Govt will pump more capital into public sector banks: Jaitley
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Govt will pump more capital into public sector banks: Jaitley
https://timesofindia.indiatimes.com/business/in...
Last month, the government had unveiled a ₹2.11 lakh crore two-year roadmap to bolster public sector banks hit by non-performing assets (NPAs), which includes recapitalisation bonds, budgetary support and equity dilution.
Addressing heads of state-owned banks at the ‘PSB Manthan’ here, Jaitley said the government has decided to put in more capital from the Budget, through bonds and banks’ equity expansion and “therefore, it is the country which is virtually going to pay to keep the banking system in good health.”
“You won’t find us interfering” in commercial transactions, but “when the system is making all these changes and all these monetary contributions in order to strengthen the banking system, we want a robust public sector banking system so that your ability to support growth itself increases,” the Finance Minister told the bankers.
MSME support
He further said one of the focus areas banks have taken up is to support MSMEs (micro, small and medium enterprises) because the sector, creating jobs and giving a boost to the economy, has no access to international finance or the bond market.
Jaitley told the bankers that the government is spending a lot of public money and foreign investment is coming in. “…We need the third engine also to fire and a robust private sector, MSME sector, so that the optimum growth rate, which we have the potential for, can be reached,” he said.
NPAs of PSBs had increased to ₹7.33-lakh crore as of June 2017 from ₹2.78-lakh crore in March 2015. In the last three-and-a-half years, the government has pumped in more than ₹51,000-crore of capital into PSBs.
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What is the need of doing corruption, when this government can cleverly and flagrantly re-route taxes to industrialist friends ?
And common small business men that i know of, take loans at exobitant rates of 14-16% from these banks. And these banks are still making a loss 
Congress with its scams was much better. Atleast half the tax money was used properly by intelligent policy makers
And is there any correlation between demontisation and this NPA mess? Did economics nobel prize winner, Modi , thought that demonetisation would positively reduce previous or existing NPA mess?
J. Mathrubootham
Respected Sir/Madam,
I am sorry to say that I am writing today’s letter in a very foul mood. Problems started in the morning itself. After breakfast I was sitting in my living room and watching Gregory Peck and David Niven in Guns of Navarone film.
It is one of the great masterpieces. One day whether anybody in India will be able to make a film like this that can give thrills to your heart but also satisfaction to your brain?
No chance. We will just destroy it with nonsense embellishments. One cabaret song before WW2, one dream song on top of the guns, one politician who is chief minister of Navarone, and full thermocol special effects like Bahubali. And in the climax scene there will be some twist like there was only one gun and it was double role.
Hopeless country.
Usually once a week I see this film in the morning, as I relax in my living room. Not this morning. This morning just as the film was starting Mrs. Mathrubootham ran into the living room and started shouting: “Hey old man, my friends are coming from the Housing Colony Ladies Association, you please put something with dignity on the TV.”
Stupid woman, I am old man?! Hello, our age difference is one year and 17 days. You are talking as if you are some Miss Teenage Anna Nagar 2017. Then there is your stupid ladies association. Full nonsense talks and gossip and jealousy and backbiting.
Prison food
Sir/ Madam, usually when we are alone at home and I ask her what is there for lunch she will combine rice from last week and curd from Mohenjodaro period and make curd rice. But when her Ladies Association is there suddenly new dialogues will be released. She will make three curries and two vegetables and pudding also. And then act as if this is what we eat every day.
The ladies will say Mr. Mathrubootham, you are such a lucky man. And I will say quietly in my mind: Get out of my house stupid women or I will kill all of you and I am not at all afraid of life imprisonment because I am already used to prison food.
So, anyway, I put some business news channel and sat in the living room looking very professional. The ladies came and started interactions. One lady asked if I had any investments in the stock market. Mrs. Mathrubootham said oh, he has so many investments. (Sir/ Madam, in my whole life I have made one stock market investment. Some software company in Bengaluru. Not even Subhas Chandra Bose disappeared so quickly.)
Then the pleasant lady on the TV channel said one news: Apparently banks will have to take haircut of 6,000 crore rupees from loans they have given to some Reliance company. What nonsense is this 6,000 crore haircut?
Sir/ Madam, you are editor of this esteemed newspaper. You only tell me, why are we using devious terms like haircut and all? When we should just honestly write headline like this: “Banks will lose Rs. 6,000 crore due to becoming muttaals by giving loan to company.”
When people do stupid things we should call them idiots. Instead, if we give nice fancy names like haircut for total stupidity, they will do it again and again and again. So, instead of saying ‘downsizing’ we should say ‘destroyed livelihood of families’. Instead of saying ‘business restructuring’ we should openly say ‘compensating for previous stupidity with new stupidity’. Like that.
Whether I go to barber shop and say: “Murugesan, can you please downsize my top extremities?” He will laugh in my face and then call police station.
Yours in exasperation,
J. Mathrubootham
bro pls change the last word in the title….
Welcome Inflation!