Thursday, September 30, 2010
In 1978, I read an internationally popular book titled "Roots" by Alex Hailey. It delves deep into the black population of USA and their origins. According to the author, who himself a black, he probed for twelve generations to know the history. These were the people from African jungles, caught and taken to USA as slaves. The book is very interesting to know the transformation of this tribe for centuries. And what we witness today in USA is that the White House is occupied by an Afro-American - Mr. Barack Obama as its President.
At least our generation of Karanams (also called Telugu/Rao Patnaiks) belong to cross border areas of Andhra-Orissa-West Bengal. My home town is Kotabommali in Srikakulam Dist, the last / northern most adjoining Orissa State. I have this fact recorded in all my certificates, passport, etc. My birth place again is Salur in the same district. My mother grew up in Kharagpur, in West Bengal State. When my father joined the State Government (then Madras Province), he worked in Madras (now Chennai) in early fifties. Later, when the new AP state was formed in 1956, he came to Kurnool-Hyderabad to work for long years in the Medical & Health Department. I remember well that he was Secretary of the AP Sistakaranam Association in Hyderabad for long years.
I grew up in Hyderabad, since 1959 when I joined 4th standard (at the age of 7 years) in Govt High School, Malakpet. I also joined my first job in Andhra Bank, Central Office, Hyderabad in April 1971 (at eighteen and half years) and later moved all over in the State, Mumbai, Bangalore, Manipal and so on. The present generation of our community are not fully aware of our roots. They also do not seem to be interested with the kind of exposure to modern world, technology, society, life, etc. Wikipedia page (above) gives a glimpse of Karanams.
MFIs are proliferating. The recent developments in India only indicate that while on one side there is focus on Financial Inclusion and the banking system has been endeavouring to bridge the gap, on the other side, these MFIs are spreading fast and wide. It is appreciable that we need to have a level playing field in the industry, but not at the cost of charging usurious interest rates ranging any where between 24 to 36 per cent on the loans to rural poor and women. It is time that GOI and RBI speed up the enactment of the proposed law to regulate the MFIs.
Tuesday, September 28, 2010
Interesting! Forbes India in its October 0, 2010 covers the topic "Greed is Back" - the spirit of Gordon Gekko refuses to be exorcised from Wall Street or Hollywood. It is all about Gordon Gekko, the icon of greed, who returns to screens after 23 years. Perfect timing, as Wall Street shrugs off lessons from the crisis and goes back to its old ways. The three page article also covers eight Faces of Greed - Michael Milken, Jeffery Skilling, Ivan Boesky, Bernard Ebbers, John Meriwether, Nick Leeson, Bernard Madoff and our own Indian - Harshad Mehta.
Much more interesting is the next article in the issue titled "How Greed Works" by Vikram Sheel Kumar. Worth reading to avoid GREED.
Monday, September 27, 2010
In the last five years or so, Mobile Technology is spreading very fast and penetrating into rural India too. At a time when the GOI and RBI are focussing on taking the banking to grass roots level under Financial Inclusion, it is apt to choose this medium. I may call it Two Birds in One Shot.
Good source of information on Social Entrepreneurship in India.
The new word coined here is interesting "Sociopreneurship". I am keen on attending. It should help in my research work too.
Interesting. That the Secretary of Financial Services issued a statement about Financial Inclusion, Inclusive Growth and related issues today while this position was being paid attention and focussed by RBI and the banking system for at least last five-six years. Technology has no doubt been of greatest use to leverage the rural banking in this century. Is it not the responsibility or failure of the GOI that even after sixty three years of independence and eleven five year plans (with two major bank nationalisations), the country has only 40% of the population with bank accounts. It is time that RBI realises the real problem and offer remedies to retrieve from the position.
Sunday, September 26, 2010
Richard Branson is Chairman of the Virgin Group. He was born in 1950 and educated at Stowe School, where he set up Student magazine when he was sixteen years old. In 1970 he founded Virgin asa mail order record retailer, and shortly afterwards opened a record shop on London's Oxfort Street. Two years later, the company built a recording studio Virgin Records went on to become the largest independent record company in the world.
Since then theVirgin Group has expanded to encompass around three hundred companies in over thirty countries. Richard is the only person in the world to have built eight billion-dollar companies from scratch in eight different sectors. Through the Virgin Group's charitable arm, Unite, he is working to develop new approaches to social and environmental problems.
