The Jury is still Out on Bank Mergers

A sound, robust and resilient financial system is a prerequisite for a modern economy. Weeks ago, the Modi government announced the mega merger of 10 Public Sector Banks (PSBs) into four, in a bid to consolidate and create stronger banking entities. Meanwhile, India’s growth rate has decelerated for five straight quarters to its weakest level since 2013, and the economy is crying out for reforms.

Reforms are an on-going process. This year marks the 50th anniversary of bank nationalisation, arguably the biggest structural reform introduced in the financial sector during the post-Independence period.

Evolution of banking in India

Economy, Jobs

By Meera Venugopalan

September 17, 2019

The Invisible Rural Millennials

Finance Minister Nirmala Sitharaman, like most of the Indian government, lives in the city. However, that’s not true for most of India which lives in the villages. This difference has been evident in the policy and politics, and even the future vision of the government.

Sitharaman recently intrigued the nation with her comment that the slump in automobile industry was due to the millennial ‘mindset’ of using Ola and Uber instead of buying automobiles. Possibly, she was referring to the downturn in consumption by millennials, an important segment of consumers in the country. But, are all millennials urban and privileged? What about the rural millennials whose daily wage may not pay for one Ola or Uber ride? Or do they not count in the Indian democracy?

They do, for the numbers speak for them. The millennial population in India is about 450 million, of which 67 percent live in rural India (Kantar IMRB Report, 2019). These millennials comprise 36 percent of the entire rural population in India of 833 million (Census, 2011). Further, 80 percent of the earnings of a rural household are contributed by them (Kantar IMRB Report, 2019). Therefore, any rural consumption is driven by the income of rural millennials and would have significant impact on the overall economy.

Development, Economy, Employment, National, Opinion, People, Politics

By Kota Neelima

September 4, 2019

Why BJP may Not Pay for the Economic Slowdown Anytime Soon

The rise of the Mandal parties has commonly been traced to their promise of politically empowering the hitherto marginalized; and their declining fortunes, to challenges in engaging with the next level of empowerment—economic—their core constituencies sought.

Once the increased political space failed to translate into material improvements in quality of life, voter disillusionment grew, amidst rising aspirations and a sense of having been taken for granted. The Bharatiya Janata Party (BJP) seized the opportunity, harvesting it electorally—beginning with the watershed parliamentary elections of 2014.

The impressive repeat endorsement the BJP-led National Democratic Alliance (NDA) received in the 2019 parliamentary elections may have taken some bite off the criticism leveled against it for its economic performance during its first term, but credible evidence of an economic slowdown is now mounting. It has, once again, brought the government’s ability to manage the economy into the spotlight.

Economy, National, Opinion, Politics

By Manish Dubey

August 15, 2019

Kerala Unprepared for Climate Change: A Clear and Present Danger

It was a gut-wrenching sight when Malayalam Television stations flashed poignant scenes of the landslide at Kottakkunnu in northern Malappuram district, where the body of a two-year-old boy was recovered clinging to his dead mother. When the landslide struck and mud and debris entombed their home last Friday, 22-year-old Geethu had tried to shield her toddler by tightly embracing him. Rescue workers struggled to separate the entwined bodies.

The accident occurred while Geethu’s husband Sharad was diverting the small stream that was gushing into his backyard. Sharad had a providential escape but his wife and child were not so lucky and his mother Sarojini is still missing.

The rescue operations face severe hurdles in Wayanad and Malappuram as rain continues to bombard areas susceptible to landslides. Central forces and the National Disaster Response Force (NDRF) on rescue operations in landslide-hit areas are finding it challenging to unearth people buried under the debris and tons of mud. While landslides, mud slips and flash floods continue to cause enormous amount of misery in the hill areas, reports from coastal regions give the picture of a turbulent sea gnawing away at the human settlements. The general impression of Kerala as a totally safe zone is turning into a fable now.

