q u o t e

Tuesday, May 8, 2018

neat neat exams

an old facebook post . likely to be read again . prompted probably by latest performance. which is not in public domain yet .
neat exam...

Isn't there something called sense of proportion . if you start making rules to prevent all those exceptional accidents it is not adminstration . It is not even common sense. It is in fact escapism. The easy way out. Shirking responsibility . 

The examiner should have used his common sense . he should have decided that a metal hook in the bra or in the undergarment is not  a copying gadget. Or  a hidden bomb. That is called sense of duty. Not just blindly following a rule , any rule , without trying to understand what it is meant for. Despicable , to say the least. 

To those who try to justify it, just one question . if the girl for whom the scanner beeped was sent in with the bra or the undergarment what would have happened in the worst case. If the heavens  fall we should be able to support it on our shoulders . and that is what goes into the definition of human beings. The minimum requirement.

And a word to those who excel in framing rules to plug all the conceivable loop holes. You are sir at your silliest best. You have probably not heard of the risk- restriction trade of. You have to decide where to draw the line. Simply bringing in restrictions to ward of 100% of the risks .... is not risk management. It is not management at all. It is just a matching game which school kids enjoy playing.

Monday, May 7, 2018

the write off debate

write off or balance sheet cleaning ?

an old post in facebook . reproduced here as the issue is still relevant and live.

i tried for an open debate on write off versus balance sheet cleaning. as usual no takers. not even one entry. i am convinced that face book is no place for serious discussions. for the 7th or 8th time
here is my view again. the debate post is reproduced in the end.

1. loan waiver.
this is the ultimate. the loan is written off. the borrower is duly informed. no more recovery steps. the adjustment need not always be from accumulated profit or net worth. govt can also foot the bill.

2. write off.
the loan liability is set off in bank's books by adjusting provision.
which is nothing but accumulated profit or portion of net worth renamed for this purpose. borrower is not absolved and hence not informed. recovery steps continue. whatever is recovered goes directly to the profit of the bank. not even routed thru the borrowal account. ( this however needs to be confirmed. i am not that sure. ). loan liability will appear in credit rating sites like cibil as the adjustment is done in bank's books only.

3. balance sheet cleaning.
frankly i don't know if it is any different from write off as above.
i am sure the confusion will be maintained at any cost. as this probably is the easiest tool to mislead public on huge bad loans and their imminent write off.

i repeat my earlier suggestion. balance sheet of banks should compulsorily declare these write offs  (  in the form of notes as they are off balance sheet items ) and carry it forward to the next balance sheet to reflect the accumulated position.

my earlier post
calling for debate
This write off issue is getting into muddy waters . even my close friends , experts themselves , say technical adjustment or cleaning the balance sheet is different. Let's start a discussion. 1. Define loan waiver ,write off and cleaning of balance sheet . 2. Establish the linkage if any and determine the chronological order , that is , what comes first and what follows 3. Discuss the impact of each on the bank. 4. Discuss the impact of each on the borrower .

let's debate.

 Before signing off I put the following suggestion too for debate. Balance sheet of banks should compulsorily have a note specifying the details of loans waived, written off and cleaned in the last 5 years.

Thursday, March 22, 2018

women's day suggestions

women's day suggestions. consolidated.

7. No threat is any threat. So if anyone tries to blackmail you ask him to get lost.
6. wear your confidence. stay confident and show it too.
5. socialise and make it a habit. thus increase your support among good people .
4. let us reintroduce rustic justice system. avoid courts. a small village committee will do .
3. let them mingle. familiarity breeds respect. help our boys and girls be friends early enough.
2. keep up a running dialogue. encourage children to share everything with parents.
1. make our girls brave. do not instill fear in them when they are children .

Wednesday, March 14, 2018

തെറ്റിന്റെ കുറ്റമാണെല്ലാം

തെറ്റിന്റെ കുറ്റമാണെല്ലാം
ശരി എപ്പോഴും ശരി തന്നെ
ശരി കൂടെ ഉണ്ടെങ്കിൽ പിന്നെ
ഒന്നുമേ ചെയ്യേണ്ടതില്ല
ചെയ്യുന്നതൊക്കെയും തെറ്റ്
ശരി മാറി ദൂരേക്ക് നിൽക്കും
തെറ്റിന്റെ കുറ്റമാണെല്ലാം
ഈ ലോകം ഇങ്ങനെ ആകാൻ

ഇല്ലായിരുന്നു തെറ്റെങ്കിൽ
ഈ ലോകമേ ഇല്ല പിന്നെ
ഇല്ലാതെ പോകും ശരിയും
ശരിയാണ് തെറ്റിന്റെ തെറ്റ്
എന്നൊക്കെ വേണേൽ പറയാം
ഒന്ന് തിരിഞ്ഞു മറിഞ്ഞാൽ
തെറ്റും ശരിഎന്ന് കാണാം

