure to a single group non-financial entity, while the maximum exposure to regulated financial services companies would be 10%.
However, Moody's said that for the time being, these draft guidelines do not help the banks in any way cope with their immediate asset quality challenges owing to the difficult environment.
According to CVC, professionals empanelled by banks and insurance companies like advocates, engineers or valuers, chartered accountants and surveyors are sometimes involved in unfair practices including false or distorted reports which lead to distressed assets of the banks or unfair claims settled in insurance companies
New Delhi: The Finance Ministry has asked state-owned banks and insurance companies to take up the issue of misconduct by professionals like advocates and chartered accountants with their regulating bodies like Institute of Chartered Accountants of India (ICAI) or Bar Council of India (BCI), reports PTI.
The ministry has issued the directive to heads of public sector banks, financial institutes and insurance companies on an observation made by Central Vigilance Commission (CVC) which had said sometimes professionals present misleading reports which lead to distress assets and misleading claims.
"Banks and insurance companies should approach the professional bodies with complaints of professional misconduct ...for suitable action," the ministry said.
The professional bodies mentioned in the communication include, Bar Council of India, ICAI, Institute of Cost and Works Accountants (ICWA) and Institute of Engineers.
The CVC had observed that "it has come to light that the professionals empanelled by banks\insurance companies viz advocates, engineers\valuers, chartered accountants, surveyors etc., are sometimes involved in unfair practices including false\distorted reports which ultimately lead to distressed assets of the banks or unfair claims settled in insurance companies".
While fixing up accountability, the maximum that the banks can do is to de-panel such professionals to future assignments.
"Since, decisions taken based on such reports result in huge losses to the organisations, mere de-panelment does not serve as deterrence to such unscrupulous professions," the Commission had observed.
The Ministry has asked the public sector banks (PSBs), financial institutions (FIs) and insurance companies to insert an "enabling clause" in the tenure of appointment or engagement of professionals.