WAS IT ALL WELL FOR YES BANK

RBI has issued moratorium on transactions of new age private sector YES bank and initiated supervision on its health. They also issued instructions to SBI,  the largest public sector bank of the country appointing it's DMD and CFO as administrator and to proceed for a consortium with  other public sector institution like LIC as a lead bank to buy shares of YES bank and for a probable merger of  the bank.  The bank crushed its 40% of market exposure of it capital and reserves. For depositor the threshold for withdrawal is made RS 50k daily and in case of serious emergency like medical or marriage etc the threshold extended up to RS 500k.
But, if one goes for an analytical review of the overall health status of this bank it is revealed that there are multiple reason for arising such situation.
If we go back to  the year 1999 we will find that one ROBO finance was formed in India  by three individuals headed by Mr Rana Kapoor under ROBO bank of Netherlands and by 2002 it has received approval from. Central Bank to start commercial banking operations.  By the year 2005 the bank issued IPO of Rs 300 crores and started its journey.  Soon the bank started sanctioning high value loans. It is also found that CEO Mr Kapoor was very liberal in sanctioning high net worth risky  loans and YES bank became one of top banker in country by second decade of this century.
Under deregulated system of interest rates YES bank offered even 7% interest on CASA deposits whereas the rate of other public sector banks during same period was about 3.5%to 4%
The value of the bank reached in its crescendo during 2017 when it's madcap investment above 90000 and its valued in BSE SENSEX for Rs394. But it's balance sheet in 2017 shown a huge NPA of Rs 6355 crores. The bank suffered huge investment failure and RBI did not allow it's CEO Rana Kapoor to continue at the helm of affairs and the bank under new CEO was due for getting new investment for US$ 2billions which they failed and bank could not declare it's Q3 of 2019  up to February 2020.  The bank wanted to sell its chunk of shares held by promoter Mr Rana Kapoor  but he declined this as he kept this for his daughter. On Mar 5th 2020 it's mdcap came down to a a crushing 3998crores only and  the bank which rose up to RS 394 in SENSEX  also crushed  to Rs 17 a fall of 91%.
In this imbroglio, RBI had no other way to intervene by superseding it's board of directors and act upon.Under instruction from authorities of Central Bank,  Mr Prasanta Bhusan,  CFO of SBI has started taking the stock of the situation and hopefully financial hiccups in YES bank will be over soon.

New King of Hirak

New  King of Hirak

Ray had filmed a movie long back around 80s of the century we left behind.The movie narrates the story of an anarchist King who perniciously vitiated all subjects under him and Ray presented the entire saga with master touch of his golden camera.
In such situation subjects are expected to keep their lips locked tightly. They are expected to lead an average life viz. They would go to workplace on time, comeback, buy groceries and provisions,  come back home, take homemaker wife and children out for a stroll, come back again have dinner, watch all hopeless soaps in television,  go to bed,  have some routine sex,  sleep, then get up early, move out to drop the child in school and the same circle will continue up to attaining retirement age.
One famous economist of yesteryear,  Nurkse referred one "vicious circle"  for some other situation,  but the life moves in the regime of Hirak within a vicious circle. If someone, comes out as a pedagogue named Udayan by Ray with any idea contrary to this cycle of life he/she would be termed differently. One should not "ask reason why"
In the movie Ray shown that the king deliberately acted against educational institutions in his kingdom. Udayan  acted against the wish if King and he was reprimanded in custody. Lastly, the all powerful autocratic King wanted those educational institutions are to be closed,  because according to him quest for wisdom is infinite and so it is useless to go for this.
Now I wish to represent a scenario where subjects are deprived of many basic needs of life and they are tethered within a threshold for longest period of their life. Those who wanted to be the Udayan,  they are branded sullen, sacrilegious to the kingdom.
Let us come to present day out of our rumination and watch this episode of Mumbai. A poet of Bengali origin named Bappadittya Sankar recently disembarked from a flight at Mumbai. He had a red scarf covering his neck and was hoping a tambourine in his held hand.He booked an Uber for his destination and started talking over his mobile phone with someone at Jaipur. The car moved and driver overheard few words from the discussion like French revolution, Lal Salam etc and he took the passenger to Santa Cruz police station and reported " sir take this man in custody,  he is anti national." Police took both inside the post and that was 10.30p.m. With an arrest although interrogation prolonged up to 1.30 a. m. The question level soared up to the name of his father,  where he is employed,  what his his salary ( all questionnaires regarding father). Then what type of poem he writes, is he a communists etc. Then they snatched his handset and scrolled all recent names and numbers he called. The faith was more on a faithful Uber driver then a honest citizen of the country.
He was ultimately released at 1.30 a.m.with an advice not to carry tambourine with him (may be a weapon can be used against government) and not to use RED scarf around his neck (may be used against government) with a cautionary word "Mahol Achha nahi hai".

Hirak is again afraid of a new Udayan!