ശരിയുടെ കൂടെ പിറന്നു
ആരുമില്ലാതെ വളർന്നു
ഒറ്റയ്ക്ക് നിന്നു പൊരുതി
ഒപ്പത്തിനൊപ്പവും എത്തി
എങ്കിലും എന്തോ കുറവ്
തെറ്റിന്റെ ഭാഗമായുണ്ട്
എല്ലാം ശരിയായി തീരും
കാലവും മാറുക അല്ലെ

എപ്പോഴും ദൂരേക്ക് മാറും
ശരിയെ എനിക്കിഷ്ടമല്ല
കൂടെ നടക്കുന്ന തെറ്റ്
എത്രയോ ഭേദമാണിഷ്ടാ

Tuesday, March 13, 2018

U P election wonder ... an old post

modi jee pulled it off . 80% plus. unbelievable ? yes. for all . till a few hours back.

but it is a reality now. no use disbelieving. better to assimilate. and try to analyse. 

the facts first. 80% plus seats in the assembly election. similar number in the parliament elections two years back. so it is a solid foundation . no passing wave or anti incumbency as many of us would like to deceive ourselves. fact number two. no communal divide. muslims voted hindus as their MLAs . and probably vice versa at least in a few cases. those the dalits sent to the assembly are definitely not all dalits . if there was any divide ever it is surely something else . not communal. fact number three. no communal card. election campaign was a near wonder. in spite of the sure fire lure , the communal card was never played up. except may be a few instances like the kasab comment. which is more a play with words than an attempt to incite communal feelings. fact number four . no violence worth the name. the entire election process was almost devoid of violence. which again is unbelievable given the history of elections in the country and in U P .

all these in spite of the fact that demonetisation was an unqualified failure .

so let us start the dissection . last in first out. demon was indeed a failure . some knew it for certain. many had suspicion. a lot more people didn't bother. but almost every one thought it was time for such actions. impatience of waiting for too long was palpable. failure didn't bother them . after all it is rare that they see success . in personal life or in the public domain. but what they despised most is probably the tendency to use the risk of failure as an excuse for inaction .

now rest of the facts. the only common point is that there was a massive polarisation . on what lines or terms is not clear. rich versus poor ? no.  had it been the case the communist parties should have got at least a thousand votes in total.  middle class consolidation ? difficult. as they are the most unlikely class to stick together.

the third option . probably we have all along been misreading the people. to feed our own prejudices. to serve our own partisan ends. we have been keeping the people in this imaginary mould which we have designed for them. we have been feeding them opium. of the dalit minority mix. to keep them in slumber. and someone has woken them up all . in one big shout. and they went directly to the voting booths. electorate in UP and erstwhile UP made it very clear thru the ballot . and that way made themselves role models for the rest of the country . who enjoyed calling UP undeveloped , communal , violent , uneducated and what not .

here is a personal experience before signing off. i was in lucknow for a few years. we visited varanasi a few times with family. the great temple indeed was an experience. much bigger in size than the guruvayoor temple in kerala. same air of divine grace if not more.
we went to the mosque deep inside the temple complex too . with police guarding the entire route. we went in and out just like any other tourist. none raised an eyebrow . neither the muslims nor the hindus. and i belong to neither of the group.
coming out of the temple complex we went to a few shops outside. almost the entire circumference of the circular temple complex is occupied by thousands of shops . dealing in pan to sweets to curios. i had known that these shops are all run by muslims. i talked to a shop keeper. i asked the old gentle man ' how come you are all muslims around this famous hindu temple here ? don't you feel any threat ? aren't you aware of the great tension ? '

he looked at me with unconcealed anger . his answer which is reproduced below with which i sign off may give some clue to the questions we discussed in this article.

' i am sure you are not from this part of the country . it is aliens like you who create all the troubles. we have no such problem. get out of here. quick . before the people get wind of your evil designs and react. '