Richard's autobiography, Losing My Virginity, and his books on business, Screw it, Let's Do it and Business Stripped Bare, are all international bestsellers. He lives on Necker Island in the British Virgin Islands and is married with two grown-up children. (extract from his book Losing My Virginity - Cover Page)
Thursday, September 23, 2010
RBI releasing the latest report 'A Profile of Banks 2009-10' is commendable. We get the core information of each bank, and under classification as Foreign Banks, Public, Private and SBI categories is helpful for researchers as also individual bank's policy makers to know the industry information, and market shares to face competition.
Wednesday, September 22, 2010
I gave a search for Microfinance in India on the website of RBI and the above page popped up. Although, it may give some idea, I am not too sure whether an integrated picture (latest) could be arrived at by going through all the links. There are thousands of MFIs operating today and they are yet to be regulated by RBI or NABARD. In the mean time MFIs are making merry with high interest rates charged for the loans from the rural, uneducated poor women customers.
It is not mere credit or finance that is happening or needed by the people in the rural areas of our country. They also have a high expectation from the State. They should also be availing of the benefits accruing to their counter-part elite bank customers like Technology, Credit Rating, MFI Indexing, Securitisation, etc., that is taking place of late for MFIs. Millennium Development Goals of UN also have promised to deliver something concrete towards welfare economy including social and financial aspects.
One of the agencies working globally on MFIs is CGAP - Consultative Group to Assist the Poor. Not only in India, that MF is needed and happening in a big way or Bangladesh. Almost all countries have realised by the year 2000, that MF is an important tool to contain poverty and extend loans to all those who are eligible.
This organisation is very special. ICRIER stands for Indian Council for Research on International Economic Relations, located in New Delhi and headed by Dr (Mrs) Isher Judge Ahluwalia. She visited our TAPMI Campus on November 03, 2010 alongwith her husband, Dr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission. She delivered Key Note Address at our Seminar on Banking.
ICRIER has a battery of Economists on its rolls for conducting research. Their website is www.icrier.org. They have associations with many other research organisations in the country and abroad given in a web page as Related Links. The reports of this organisation are highly authentic, informative and useful for any researcher.
Tuesday, September 21, 2010
Rajesh - Amitabh - Rekha - Asrani - AK Hangal - Om Shivpuri - Raza Murad (introduction) movie.
When I took the responsibility of Chairman-Branding, Promotion, etc Committee of Faculty Members, I did not know where to begin. By then, in May 2009 the rankings were announced by Business World Magazine and TAPMI did not participate; for reasons best known to any one. It pained me, particularly after having spent nearly three years in a different B-School in Bangalore and watching about accreditations and rankings!
Of course, to jump in to the fray, we need manpower, time, patience and most importantly, complete information about the Institute's manpower, finances, infrastructure, faculty/ staff / students' achievements, admissions and placements data, research outputs, visitors' on the campus, oh....... where is it available!!
With the support of some administrative staff (most of them are familiar to me) and faculty colleagues, we did submit almost all the following surveys. Most of the times, some or other data used to be either missing or incomplete. In order to catch up with the deadlines, against all constraints and hurdles also of course, the teachings/administrative responsibilities. The results, were mixed and thus putting further pressure on us. The only satisfaction was that we could retrieve from the derailment for about previous three - four years.
Come 2010, we got some realisation, but the constraints of manpower and MIS continued despite best of efforts. Some are not so keen on rankings while some have wild reservations; but the market does value these rankings, particularly the Admissions-seekers as also the Recruiters. We can not go on brushing aside about regulators and ranking agencies. These have a heavy bearings on our visibility and marketability.
Interestingly, as if the existing agencies or magazines are not enough, some more have entered the race. As it is nobody knows as to how many types and numbers of B-Schools we have in India (reputed or registered). In the last nine months from January 2010, I have come across nearly 25 agencies seeking information from us for B-School Rankings Surveys but only one agency (Career 360) visited our campus and took physically verified data. To list all these agencies : (1) The Human Factor (2) The Sunday Indian (3) Careers-360 (4) http://www.pagalguy.com/ (5) http://www.eduniversal.com/; (6) Business World also for B-School Directory (7) Business Today (8) Competition Success Review (9) Dun & Bradstreet (10) http://www.mbauniverse.com/; (11) Business India (12) The Week (13) All India Management Association's Indian Management also for B-Schools Directory (14) Outlook India (15) CNBC TV 18 (16) Dalal Street Investment Journal for B-School Directory (17) DNA Daily News & Analysis (18) Dainik Bhaskar Lakshya (19) AIMS International for Awards (20) Dewang Mehta Business Schools Annual Awards (21) The New Indian Express for South India's Best B-Schools (22) Silicon India B-School Survey (23) http://www.mbapursuit.com/; (24) Zee Business B-School Rankings.
