Merging of banks: Reform or damage control measure?
The merging of banks is in news in the recent days. The government is calling it a reform of banking sector. This could be one of the many blunders that the government could be making in order to cover up for the many blunders to bail out the banks that have suffered many setbacks with economic burden of bad loans. Demonetisation was another massive blooper that way and the country is still paying for that mistake.
Three major public sector banks of the country – Bank of Baroda, Vijaya Bank and Dena Bank would be merged to make good for the bad loans given out to companies. This is being projected as a ‘reform’ which is not the case. But if the centre thinks this step will help the banks get better, it is nothing more than a pipe dream. In the recent times Bank of Baroda had reached some healthy space fiscally due to its decisions. But that process will now hit a roadblock.
Finance minister Arun Jaitley has been giving statements to bank employees that the government is trying to protect the interest of all banks with this step. No employee will probably face an unsavoury situation regarding his/her work owing to this merger. In the past, the subsidiaries of State Bank of India had merged to form a single identity. But the employees had complained of their professional life being affected by that merger. They have said they face discrimination before the SBI main employees. Their promotions and increments have been badly affected.
Decisions relating to public sector banks have caused a deep damage to the economy. Public sector banks comprise 2/3rd of the banking sector in the country. Non-recoverable loans and non-performing assets are major problems that cannot be solved easily. Their illness has become quite a bit of a deterrent in making the economy any better. New loans are hard to come by. Jaitley has been saying merger of banks is the only solution to all this.
It’s an old news that big banks gave massive loans to mega corporate companies that turned into a huge bungle. The banks will now have to take corrective measures before doling out loans to big companies here after. Many bank managers are undergoing mental torture owing to investigations that are in progress on having facilitated loans for big players of corporate companies. A few reconciliatory measures have to be initiated to bring back the confidence among bank managers in this regard.
It would be downright unwise to merge a few public sector banks and create conducive atmosphere for the government in its economic affairs. The government does not have a proper response to the question that raises concerns about merging small banks to create a bigger bank. Any organization that turns big, also brings big problem with it. If that fails in that form in the future, the problem it leaves behind is also big enough to tackle.
Today the government has to work on sorting out the mess. A team of managers has to be built who can work without political interference to help find a solution to this issue. Political pressure on bank managers is a common thing that’s known to all. Some higher level managers would be speaking for bigger power houses within their banks all the time. They hesitate to initiate action when the defaulters are big industrialists or entrepreneurs. This has turned into a bigger menace for public sector banks. The step to merge banks to tackle this crisis, thus hoping to lift the banks from quagmire, is another disaster in the making. The government should know danger lies right ahead of this decision.
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Rishabh Pant's troubles continue as Punjab Kings push LSG towards exit door
Dharamsala, May 4 (PTI): Rishabh Pant lost the grip on his bat and the match simultaneously as Punjab Kings rode on heroics from the two 'Singhs' -- Prabhsimran and Arshdeep -- to literally push Lucknow Super Giants to the brink of elimination with a 37-run win in an IPL match here on Sunday.
It was Prabhsimran's 48-ball 91 that formed the cornerstone of Punjab Kings' unassailable 236 for 5 and any hopes of a remarkable chase was nipped in the bud by Arshdeep's (3/16 in 4 overs) now familiar Powerplay spell which summarily destroyed the opposition top-order.
This time, he got the three top run getters -- Mitchell Marsh (0), Aiden Markram (13) and the ever-dangerous Nicholas Pooran (6) -- to swing the match decisively in Punjab's favour. Ayush Badoni's (74 off 40 balls) effort was a good one albeit it came for a losing cause.
LSG were finally restricted to 199 for 7 in 20 overs and even if they win their last three games and get to 16 points from 14 games, their net run-rate can make things difficult for them.
Punjab Kings are now placed second with 15 points from 11 games and one more win could possibly clinch a place in top four for them.
But what is becoming an eyesore is LSG's Rs 27 crore worth skipper Pant's inexplicable approach which has fetched him a dismal 128 runs in 11 innings at a sub-100 strike-rate (99.22).
On the day, he scored 18 off 17 balls and that he is completely out of sync was evident in the manner he tried to throw the proverbial kitchen sink at an Azmatullah Omarzai delivery. There was no control in his shot as the bat took off on parabolic curve towards square leg and the ball went towards deep point.
Pant's misery was a testimony of LSG's wretched campaign that was lost at the auction table when the owner decided to go with a sub-standard bowling attack based on a half-fit talented pacer Mayank Yadav.
Mayank has already lost at least 10-15 yards of pace post rehabilitation under the watch of Nitin Patel at the National Cricket Academy.
On Sunday, he went for 60 runs off four overs with half a dozen of sixes struck off his bowling.
The pint-sized Prabhsimran packed a mean punch in his strokes as he blasted his way to a 48-ball 91 with the help of six fours and seven sixes.
The Punjab keeper-batter should have got his second IPL hundred but an ambitious switch hit off Digvesh Rathi saw him head back to the pavilion, nine runs short of what would have been a deserving milestone.
Towards the end, Shashank Singh scored 33 off 15 balls to take PBKS to what looked like an unassailable total. There were 16 sixes hit by Pujab Kings with 13 coming off pacers.
Prabhsimran was initially a passive partner as it was Australian Jos Inglis who launched the first attack with a hat-trick of sixes off Mayank Yadav, whose speed has decreased by at least 15 kmph post his intense rehab under Nitin Patel at the BCCI's erstwhile National Cricket Academy to recover from back injury.
However, once Inglis was dismissed, Prabhsimran, along with skipper Shreyas Iyer (45 off 25 balls), took control of the game. They were only helped by some atrocious fielding from Avesh Khan, who would probably go down as the worst fielder in the 18-year history of IPL.
Adding insult to injury, Prabhsimran took the tall MP fast bowler to the cleaners as he was pulled over mid-wicket for back-to-back maximums. Khan went for 57 in four overs and if around 15 runs due to his misfielding is added, he caused the maximum damage for his team.
The duo of Prabhsimran and Iyer added 78 runs in 7.5 overs before Rathi, LSG's best bowler on view, became the first spinner in the current season to account for Punjab Kings skipper's wicket.
But Prabhsimran continued like a man possessed and LSG bowlers were guilty of feeding to his strengths throughout the innings.
