SUBSIDIZING PRIVATE BANKS?
When the government announced a scheme
aimed at putting cash into BPL hands for two square meals a day, a cacophony of
learned corporate intellectuals pontificated over the evil of such hand outs
to the poor.
Better, it was argued, to give that money to
entrepreneurs and industrialists to set up units to provide jobs, instead of
food protection.
Many wondered whether that might not be a
more effective way of taking the country forward.
But then how many businessmen actually use
their own money to start business? And are the numbers of jobs created worth the
number of crores from public money in the banks?
Also does industry really run on its own?
The answer is a big NO, as evident from the
enunciations of banking heavyweights from the private sector, the head honchos
of the private banks who consider themselves a cut above nationalized banks and
of SEBI, the bastion of those with investable surpluses.
On May 3rd, 2013, the Reserve
Bank of India announced a cut in the repo rate, no doubt hoping to spark of a
revival in the flagging economy.
But from SEBI and the private banks, there
was a loud NIX.
The SEBI chairman wanted post office rates
and statutory liquid ratios to come down first.
The CEO,HDFC wanted liquidity to improve
with government spending and FII inflows before his bank could do anything.
The Citibank CEO wanted more government,
public and private sector spending to happen with improved liquidity first.
And the CEO, ICICI bank said that deposit
rates would not come down unless the deposit growth rates and seasonal demand
improves.
What does all this mean? That banks and industrialists need constant bottle feeds of government assistance, even as
they begrudge the poorest of the poor some food, while they indulge in their world
class luxury brands.
Perhaps we’ll reach the Top Ten Table only when we learn
to carry all with us.
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