With Chidambaram back at North Block, Sivaganga turns bankers' hub again
( collected from the newspaper Economic times )
27 AUG, 2012, 05.49AM IST, SANGITA MEHTA,ET BUREAU
MUMBAI: The heart of India's public sector banking is just moving back to southern India from the East. For state-owned bankers, a non-industrial district renowned for palatial homes and delicious cuisine has become a pilgrim centre yet again after a three-year hiatus.
Sivaganga, the home district of finance minister P Chidambaram, has once again become the hub of activity for public sector banks, instead of West Bengal's Murshidabad, the erstwhile favourite at the time of Pranab Mukherjee, the current President of India and former finance minister.
In less than a month of Chidambaram taking charge of the ministry, bankers have lined up four events to be launched by him in the district, including the inauguration of a branch of Bank of Maharashtra, whose mission is to "steadily to spread its business operations all over Maharashtra and as opportunity allows, outside that area."
Public sector employees, who are at the mercy of politicians and bureaucrats for survival and career growth attempt to please their bosses in many ways, including investing in their parliamentary constituencies irrespective of whether business conditions justify. Railway ministers set up coach factories in their home towns and civil aviation ministers push for aviationrelated services to their region.
"One can't fault any minister or member of Parliament for nursing his constituency," said K Cherien Verghese, former chairman of Union Bank of India. "It is up to the professional management to gauge the potential of any venture to launch any initiative in a given area."
Apart from inaugurating the Bank of Maharashtra branch on Saturday, Chidambaram also flagged off the Rural Training Centre at Amaravathipudur, Karaikudi near Sivaganga. Bankers say that many more events such as these may be done in coming months. The southern district that's buzzing now was orphaned by staterun banks the moment Chidambaram lost his portfolio and moved to the home ministry. The action then shifted to Murshidabad, Mukherjee's home district.
Jangipur, a town of 18 lakh and an economy driven by wages from beedirolling, was in the thick of banking action till recently, with more than 23 bank branches getting inaugurated since late 2008
More bank branches to be opened in minority areas: Chidambaram
Posted on Aug 26, 2012 at 05:20am IST
Sivaganga: Finance Minister P Chidambaram on Saturday said more branches of nationalised banks would be opened this year in areas where the minority population is significant so that they have access to banking service and various facilities under government schemes.
Declaring open the Bank of Maharastra's branch and ATM at Rajagambeeram in this district, he said in 2011 alone 1,023 bank branches were opened in 121 districts where the minority population is significant.
Chidambaram said the UPA government was responsible for ensuring that banking services reached the common man. "Now we want to spread the message that like freedom of speech and freedom to write, banking service was also a right which people should seek," he said.
He said Rs 13 lakh crore was in circulation in the country and it is too much of money which should be deposited in banks so that it is invested and used in the development of sectors like industries education.
Chidambaram, who represents Sivaganga in Lok Sabha, said during his current tenure, in the last 39 months, banks had opened 72 branches in his constituency and wondered whether any other MP would have such an achievement.
He said Bank of Maharashtra had a business turnover of Rs 1,39,508 crore and 1,624 branches. The bank had opened its branch here heeding to the long pending request of the people.
Bank of Maharashtra Chairman and Managing Director Rajendra Singh said the bank planned to provide toilet facilities and fans in all government schools in the towns where it had branches as part of corporate social responsibility programme.
Reserve Bank of India voices concern over 'too much' borrowings
CHENNAI: The Reserve Bank today voiced concern over "too much" borrowing by the government, highinflation and fiscal deficit.
"Our government is borrowing too much and our country is borrowing too much. Our inflation is one of the highest among the emerging economies. We have the highest fiscal deficit, current account deficit and inflation," Reserve Bank Deputy Governor K C Chakrabarty said at a conference here.
However, he said the "good news is that everybody is aware of the problems. Nobody is saying there is no problem. People say they will take action."
Stating that India had imported USD 60 billion worth of gold last year, he said, "if we had not imported this much gold, our current account deficit would have become surplus."
"We need to work hard at least for the next 20 years and we need to grow by around 10 per cent. If we have to use this crisis as an opportunity, we must do all the right things...," he said, speaking at a conference here.
"Believe me, job is not a problem if we can educate our people. But if we are not able to educate the people, given the employment opportunities, the demographic dividend will become demographic disaster and that is also one of the dangers we must look into", he said.
India's strengths were its younger population and a financial system that was not that complex, among others, he said, adding "We need to consolidate on our strengths. We need to keep the banking sector strong".
http://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-voices-concern-over-too-much-borrowings/articleshow/15836305.cms
CHENNAI: The Reserve Bank today voiced concern over "too much" borrowing by the government, highinflation and fiscal deficit.
"Our government is borrowing too much and our country is borrowing too much. Our inflation is one of the highest among the emerging economies. We have the highest fiscal deficit, current account deficit and inflation," Reserve Bank Deputy Governor K C Chakrabarty said at a conference here.
However, he said the "good news is that everybody is aware of the problems. Nobody is saying there is no problem. People say they will take action."
Stating that India had imported USD 60 billion worth of gold last year, he said, "if we had not imported this much gold, our current account deficit would have become surplus."
"We need to work hard at least for the next 20 years and we need to grow by around 10 per cent. If we have to use this crisis as an opportunity, we must do all the right things...," he said, speaking at a conference here.
"Believe me, job is not a problem if we can educate our people. But if we are not able to educate the people, given the employment opportunities, the demographic dividend will become demographic disaster and that is also one of the dangers we must look into", he said.
India's strengths were its younger population and a financial system that was not that complex, among others, he said, adding "We need to consolidate on our strengths. We need to keep the banking sector strong".
"Our government is borrowing too much and our country is borrowing too much. Our inflation is one of the highest among the emerging economies. We have the highest fiscal deficit, current account deficit and inflation," Reserve Bank Deputy Governor K C Chakrabarty said at a conference here.
However, he said the "good news is that everybody is aware of the problems. Nobody is saying there is no problem. People say they will take action."
Stating that India had imported USD 60 billion worth of gold last year, he said, "if we had not imported this much gold, our current account deficit would have become surplus."
"We need to work hard at least for the next 20 years and we need to grow by around 10 per cent. If we have to use this crisis as an opportunity, we must do all the right things...," he said, speaking at a conference here.
"Believe me, job is not a problem if we can educate our people. But if we are not able to educate the people, given the employment opportunities, the demographic dividend will become demographic disaster and that is also one of the dangers we must look into", he said.
India's strengths were its younger population and a financial system that was not that complex, among others, he said, adding "We need to consolidate on our strengths. We need to keep the banking sector strong".
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