Of course, each one of these magazines have some or other research associates and methodology. Most of them send a questionnaire to be filled up and submit alongwith documentary evidence including brochures, placement letters, invitation cards for events, etc. A few follow the perception methods of study. Their weightages also differ. The sensitive issue here is these agencies / magazines seeking rather pressurising for release of advertisements in these special issues. One view is that while inserting advertisements both the parties are favouring each other; but it should not be influencing the ranking process. That is the biggest dilemma.
Rating Agencies have appeared on the Indian scene in 1988 beginning with CRISIL. Then came ICRA, CARE, FITCH (formerly Duff & Phelps). Of course, now we have some more like SMERA, CIBIL, and Bric, besides of course foreign players like Standard & Poor, Dun & Bradstreet, Moody's, etc. There are consulting firms like Ernst & Young, PriceWaterhouseCoopers, etc. Each of these players can be carrying on their business in their own ways. The market and investors can not be taken for granted and thanks to reforms, SEBI now regulates all these Credit Rating Agencies. It appears similar regulatory mechanism is essential to oversee and monitor the above B-School Ranking Surveys. Else, the gullible student and sincere recruiter can be taken for a ride in the Wonderland of Indian Rankers of B-Schools.
Saturday, September 18, 2010
Blue Ocean Strategy world-wide
Today (18th September 2010), it was an entirely a new and different activity at TAPMI. India Blue Ocean Strategy Research Centre TAPMI was launched at 10 am in White House Hall of The Hotel Capitol, Bangalore by none other than the noted film maker from India, Mr Shekhar Kapur. He is a Chartered Accountant by training but after a brief period of practice as an accountant and Management consultant in UK for some years, he entered the field as a Model, Actor and Director. He directed prize winning popular films like Elizabeth, Masoom, Mr India, Joshilay and currently working on Paani. It was a very appropriate selection that he would launch the new centre.
The other prominent personalities at the inaugural session were Dr KRS Murthy (former director of IIM-B), currently Chairman of ISEC, Bangalore and himself a long term Professor of strategy. Mr Anand Sudarsan,. MD of Manipal Education, Bangalore was the Key Note Speaker. Dr Robert Bong and Dr Saji Gopinath, Director of TAPMI also addressed the gathering. Dr Bong dealt with the automobile industry in India for a few decades ending with introduction of Nano Car by Tatas as a recent example in India. In the following Technical Sessions during the day, Mr Peter Tan, Mr S Siva Kumar (e-Choupal fame of ITC), Mr Dileep Ranjekar of Azim Premji Foundation shared their own experiences with the strategy in India. It was a memorable event for all the TAPMIans.
It is learnt that Mr Vineet Nayar of HCL also propogated the Blue Ocean Strategy in his company and authored a book titled Employees First. More such instances can be had from the link given above.
Wednesday, September 15, 2010
It is better that Chiranjeevi seriously considers his cine-career as he is re-entering films. On the screen, you can fool the gullible viewers with all sorts of dialogues, actions, dashing scenes, and miracles. It is after all entertainment where all of us get into believe the illusions.
AP is facing the worst times or crises, when the twenty-first century world is moving fast. It has half-a-dozen post-power aspiring politicians - Naidu of TDP, KCR of TRS, Jagan of Congress, Chiru of PRP, and so on. Democracy does not mean that every one aiming for a Gaddi should disrupt public life every now and then.
Jagan is living in the dream-world to capture power (as a legal heir to his father Dr YSR, who had to wait three decades or so to become a CM). Over-ambitious Chiranjeevi after earning huge money and name in cinemas, now suddenly takes to streets. Should the Janata believe these tricksters? KCR took to the four decade old (buried) Telangana issue for his personal reasons. How much of waste of time, money, energy, resources, and chaos and confusion among the youth? God save AP.
My Paa the Best. I have been an ardent fan of Amitabh Bachchan for past four decades. Now, at 68 he is still going strong and steady. Congratulations, Amit ji, Jaya, Abhishek and Aishwarya.
