S. Mitra Kalita’s fawning over her hero Shah Rukh Khan (Mint, 30 May) is understandable, but clouds her objectivity. PR, hype and hoopla may work for Bollywood where Khan-daan, mediocrity and plagiarism rule. But when it comes to hard-core effective management, what matters is picking up a right mix of talent, not outdated, expensive and egotistic performers, building a team and creating a suitable reward and punishment system. A cheerleader boss isn’t necessarily the best.
— Anant Gupta
The recovery of the once sick Indian Bank (“A bank that had been written off— almost”, Mint, 30 May) is a remarkable feat, which we can be proud of. Ranjana Kumar deserves kudos for the way she turned around the bank. Compare this with the way Britain allowed Northern Rock to sink instead of nurturing it back to health.
Private sector banks were waiting in the wings to gobble up weaker Indian public sector banks so that they could grow faster inorganically.
Thanks to the MS Verma committee and public opinion, these moves did not succeed.
It is a dark irony that the bank which was championing the sale or liquidation of the weaker banks is itself now in difficulty with a burgeoning non-performing assets portfolio and has stopped granting personal loans altogether.
- S. Subramanyan
Apropos the Café Economics article, “RBI cocks its ears” (Mint, 21 May), on how the Reserve Bank of India (RBI) is increasingly using surveys, the rationale or intent of the central bank’s action is not at all clear. I do not concur with the article that this gauging of people’s expectations would have any substantial fallout on the quality of decision making or on evaluating the performance of decisions taken on the policy matters.
Statistics is quite capable of giving reasonable inferences with any set of data, but that does not in any way increase the significance of data or the inferences. The domain of central banking as the guiding hand of economics should focus more on getting real- time data and benchmarking standards of performance/non-performance, achievement/non-achievement on an ongoing basis.
The forecasting by any means, including surveys through professional forecasters, is not the stuff any central bank should be dealing with. In these times of transitions, adoption of practices by organizations is becoming a norm, even though on many occasions they are not warranted. Why the central bank’s counterparts have been using the forecasting techniques, and to what effect and design, is not clear.
RBI, when it dabbles with something as amateurish as this, would do well to come out with details as to what it wants to achieve through this. No wonder, as the writer says, that it was ignored by the whole of the financial press.