Daily, Development, Economy, Environment, Kerala, Politics

By K A Shaji

July 9, 2019

Shashi Tharoor: Disappointing Budget, The Indian economy is a slow moving, fettered elephant

Full text of Dr Shashi Tharoor’s reply to the Budget 2019-20

Thank you, Respected Chairman, for giving me the opportunity to present my Party’s views on the Budget 2019-20 that was presented by the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, on July 5, 2019.

I would like to begin by congratulating the Honourable Finance Minister for her maiden Budget and the first of this new government in their second innings. It is indeed a matter of pride for all of us in this august House and the country, that this was the second ever Budget that was delivered by a woman, since Smt. Indira Gandhi presented the Budget in 1970—and on behalf of my party, I would like to extend my deepest appreciation for the Hon’ble Finance Minister for recreating history. It is a traditional practice for the Opposition to hold the government accountable for its performance, including the announcement of the Budget, but before I do so on behalf of my party, I would also like to place on record my personal admiration for the Hon’ble Finance Minister, whom I have known for many years.

Economy

By Shashi Tharoor

June 18, 2019

How fishermen in Kerala are becoming refugees in their own villages

This year in Kerala, the South West Monsoon was delayed by a week. According to the weatherman, the rain, so far, is normal compared to the previous monsoons. However, the killer waves along the Kerala coast are anything but normal.

In Valiyathura, a coastal village in Thiruvananthapuram, the killer waves have swallowed some 100 houses forcing fishermen to take shelter at a nearby Government Upper Primary School. The school is less than 500 meters away from where their houses stood once but they have been bestowed with a new name. They have become refugees in their own village.

Development, Economy, Environment, Features, Life, People

By Special Correspondent

April 30, 2019

The Rise of Populism

A cloud of uncertainty hangs over India’s economic policy agenda. Two key concerns have emerged. First, whichever political party wins the Lok Sabha elections – on from 11 April to 19 May 2019 – one thing is certain: in the name of poverty reduction, public spending is set to increase on lazily-thought-out schemes.

Second, it is also widely expected that the new government will likely have a smaller majority in the Lok Sabha than the current government, and may, therefore, find it tough to garner support for difficult reforms on which the political consensus is weak. Except, these reforms can no longer be postponed without seriously damaging the economy’s underlying growth prospects.

Economy, Employment, Opinion, Politics

By Puja Mehra

September 24, 2017

Youth’s apathy leaves Kuthampully’s handloom industry on the brink of closure

For each Malayalee, a traditional Kerala festival, may it be Onam, Vishu, temple festival or one’s own birthday, is incomplete without the traditional Kerala dhothis and sarees. Kuthampully, a village on the banks of Bharathappuzha is famous for its own hand-loomed Kerala style clothing. Around 600 families here in this village are engaged in the making of ‘kasavu’ sarees, veshti, dhoti and ‘settu mundu’ which are highly accepted not even in Kerala, but around the world and across the cultures.

Though the natives are proud of their products and the acceptance they receive across the borders, the handloom industry here is on the verge of closure owing to lack of interest among the new generation to stick to their traditional business and to get settled in the village itself. Besides, the Government’s financial policies and ignorance of the craftsmen also make them put an end to this age-old employment.

“It is said that our ancestors came from Mysore to weave clothing for the king of Kochi centuries ago. They got settled here and made this village their home. Eventually, they started to sell them to the public who are interested. Thus, our products became quite famous among the local people and the outsiders,” says Saravanan (name has been changed to protect identity). The village is situated at Thiruvilwamala panchayat of Thrissur district.

Art, Culture, Economy, Life, People

By Greeshma Neelakandan

September 22, 2017

Kannur Airport: Government’s ‘business’ with Yusuffali to induce Rs.26-crore loss

As Kannur International Airport is all set to be launched next year, attempts are made by the State Government to give out the shares worth Rs.152.09 each to Lulu Group’s Yusuffali M.A. at Rs.100 per share, causing a loss amounting to Rs.26 crore to the State exchequer. The share value of Kannur airport when calculated in March was Rs.152.09 and the Government has now decided to sell the shares to the businessman at Rs.100. Almost 50 lakh shares will be received by Yusuffali at this rate.