Oh! As I said earlier, this site IBEF is so much up to date and informative. Today's citizen, student, researcher, policy maker and every one for that matter is going net-savvy. In a vast democratic country like ours, there have been many developmental changes have been taking place. But the media primarily focusses on spicy, flashy, sensational news to capture the attention of the viewer/reader.
Here I see a nice table, IBEF provides information on IT Parks, Green Power, Taxation, Cotton Exports policies of the Government. Very interesting and encouraging too. I recommend that we should be viewing this site on a regular basis to get such good news about India.
At a time when RBI and GOI is scratching their heads as to the role and regulation of MFIs as NBFCs in the country, there have been newer developments. Only a month back the largest MFI from Andhra Pradesh, SKS Finance (Swayam Krishi Sangham) floated by an US-returned Dr Vikram Akula went public with a huge Rs. 1,600 crore IPO. It may take some time for these developments to settle down as part of our Indian Financial System.
The news that Sa-Dhan would be opening more branches with regional chapters in different States of India is interesting. Let us watch and wait.
Unstoppable Indians. Wonderful collection or compilation by NDTV uploaded in the www.ibef.org site. These clippings are not available any where else separately. Each story is exciting and interesting that these unheard heroes and heroines are contributing for improving the quality of life of their fellow Indians. Worth a collection indeed. Cick on each of these ten stories and listen carefully about the contribution of these special groups of people.
The list is 1. The Umang Movement 2. linguistics @ small price 3. The barefoot College in Tilonia, Ajmer 4. Rise of Dalit Businessmen 5. The Gulabi Gang 6. Inspiring Micro Enterpreneurs 7. The 'Khabar Lahariya' story 8. The farmers' story 9. The people's budget initiative 10. Destination : Ability Unlimited. Very fulfilling if you go on listening each of these stories. Mera Bhaarat Mahaan. Jai Ho. Maa Tuzhe Salaam.
When I was very young, at 19 years of age, fresh from college to join banking service, the movie of Devanand and Zeenath Aman titled "Hare Rama Hare Krishna" was released and was grand hit. We even today relish those scenes and songs. It was hardly a decade that Goa was witnessing Hippie culture and simultaneously Hare Krishna cult was also spreading in India thanks to Sri Prabhupada.
Tuesday, September 14, 2010
Dear Shri Shekaran,Your article in BL on IPOs compared to Circus is very interesting.Best wishes,Prof Chowdari PrasadTAPMI, Manipal-576104Off: 91-820-2701045Mob:09242124642New:09482549472
Indian Financial System (including Banks and Non-Banks) is considered to be robust; may be due to its conservative approach. But some times some public / private banks or NBFCs (later, it bacame the most hot four letter word) have been aggressive and tasted success or vanished from the scene. At least in the post reforms era, while the Public Sector Banks were streamlining themselves to conform to the RBI guidelines on Prudential Norms, etc., an excellent opportunity was grabbed by NBFCs to mushroo and squeeze the economy. Very soon, of course the saturation point emerged with CR Bhansali's scam surfacing. RBI and Govt got alerted and asked Vasudev and Committee to examine the NBFCs industry to caution the investing public. The euphora came down and the industry checked as also the banking system almost stabilised.
And now, we are witnessing the mushrooming of MFIs. One of them has already gone public and the response was amazing. RBI is opening discussion as to how to keep a watch on their activities and collaborate with the GOI and SEBI to check MFIs. A bill dealing with all aspects of MFIs in India is pending with the Babus and Parliamentarians. We wish they act fast before another major problem erups in the finance world.
This is certainly not Innovative or Doorstep Banking! Very unfortunate that even educated people living in metro cities get duped and become victims to such pseudo-bankers! I wish, I had such a magic pen.
India Brand Equity Foundation (www.ibef.org) has been one of my favourite sites, which I visit almost every day. It is a highly professional and informative site with all about the developmental news on India. CII and Government of India are collaborating to showcase India as a Brand that we all Indians should be proud of. The site disseminates several reports and clippings that are handy and authentic.
And a news like that India would be achieving 9.5 per cent growth rate in coming three to five years is exciting too.
Monday, September 13, 2010
The other noted Indian personalities in this list include Ratan Tata at no. 12, Ram Charan at 13, S. Kris Gopalakrishnan at 15, Vijay Govindarajan at 24, and Rakesh Khurana at 44. We all Indians, Management Teachers and Graduate Students and Corporate World should be happy that these six Indians have made the country great.
