When a conglomerate embarks on a restructuring exercise, it’s big news for business newspapers. A central bank doing so doesn’t attract much attention as it has no bearing on its fight against inflation or, say, foreign exchange management. Taking advantage of that, the Reserve Bank of India (RBI) is restructuring itself without the distracting noise of newspaper headlines.
Alok Prasad, chief executive officer of Microfinance Institutions Network (MFIN), a lobby group for the Indian microfinance industry that recently got the status of a self-regulatory organization from the banking regulator, says “we did not waste a good crisis”, on the fourth anniversary of the microfinance crisis that originated in Andhra Pradesh. This statement is generally attributed to Rahm Emanuel, a former White House chief of staff, in response to the Wall Street meltdown, but actually comes from a comment made by Niccolo Machiavelli, a well-known Italian political thinker of the 15th century, who wrote, “Never waste the opportunity offered by a good crisis.” “That’s exactly what the microfinance industry has done.
Chairman and managing director (CMD) of Canara Bank, R.K. Dubey, and that of Oriental Bank of Commerce, S.
Young analysts at Crisil Ltd, a Standard and Poor’s (S&P) unit, take immense pride in asking the top management of promoter-driven companies about their succession plans. I remember many years ago how Crisil’s rating analysts had grilled the promoters of a large automobile company on their succession plans. Crisil’s rating methodology puts huge emphasis on two critical aspects: the level of governance followed by corporations and the succession plans of the promoter.
Reserve Bank of India (RBI) governor Raghuram Rajan has successfully taken away the surprise element from the central bank’s monetary policy. As widely expected, the fourth bi-monthly monetary policy, on Tuesday, did not announce any cut in the policy rate as well as banks’ cash reserve ratio (CRR) or the portion of the deposits that commercial banks need to keep with RBI. But the central bank’s concerns over high inflation seem to be more than what many would have anticipated.