It is informed that the report which was published in connection with the 8^th annual meet of Kannur International Airport Ltd (KIAL) had mentioned about this change in value of the shares which will be sold to Yusuffali. Several shareholders had also stated that they did not receive the shares from KIAL when they applied for them.

However, officials at KIAL termed the allegations “baseless”. The officials justify their stand by saying that no other investor showed interest in investing such a huge amount of money as Lulu Group’s Yusuffali did.

Development, Economy, People, Politics

By Greeshma Neelakandan

July 12, 2017

SBI account holder incurs loss of INR 50,000 in multiple fraudulent transactions

In an unprecedented and stunning case of e-transaction fraud, a State Bank of India (SBI) account holder lost money amounting to around Rs 50,000 in multiple transactions. Jayakrishnan S, an advocate practising in the Kerala High Court, owns an account at the Kaloor branch of SBI.

The complainer received a message from the bank’s SMS alert system indicating his balance from which he came to know that a huge amount of money had been lost from the account without his knowledge. Jayakrishnan blocked the debit card immediately and filed a formal complaint with the bank on Monday morning. A police complaint has also been lodged on the same day against the fraudulent transactions believed to have taken place on Friday and Saturday last week.

“On Friday night, I received some messages on my mobile in Hindi from some unknown site. It was not mentioned that a particular amount have been deducted from my account. On Saturday night I received an SMS alert from SBI showing my balance and when I crosschecked it was noted that Rs.49,909 has been deducted from the account through multiple transactions (around 800 transactions). It was also noticed that in each of these transactions, an amount of Rs 64.95 was deducted,” Jayakrishnan said.

Economy, Law, Life, Technology

By Greeshma Neelakandan

May 31, 2017

Kerala State Beverages Corporation to go Cashless

Kerala State Beverages Corporation (KSBC) is set to install card swiping machines in their Foreign Liquor shops throughout Kerala. They have published the tender notice on all major newspapers on 25^th May, 2017, inviting Banks to supply card swiping machines for all 271 FL-1 category Liquor shops spread throughout Kerala.

According to the tender notice by the State Beverages Corporation, introduction of swiping machines will provide better facilities to the customers of KSBC retail shops. It has also been said that, initially KSBC’s self help premium counters will be the set of retail shops to avail this service.

“This move by the KSBC could be a stepping stone for Kerala government to go cashless. If you ask me this idea should’ve been implemented at the time of demonetization. A lot of people that I knew just couldn’t spend the little amount of cash that they had to buy alcohol and there was no way for us to use our Debit cards in KSBC outlets,” says Jacob Anthony, who is resident of Thodupuzha. During that time, people had to resort to Beer and Wine parlors where drinks were sold at a marginally higher price.

Economy, Health, Life

By Bibin Raj

April 20, 2017

Petrol Pumps to be Shut every Sunday, Tale of Two Arguments?

From the second week of May, you might need to fuel up your tanks on Saturdays if you live in Tamil Nadu, Kerala, Karnataka, Puducherry, Andhra Pradesh, Telangana, Maharashtra and Haryana. Nearly 20000 fuel outlets in these States will remain closed for 24 hours on Sundays, starting from May 14^th.

This decision has been taken by the Consortium of Indian Petroleum dealers on the basis of two arguments. One being, fuel station owners adhering to PM’s ‘Man Ki Baat’ address where he urged the nation to use less fuel. And so, petrol pump owners decided to shut down once a week to reduce harm done to the environment. The second being that petrol pump owners want their dealer margins increased. According to them, the petrol and diesel business is not as profitable any more as it was in the past.

But these arguments don’t really make sense for a common man as any vehicle owner including a taxi driver would fill up their fuel tanks a day before if they know that petrol pumps will be shut the next day. When demonetisation was announced, the dealers protested because they did not want to be charged the merchant discount rate (MDR). But as the number of credit/ debit card users increased, the percent of MDR claimed was higher than the margins on fuel prices.

Economy, Politics

By Sumitra Nair