AP witnessed separate State agitations in 1969-70 both in Telangana and Seema Andhra areas affecting the economy, education, law and order and other aspects. Somehow, Centre could purchase peace by offering several projects to Hyderabad/Telangana as also political favours to the leaders who became Ministers, Chief Ministers, Central Ministers or Governors or Heads of several Corporations. The list includes both from Andhra (includes Rayalaseema) and Telangana. And now, after nearly forty years, democracy seems to have given scope for several proliferation of self-styled leaders from all backgrounds (including Cinema) championing the cause(s) of people. I see every move of every one in this set up as power hungry but not working for the society or people.
Odaarpu Yatra can not go on for years. It need not be with all fan fare of spending huge public money installing statues and celebrations and speeches. All this appears like show of strength. Why this type of Yatras were not taken up when thousands of farmers committed suicides when monsoon or crops failed? Why such yatras were not undertaken when cyclones or floods affected the assets, lives and economy? AP seems to be passing through power crisis. There have been enough Ministers at State or Centre and Chief Ministers from all the three regions. Starting from B Ramakrishna Rao (T), PV Narasimha Rao (T), T.Anjaiah (T), Marri Chenna Reddy (T), Jalagam Vengal Rao (T) - 5 from Telangana; Sanjeevaiah (R), Neelam Sanjiva Reddy (R), N Janardhana Reddy (R), N Chandra Babu Naidu (R) and YS Rajasekhara Reddy (R) - 5 from Rayalaseema; and Kasu Brahmananda Reddy (A), Bhuvanam Venkatram (A), Nadendla Bhaskara Rao (A), NT Rama Rao (A) 4 from Andhra to recall the CMs.
And then, there have been MLAs, MLCs, MPs (in Lok Sabha and Rajya Sabha as also Ministers) and Governors from all these regions ending with PV as Prime Minister and Sanjiva Reddy as President. All these people had adequate opportunity to serve the people and do justice thus rendering first class service to people towards development.In May, Jagan Mohan Reddy set off for the second leg of his Odarpu Yatra. In troubled Telangana. But pro-Telangana state protesters were in no mood to let the Congress MP's yatra continue in view of his united Andhra Pradesh stance. AP witnessed separate State agitations in 1969-70 both in Telangana and Seema Andhra areas affecting the economy, education, law and order and other aspects. Somehow, Centre could purchase peace by offering several projects to Hyderabad/Telangana as also political favours to the leaders who became Ministers, Chief Ministers, Central Ministers or Governors or Heads of several Corporations. The list includes both from Andhra (includes Rayalaseema) and Telangana. And now, after nearly forty years, democracy seems to have given scope for several proliferation of self-styled leaders from all backgrounds (including Cinema) championing the cause(s) of people. I see every move of every one in this set up as power hungry but not working for the society or people. Odaarpu Yatra can not go on for years. It need not be with all fan fare of spending huge public money installing statues and celebrations and speeches. All this appears like show of strength. Why this type of Yatras were not taken up when thousands of farmers committed suicides when monsoon or crops failed? Why such yatras were not undertaken when cyclones or floods affected the assets, lives and economy?
It looks more of politics and power (with corruption) is the priority instead of development. Be it in AP or any other state. The Common Man is always the sufferer / victim.
There was a few days gap in my writing the blogs; because of holidays coupled with travelling as also some network problems at home. Besides, I was also engaged in teaching European Business Environment course at MCES, Manipal last week and today I had a half-day's lecture sessions at SIBM, Manipal on High Value Credit Proposals to 31 of the their Senior Credit Managers.
Referring to my stint in SBI at Central Office, Mumbai, I was discussing with the participants reg Harshad Mehta's Stock Market Scam and how it surfaced at SBI's Mumbai Main Branch. Also, came up for discussion was the manner in which a junior Official of the bank handled the securities sales / purchases and meddled with the ledger accounts, etc. Besides, the fact that the SBI share was zooming day by day from a mere Rs. 450 (Rs. 100 was the face value and had a premium of Rs. 160 those days and rarely traded or quoted) to nearly Rs. 19,000 in a matter of about six months between November 1991 and April 1992, when the scam hit the markets.
Well, life is like that.... with series of Brand related meetings and preparations for two other events (or three?) on 14th and 18th Sept., 2010. (More on it separately)
SBI is in news again for another development. Its share is quoting in the Stock Market at the highest in recent times, with the BSE Index too hitting the highest at over 19,000 since January 2008 downfall. My comments would follow in a day or two.
