From Lehman To Demonetization

353 Pages·1934·1.68 MB·English

by  Tamal Bandyopadhyay

TAMAL BANDYOPADHYAY

FROM LEHMAN TO DEMONETIZATION
A Decade of Disruptions, Reforms and Misadventures
Foreword by K.V. Kamath
PENGUIN BOOKS
Contents
Foreword
Introduction
PART I: A TURBULENT DECADE
The Lehman Collapse Days
HOW A YOUNG FINANCE PROFESSIONAL’S WORLD COLLAPSED
HOW THE RBI FENCED INDIAN BANKS FROM THE TURMOIL
LIQUIDITY CRISIS: WHERE HAS ALL THE MONEY GONE?
A DESPERATE RBI NEEDS TO BE CREATIVE IN CRISIS MANAGEMENT
IS THE CENTRAL BANK AT RISK OF LOSING ITS CLOTHES?
WE SHOULD SEND FLOWERS TO INDIAN BANKERS
Microfinance: To Hell and Back
FINANCIAL INCLUSION AND MY DRIVER, RAJU
MFIS NEED TO ALTER BUSINESS MODEL
HOW CAN WE SAVE THE MICROFINANCE INDUSTRY
WE NEED MFIS TILL BANKS GET READY TO SERVE THE POOR
MICROFINANCE: TO HELL AND BACK
THE LIFE, DEATH AND RESURRECTION OF INDIAN MICROFINANCE
INDIAN MICROFINANCE INSTITUTIONS HAVE JUST BUSTED A MYTH
THE NEW HOTSPOTS OF INDIAN MICROFINANCE
Public-sector Banks: Fall from Grace
THE SAAS–BAHU SYNDROME IN INDIAN BANKING
GOVERNMENT, THE BIGGEST RISK FACTOR FOR PUBLIC-SECTOR BANKS
ARE PSU BANK HEADS FEUDAL LORDS?
HOW THE GOVERNMENT CHOOSES PSU BANK CEOS
WHY WE NEED PSU BANK REFORMS
GOVERNMENT TO GAIN THE MOST FROM PSU BANK REFORMS
BANKING WITH A BROOM, PSU STYLE
Banking Reforms or Lack of It
BANKS FOR BREAKFAST, LUNCH, DINNER
WHY THE RBI SHOULD KILL THE BANK RATE
BANK BPLR: MAY IT REST IN PEACE
LIFE AFTER SAVINGS BANK DEREGULATION
BHARATIYA MAHILA BANK: UPA’S RS 10-BILLION MISADVENTURE
DO WE NEED MUDRA BANK?
THE GREAT INDIAN FINANCIAL INCLUSION CIRCUS
A PAPER TIGER CALLED BANKS BOARD BUREAU
CAN ONLY LOVE FOR OUR POSTMAN ENSURE SUCCESS FOR INDIA POST
PAYMENTS BANK?
CHANGE IS IN THE AIR FOR INDIAN BANKING
DO WE NEED A RELIANCE JIO IN INDIAN BANKING?
Bad, Bad, Bad Loans
LOAN RECAST: THE RESERVE BANK’S BIGGEST GAMBLE
ARE INDIAN BANKS HEADING FOR A CRISIS?
ARE BANKS IN A DENIAL MODE?
HOW MANY BANKS ARE SWIMMING NAKED?
BANKS ARE STRESSED: WHAT DO WE DO?
FOUR STATE-OWNED BANKS TO WATCH OUT FOR
NPA ORDINANCE: THE LAST ACT OF BAD LOAN RESOLUTION? (PART I)
NPA ORDINANCE: THE LAST ACT OF BAD LOAN RESOLUTION? (PART II)
FINALLY, THE RBI CRACKS THE DA VINCI CODE OF INDIAN BANKING
LIFE AFTER KINGFISHER FOR INDIAN BANKS
WHAT’S NEXT, MR VIJAY MALLYA?
AMTEK AUTO: BANKS TO BLAME FOR BLOATED DEBT (PART I)
BANKS AND THE BLOATED DEBT OF AMTEK AUTO (PART II)
Corruption: The Soft Underbelly of Indian Banking
THE BANKER–BROKER NEXUS
THE MURKY WORLD OF ‘SUITCASE BANKING’
HOW TO DEAL WITH CORRUPT BOSSES OF STATE-OWNED BANKS (PART I)
HOW TO DEAL WITH CORRUPT BOSSES OF STATE-OWNED BANKS (PART II)
HOW CORRUPT ARE OUR BANKERS?
The Conflict between the RBI and the Finance Ministry
THE RESERVE BANK OF INDIA NEEDS NEW CLOTHES
SHOULD FINMIN BE THE SUPER REGULATOR?
THE UNTOLD STORY BEHIND THE QUICK-FIX ORDINANCE
EMPEROR, LOOK AT YOUR OWN CLOTHES
FINANCE MINISTRY, RESERVE BANK AND AUTONOMY
THE NEW PHASE OF THE RBI–FINANCE MINISTRY CONFLICT
Demonetization: A Boon or a Bane?
THE WHYS AND HOWS OF DEMONETIZATION
AN UPHILL ROAD FOR MFIS
FIFTY DAYS IN THE LIFE OF A BANK’S BRANCH MANAGER
PART II: THE SEMINAL LEADERS
The People
DEEPAK PAREKH
K.V. KAMATH
CHANDA KOCHHAR
ARUNDHATI BHATTACHARYA
ADITYA PURI
PRAMIT JHAVERI
SHIKHA SHARMA
OM PRAKASH BHATT
RAGHURAM RAJAN
U.K. SINHA
VIRAL V. ACHARYA
JASPAL BINDRA
V. VAIDYANATHAN
LEO PURI
BROOKS ENTWISTLE
Footnotes
HOW TO DEAL WITH CORRUPT BOSSES OF STATE-OWNED BANKS (PART I)
HOW CORRUPT ARE OUR BANKERS?
Epilogue
List of Abbreviations
Acknowledgements
Follow Penguin
Copyright
Advance Praise for the Book
‘Tamal Bandyopadhyay is one of the foremost thoughtful journalists writing on
Indian finance today. He has the knack of going beyond the obvious and asking
