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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Rohit identifies Arshdeep, Hardik as key to India's chances in T20 World Cup
New Delhi (PTI): T20 World Cup-winning captain Rohit Sharma reckons all-rounder Hardik Pandya and left-arm seamer Arshdeep Singh will hold the key to India's prospects in the upcoming edition of the tournament.
Defending champions India will enter the T20 showpiece as one of the overwhelming favourites due to their massive depth and quality.
Rohit highlighted Arshdeep's effectiveness with the new ball and at the death.
"It is a big positive to have both Jasprit Bumrah and Arshdeep Singh together because they always attack for wickets. Arshdeep's biggest strength is swinging the new ball and taking early wickets. He mainly bowls with the new ball and at the death. Starting and finishing are the most important phases, and he is strong in both," Rohit told JioHotstar.
"With the new ball, he swings it to get left-handers caught in the slips and targets the pads of right-handers. He has also started taking the ball away from right-handers. These skills are key for a new-ball bowler. He always tries to take wickets, which is why he bowls the first over."
Rohit added, "In the 2024 T20 World Cup final against South Africa, he did a great job. I still remember he dismissed Quinton de Kock when he was set and batting well. In the 19th over, he gave away just two or three runs, which built pressure on the South Africans.
"That is his game, bowling with the new ball and at the death, and he will play a key role for India in the 2026 T20 World Cup."
India won the last edition of the tournament in the Americas under Rohit's captaincy, after which the dashing opener retired from the T20 format internationally.
Rohit also spoke about how Hardik's dual role as a finisher and multi-phase bowler provides crucial balance to the Indian team.
"Whenever Hardik Pandya is in the team, his role is huge. He bats and bowls very consistently. His batting is crucial when the team is stuck. If we have a score of 160 on the board in 15-16 overs and Hardik is batting, then he's the one who can help the team reach 210-220 from there or if we are 50 for 4, he has to build the innings.
"Batting in the middle order at 5, 6, or 7 is very tough. That is why Hardik's role is critical in any format. We know his bowling. He bowls in key phases, with the new ball, in the middle and in the death as well. His role is very important because he gives the team balance, letting us play six bowlers and keep our batting deep."
Rohit said accommodating both Kuldeep Yadav and Varun Chakravarthy together in the playing XI is going to be a big challenge for the Indian team management.
"The biggest challenge for captain Suryakumar Yadav and coach Gautam Gambhir will be how to play both Kuldeep Yadav and Varun Chakaravarthy together. If you want that combination, you can only do it if you play with two seamers, which is a big challenge.
"But honestly, I would be tempted to play both Varun and Kuldeep because they are wicket-takers and batters struggle to read them. I would surely pick them."
The former India skipper added, "Looking at the conditions in India, like in this New Zealand series, there is a lot of dew. In February and March, dew will be heavy across most parts as winter ends.
"Even in Mumbai, which doesn't get cold, there's still dew. I'd say 90-95 percent of grounds in India have dew. That's the challenge. What do the coach and captain think? Are they comfortable with three spinners? Then they can play spin, but there's no fixed rule. It depends on the team leaders' thinking."
Rohit also urged Kuldeep to stop appealing on every ball and to rely on the wicketkeeper's judgment for reviews.
"My one simple advice to Kuldeep is to just bowl quietly and go back to his mark. You can't appeal on every ball. This is basic. I keep saying it, but it still happens often. Even after telling him many times, he appeals at every chance. You have to use your head. Just because it touches the pad, it doesn't mean it's out every time. This isn't gully cricket.
"I get he is enthusiastic, but think of the team first. Each team only gets two DRS reviews. If I was the keeper, I could see where the ball pitched and if it was hitting, I could tell the bowler.
"But from covers or slip, you don't know the angle. You have to listen to what the keeper and bowler say. That's why when there's a review off Kuldeep's bowling, I don't look at him, I look at the keeper to decide."
The T20 World Cup is scheduled to be held in venues across India and Sri Lanka from February 7 to March 8.
