Was looking that the YES bank fiasco and tracking the story and all of a sudden there is no news, COVID 19 is news. If the RBI in its wisdom had announced that SBI would invest in YES bank first, instead of announcing a moratorium. The YES bank shares would have gone through the roof. But that was not possible because then for 7500 crores SBI would have got a few shares instead of 49% at a ridiculous price. What a game changer, just a shuffle of the decisions made. Why was SBI going to put public money in what RBI considered a failed bank? Why was this same logic not available to save a failed airline Jet Airways?
Both Jet Airways and YES were inherently good companies, great technology and cutting edge service, but with immoral and greedy owners. In India, decades back Swaraj Paul the original raider proved the point when he made a hostile bid for Escorts, indian owners even with a small holdings act and decide as if the they own 100%. Ofcourse there are many public companies where those who own 5% shares (mistakenly called owners) call the shots and even large FII’s like LIC or SBI sit at the board simply eating cashew nuts and drinking a beer, while the ‘owner’ squanders the company money. YES bank’s technology platform is probably the best in the Indian banking sector. In the case of YES bank, RBI sat on its hands for reasons best known to all.
None of the money laundering charges against the promoter warranted a moratorium, he could have been handled separately. It is no surprise that YES bank gave loans to shady promoters, that is occupational hazard for bankers in India, a phone call from someone and the papers move and loans disbursed without actually meeting the laid down criteria. This is not going to change unless criminal action is initiated against the borrowers and those who sanction such shady loans or frauds. Once this happens, sanctioning authorities will politely tell the caller that he cannot sanction the loan as he will get into trouble and indian banking will be saved of this malady…bad loans. So basically we need the LOCKUP in order to control the “virus of greed” that is fast spreading in Indian business with the political and regulatory systems not maintaining ARMS LENGTH decision making.
This is wishful thinking at present as the country has gone into a lockdown and PM Modi has said lets us focus on health of our communities and we will discuss health of our economy at a later stage. The saying “Aiz makha, faliam tukha” over many goan cemeteries is becoming a stark reality. China first reported this new virus and as it spread like a wildfire, we seemed to hope it did not come to India or that the heat would stop it. No such luck and it is now inside India, and today Goa.
The PM’s clarion call for a “Janta Curfew” seemed to have galvanised the Goan administration into action. Till then they were blind sided by the inconsequential ZP elections. Once these were postponed and then cancelled, the decisions started flowing. A one day lock down to coincide with the PMs call, which was great to see almost 100% adherence till 5 PM, when it unravelled and displayed the lack of knowledge among the population. This success prompted the complete lockdown for 3 days, however the PM’s call at 8 PM talking of a 21 lockdown meant another change and Goa also went into a 21 day lockdown. This 8 PM announcement is turning into a bandi of sorts, first Notebandi and now Gharbandi.
While everyone seems to agree that this is the only and best way of stopping the virus from making giant inroads. It created a panic, what does one do for groceries in the next 21 days. Earlier many heeded the PM’s call not to stockpile and now those who disobeyed this request were laughing. This is something that tax tax evaders are very familiar with, they have the last laugh at the honest tax payers. The governments both Centre and State have calmed the nerves by putting mechanisms to ensure delivery of essential goods to households, so now everyone can calm down, pick a book or a beer and settle down for 21 days of doing nothing.
Actually there is a lot you can do, for one all the things you did not do for want of time, you can try it now. Talk to your neighbours across the balconies, read some books, watch movies, call up long lost relatives and use the magic of the internet to visit other peoples homes, good use of virtual reality. If you find something interesting to do, share it on your WA groups, please refrain from forwarding unverified news.
The economy was reeling and this is another body blow, however make no mistake, when the going gets tough the tough get going, so the Indian economy will bounce back and pretty soon for sure. This lull will be used by the economic think tanks to provide ideas that can help industry hit the ground running once this storm passes. There is also opportunity as going forward as the World will be looking to remove some eggs from the Chinese basket and India is one place they can put them, we will have to ramp up our quality and productivity.
These are difficult days and support to the Government will ensure we can fight this virus together. Whatever y
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