We can learn a lot from the US experience of handling the global financial crisis of 2007-08, said the business chamber
GN Bureau | March 12, 2018
All out efforts must be made by banks, regulators, government and India Inc to limit the collateral damage from the fraud in PNB, said Assocham.
It cautioned over-reaction by the banks and the investigative agencies since it would hurt essential credit disbursement to the trade and industry and hamper the growth expectations.
“Following unearthing of the alleged scams and the media headlines, the banks are becoming cautious while there is a perceived public pressure on the regulators to act tough. Given the scale of the problem, the level of noise may be justified, but it could cause a huge loss of confidence. So, it is time to show immense restraint and use the adverse situation as an opportunity to fix the systemic issues," said Assocham secretary general D S Rawat.
The chamber said: “We can learn a lot from the US experience of handling the global financial crisis of 2007-08. The US authorities worked at the root of their banking system and have put in place some robust risk mitigation and prudent system.”
In the present Indian situation while the debate on reducing government stake to below 50 percent should be encouraged, some immediate steps should be taken to do the capacity building in the PSU banks, enabling them to prevent, detect and act on frauds.
Given the technology disruption taking place and India's ambitions to enhance digital footprints, it is all the more important to put in place robust systems which are well beyond compromise, the Assocham said in a press statement.
It said given the nature of fast changes, the PSU banks with full support from the government and the RBI, need to develop expertise in specific business verticals. “Lending to infrastructure projects is not the same as lending for retail trade, transportation or operating in the bond market. A new approach is needed for technological and human resource upgrades," said Rawat.
In a scathing attack on media, political analyst Shehzad Poonawala has said that the time of media is gone and anyone with a smartphone and a social media account can be a journalist today. While speaking to Kailashnath Adhikari, MD, Governance Now, during the Visionary Talk seri
India is celebrating the 72nd Republic Day on Tuesday. Attendance at the main celebrations in the capital is limited given the pandemic, yet Covid-19 has not dampened the spirit of the occasion. India’s military might, cultural diversity and social-economic progress will be on display at the majestic
How much time do Indians spend talking on phone? It is on average 761 minutes per month, according to a new report from the Telecom Regulatory Authority of India (TRAI). The telecom regulator released its report, titled ‘The Indian Telecom Services Performance Indicators: July-Septemb
Renowned cardiologist Dr Ramakanta Panda has said that the pandemic has exposed the inadequacy of existing healthcare systems and it is wrong to draw comparisons with Korea, a country with the population equal to that of a single Indian state. While speaking to Kailashnath Adhikari, MD, Gove
The committee of experts appointed by the supreme court to deliberate with the stakeholders on the new farm laws held its first meeting here Tuesday, with one of its members saying that all stakeholders, including individual farmers, will be heard. Hearing a petition on the farm laws enacted
The nationwide vaccination campaign launched Saturday, the largest such exercise in the world, has started setting new benchmarks, with vaccines administered to 2,24,301 beneficiaries in the first two days. “India has vaccinated the highest number of persons on Day1 under its COVID19 v