Thursday, March 1, 2018

നമ്മൾ സഹിക്കുന്ന വികൃതികൾ 2017

this is an old post of mar 2017
the mindset however remains same if not hardened further
hence this repost
നമ്മൾ സഹിക്കുന്ന വികൃതികൾ
abort ചെയ്യാൻ സുപ്രീം കോർട്ട് അനുവദിച്ചില്ലെന്ന്. 24 ആഴ്ച ( അതോ 26 ഓ ) ആയിപ്പോയി . 20 നു മുൻപേ നിയമം അനുവദിക്കുന്നുള്ളൂ . അത് കൊണ്ട് പ്രസവിക്കണം down syndrome ഉള്ള കുട്ടിയെ . വളർത്തണം . ഇതെല്ലാം ചെയ്തേ പറ്റൂ . ഇതാണ് ഞങ്ങളുടെ ഓർഡർ .
പിന്നെ ഒരു ആശ്വാസത്തിന് ചില കാര്യങ്ങൾ കൂടി പറഞ്ഞേക്കാം എന്ന് സുപ്രീം കോർട്ട് . 1 . നിങ്ങളുടെ ജീവന് ഹാനിയൊന്നും ഇല്ലല്ലോ 2 . down syndrome ഉള്ള സാധ്യത ആണ് കാണുന്നത് എന്നല്ലാതെ തീർച്ചയാണെന്നു മെഡിക്കൽ റിപ്പോർട്ടിൽ ഇല്ലല്ലോ .
എങ്ങനെ വളർത്തണം എന്ന് ചോദിച്ചു ഒരു ഹർജി കൂടി ഫയൽ ചെയ്താലോ . ഇതിപ്പോൾ ഡൌൺ സിൻഡ്രോമിന് മാത്രം ആക്കേണ്ട . ഏതു വൈകല്യം ആയാലും 20 ആഴ്ച കഴിഞ്ഞു പോയാൽ പ്രസവിച്ചു വളർത്തിയെ പറ്റൂ . ചിലപ്പോൾ എഴുന്നേറ്റു നിൽക്കാൻ കഴിഞ്ഞെന്നു വരില്ല . കിടന്ന കിടപ്പിൽ പരിചരിക്കേണ്ടി വരും . മിക്കപ്പോഴും ബുദ്ധി മാന്ദ്യം ഉണ്ടാകും . അക്രമ വാസന കൂടിക്കൊണ്ടേ ഇരിക്കും . തൃപ്പൂണിത്തുറയിലെ ആദർശ് സ്‌കൂളിൽ ഒന്ന് വന്നു നോക്കുന്നവർക്ക് കാര്യങ്ങൾ ബോധ്യമാകും . കണ്ടു ബോധം കേട്ട് പോകാതെ കരുതിയിരിക്കണം എന്നെ ഉള്ളു .
അതൊക്കെ ദൈവ വിധി എന്ന് സമാധാനിച്ചാണ് രക്ഷിതാക്കൾ ഇതൊക്കെ സഹിക്കുന്നത് . ജീവിച്ചു തീർക്കുന്നത് . ദാ ഇപ്പോൾ കോടതി വിധി . പത്തോ പന്ത്രണ്ടോ ആഴ്ച കഴിഞ്ഞാൽ നിങ്ങൾക്ക് ഇങ്ങനെ ഒരു കുട്ടി ജനിക്കും ജനിക്കണം ഒഴിഞ്ഞുമാറാം എന്നൊന്നും നോക്കേണ്ട വളർത്തണം വളർത്തിയെ പറ്റൂ ഇത് ഞങ്ങളുടെ ഉത്തരവാണ് .
അയർലണ്ടിലോ മറ്റോ ഇതിലും വൈകി അബോർഷൻ ഈയിടെ അനുവദിച്ച കാര്യം മറക്കാം . നമുക്ക് നമ്മുടെ സംസ്‌കൃതി കാത്തു സൂക്ഷിക്കണമല്ലോ . വ്യക്തി സ്വാതന്ത്ര്യത്തിന്റെ കാര്യവും മറക്കാം . സിനിമ തീയേറ്ററിൽ എഴുന്നേറ്റു നിൽക്കണം അറ്റെൻഷൻ ആയി നിൽക്കണം എന്നൊക്കെ കേട്ട് പരിചയം ആയി തുടങ്ങി അനുസരിക്കാനും പഠിച്ചല്ലോ . ഇനിയും പലതും പ്രതീക്ഷിക്കുന്ന കാലമാണല്ലോ . പക്ഷെ ഇത്രയ്ക്കു വേണോ ഈ സാഡിസം . അത് വേണോ ?
ഇന്നേക്ക് 12 കാഴ്ച കഴിഞ്ഞു തുടങ്ങി ജീവിതാന്ത്യം വരെ, ഒന്നുകിൽ നിങ്ങളുടെ അല്ലെങ്കിൽ നിങ്ങളുടെ കുട്ടിയുടെ, ശിക്ഷിക്കുന്നു . വീട്ടു തടങ്കലിൽ അനുഭവിച്ചാൽ മതി . കുറ്റമോ ? ഗർഭം ധരിച്ചു 24 ആഴ്ച കൊണ്ട് നടന്നു 20 ആഴ്ചക്കു മുൻപ് ഒന്നും കണ്ടത്തിയില്ല അത് തന്നെ . കണ്ടെത്താനാകുമായിരുന്നോ എന്നൊന്നും ചോദിക്കേണ്ട നിയമത്തിന് അങ്ങനെ ഒരു ബാധ്യത ഇല്ല .
ഈ അബോർഷൻ അനുവദിച്ചു പോയി എന്നു കരുതുക . വലിയ ഒരു misinterpretation ലൂടെ. എന്താകുമായിരുന്നു നമ്മുടെ രാജ്യം നേരിടുമായിരുന്ന പ്രതിസന്ധി എങ്ങനെ കര കയറുമായിരുന്നു ആർക്കറിയാം