the right questions. In this collection of articles and essays, Tamal takes the
reader through a tumultuous decade, offering a ringside view of major
developments in Indian banking and insights into the thinking of the major
protagonists. It will be of value for anyone interested in India’s financial
development’—Raghuram Rajan, professor of finance, University of Chicago,
and former governor, RBI
‘Many of us are aware of financial developments, but to understand why they
happen and what the implications are, one must read Tamal’s columns. He
brings in a rare insight into every policy development and explains things in a
very lucid way, backed by sufficient data. Most importantly, he does not take
any position, but leaves it to his readers to conclude whether it is good, bad or
ugly. A rare quality for a columnist’—Deepak Parekh, chairman, HDFC Ltd
‘An outstanding compilation of essays on contemporary issues in money and
finance in India, reflecting Tamal’s amazing grasp of the interplay of issues,
ideologies, individuals and institutions—indeed, a collector’s item’—Y.V.
Reddy, former governor, RBI, and chairman of the fourteenth finance
commission
‘Authoritative and lucid, Tamal’s columns have made him one of the most
trusted and influential financial journalists of the country. Even the very
discerning turn to his writings for guidance’—D. Subbarao, former governor,
RBI
‘An exceptional book on the events that unfolded in the last decade in Indian
finance by one of its keenest observers. Macro in its ambition and yet adequately
micro in its detailing, a must-read for every student, practitioner and
policymaker in, or interested in, India’—Viral Acharya, deputy governor, RBI
‘The book touches upon events right from the global financial crisis to the latest
efforts of financial inclusion and demonetization in India’— Arundhati
Bhattacharya, former chairman, SBI
Praise for Bandhan: the Making of a Bank
‘Tamal Bandyopadhyay is a gifted storyteller who combines the sharp vision of
a finance expert with a journalist’s skill for observation and narration’—Kaushik
Basu, former senior vice president, World Bank
‘The transformation of Bandhan, a microfinance company, into a universal bank
is as unique as the transition of Tamal from a business journalist to an author. As
governor of the Reserve Bank, I had grown to respect Tamal for his passion for
financial journalism, his enormous talent and endearing professional integrity.
He combines all those attributes to tell the remarkable behind-the-scenes story of
what it takes to overcome the challenges of last-mile connectivity in Indian
finance’—D. Subbarao, former governor, RBI
‘As an acclaimed journalist with decades of experience in financial markets,
Tamal brings an intensity along with sincerity and integrity to his writing. In this
book, he has woven a colourful canvas which draws the attention of the reader
and makes him read, think and deliberate’— U.K. Sinha, former chairman, SEBI
‘This is a fascinating story, deserving to be chronicled. And who better to do so
than Tamal. It is a very revealing study—a must-read for those even remotely
interested in this sector. The story is narrated by a person as well informed as a
hands-on banker and has all the attendant nuances’—Vinod Rai, former
comptroller and auditor general of India
‘Bandhan, India’s youngest bank, has a deep and long history behind it.
First of its kind, the book takes the reader through India’s journey towards
financial inclusion. Tamal brilliantly captures a story of hope and what it takes to
lift millions of Indians out of poverty’—Deepak Parekh, chairman, HDFC Ltd
‘Replete with fascinating anecdotes and containing perceptive pen portraits of
some of the pioneers in the industry, the book makes for compulsive reading for