Wednesday, September 8, 2010
Tuesday, September 7, 2010
Monday, September 6, 2010
And then, in today's The Hindu Business Line, a full page coverage was given linking Agriculture and Technology with a mini-ad from Yes Bank. Earlier, I used to caution my banking students (at MBA level) to be in preparedness to work in social banking, rural banking or microfinance (if not priority sector lending) even if they are joining the new generation banks like ICICI Bank.
Read more: http://www.investorwords.com/4840/sweat_equity.html#ixzz0ykS4cm9h
Sunday, September 5, 2010
Thursday, September 2, 2010
I got into the task with the Course outline and search in Google. Initially, it was to be taught by Dr Devi Prasad Bedari but suddenly in came in my lap due to Dr Shijin leaving the Institute to Pondicherry University last month and Accounting Course having been shifted from him to me and me to Prof Lionel Aranha.
I scratched my head when it was proposed to be me to handle the course. Then, I downloaded some articles, ppts and research papers or reviews on Euro or EU or EU Courses in some Universities. I began with the course structure, introduced Indian Foreign Exchange scenario and then took up a new topic called Doing Business in India from my favourite website http://www.ibef.org/. There this pdf report of 274 pages is uploaded. Ernst & Young developed this report in early 2010 listing out all features required for a new entrant to business in India. If my 11 students understand this clearly, my half job is done. Thereafter, I would like to take them through Euro, EU, European Business Environment, etc in nest twenty plus sessions.
Time flies and not moves very fast. This popular film is dated 1989! That means, it is over twenty years back it was done and was a crazy attraction to the youth and middle aged of yester years. The heroine has faded but the hero is growing every year / day from strength to strength in his popularity, acting and so son.
Oh! This is another old and popular movie of yester years. Three heores and heroines of those days. Of course, actors like Amitabh are evergreen (earlier, Dev Anand was referred as...) with his character acting.
Trend and Progress of Banking in India, an annual feature is released by RBI during November of the year annually and we have it for 2009 too. This document throws up voluminous data for use by any bank, academician or researcher, if not a policy maker or an administrator. Only last week, RBI's latest Annual Report for 2009-2010 has been released with lots of financial data and performance.
And now, this publication primarily on branches of all commercial banks in India is too late. By now, RBI should have released 2010 data for branch banking. And this too, appears to be not speaking on foreign banks in India. I presume that the four non-schedule banks are the Local Area Banks while data on old and new private banks are referred as other Scheduled Commercial Banks. The nomenclature could be clearly spelt out to avoid confusion to the readers. One heartening information is that the banking system in India is serving 14,000 population per branch which is commendable.
In total number of branches, Uttar Pradesh (9,658), Maharashtra (7,551), Andhra Pradesh (6,520) and Tamil Nadu (5,890) lead the pack in that order. Similarly 7 SBI Group branches number to 16,062 out of a total of 79,735 (by a total of 171 SCBs). One more observation is that 32 Foreign Banks have merely 293 branches (of which 4 are in Semi urban and 4 more in rural areas). Bank of Baroda has the highest 46 branches abroad in 14 countries with maximum of 9 each in Fiji Islands and UK as also 8 in Mauritius. SBI has its presence in 19 countries with 37 branches while the next (third) is Bank of India with 23 branches in 11 countries. Finally, one last observation is that while 15 old private sector banks have 4,673 branches in comparison to 7 New Private Sector Banks having 4,204 branches with their presence in all the States/UTs.
Wednesday, September 1, 2010
It is very unfortunate that meritorious and needy students obtaining Educational Loans from the Public Sector Banks on concessional terms not coming back to honour their obligations and defaulting. Then, why blame businessmen and farmers whose fortunes are dictated by external factors and become defaulters of bank loans. Long years back, Government of India used to offer Merit Scholarships and Fee waivers or concessions to all the top ranking students to feilitate the pursue higher studies. Most of these used to be IITans, who after graduating, quietly leave the country and never look back. There was also a scheme of offering merit-based loans from Government for higher studies which could never be recovered.
But, when loans are obtained from Public Sector Banks, it is not fair for the cream of the society with merit turning to be Non Performing Assets. Such irresponsible conduct of the borrowing student community is untenable. This would not only have an adverse on the banks' repayment culture, but would also force the government and banking system to review and withdraw the facilities to be hitting the future generation.