Saturday, February 17, 2018

pnb fraud

 pnb fraud is astounding . as usual system failure is evident. and as usual the whole thing may end with the crucifixion of a manager or two . and that in brief is the biggest malady banking industry is facing . nay the country is facing . the country has been facing . the country is likely to face for ever .


let us start at the top. what exactly has rbi been doing ? modi's should be one of the the biggest loan accounts in the branch . there is no way rbi can skip this account in its inspection. did they ever comment on the risk of default of this giant borrower ? did they suggest any precautions ? did they study the performance of diamond industry as a whole and try to interpolate modis for a comparative analysis ? or are these things too much to expect from an rbi inspection ? if they indeed are , isn't it time to scrap this exercise ?

lou have most probably been issued in the past too . ( luckily they didn't devolve on the bank). did rbi look for a credit appraisal and ensure a proper sanction ? did they see what the securities are ? did they confirm that the goods expected to be imported did arrive and was properly hypothecated to the bank in these past lou . did they rule out the chance that past lou were cleared just by book adjustments ?

   pnb  head office

let us come down to the bank head office . credit monitoring set up in ho should have done all that rbi inspection is supposed to have done. in fact they should have done it first. it is the basic responsibility of the on line monitoring group , the inspecting officers and the sanctioning authority . rbi's role comes in much later.

incidentally it will be interesting to know what exactly the terms of sanction of this lou facility to the company are . what are the securities ? what are the other conditions if any ? what is the time frame for completing the underlying transaction , viz imports ? or is it possible that this facility was never mentioned in the credit reports submitted to the sanctg authy and therefore never sanctioned by an appropriate authy ? 

most glaring omission however is that this lou facility was kept outside core banking solution platform . is it the case that non fund based facilities are not enabled in cbs ? or is it that only lou are outside cbs ? for technical issues ? or other considerations ?

most surprising thing however is that the ho probably had no means to know of transactions done out side cbs . given the fact the every bank had a system of getting regular reports of transactions done outside cbs . and if pnb was an exception that needs to be explained

   pnb  branch

let us come further down ,to the branch . isn't there a way for the branch in charge to know what facilities are being enjoyed by one of the biggest loan customers of the branch ? isn't it his duty to send credit reports to higher authorities for sanction? and to ensure that terms and conditions of sanction are adhered to ?

just as a test case will the branch in charge reveal how many times he visited the unit , inspected the stock ? or reviewed the stock inspection reports of his juniors ? and whether he ever noticed any comment regarding imported goods being stored separately ? or not found at all ?
are we to believe that br in charge never knew of the swift messages ? and that he has never heard of lou ?  lou originating from his branch


let us go up now to the topmost layer , the govt. i deliberately kept it for the last as it is the most difficult stake holder to handle. it is that part of the sky where unprofessional lies fly around. for example note that this fraud originated in 2011. this lou which devolved on the bank in early 2018 had its origin in 2011 . this lou which was issued for a period of one year fraudulently , as against the normal validity period of 90 days, dates back to 2011 !

 then the silence on the claim by a whistle blower that he sent an alert in 2016. then the explanation that in international meetings anyone can barge into the group photos with the pm and that it doesn't imply anything . and the unexplained coincidence that every one of the big enough defaulters left the country just in time to dodge the law enforcement agencies of this country.

and the declaration that no loan which could turn npa was sanctioned after his govt assumed office . and most interestingly the stubborn silence since then. and probably his vow not to break it on mundane things like a bank fraud of a few thousand crores.


finally a word on the media . they are the people who give us stories. they paint it in choicest colours.

initial breaking news was that it originated in 2011 . and we waited for the links to  nehru or at least his family .

then came the expert opinion that one year validity of the lou is what the fraud is all about . had it been the normally permitted 90 days nothing would have happened .

then the story broke that a manager sitting at his desk for unduly long period managed it solo . using his swift password. and understandably nothing else.

waiting for more breakneck news


 pnb fraud is astounding . as usual system failure is evident. but the whole thing may end with the crucifixion of a manager or two . as usual .

 and that in brief is the biggest malady banking industry is facing . nay, the country is facing . the country has been facing . the country is likely to face for ever .