Analysis: Tactless Modi hits new low

November 3, 2012
Modi_New_Low

November 3:To understand why Narendra Modi is dwelling on issues like Sonia Gandhi's travel bills, Shashi Tharoor's wife, Manmohan Singh's "silence" - he called the prime minister "Maun" (silent) mohan - during his election campaign, it has to be realised that he can no longer play the communal card that was so useful to him earlier.

The run-up to the 2002 elections was marked by the Gujarat chief minister's provocative ploy of uttering the full name of then chief election commissioner (CEC) - James Michael Lyndoh - in order to emphasise his "alien" roots. He also pointed out that both the CEC and Congress president Sonia Gandhi are Christians.

As for Muslims, he mocked their propensity to marry four wives by saying, "hum panch, hamare pachis" (we are five with 25 children) to underline their violation of the family planning norms. Modi also described the refugee camps for the victims of the 2002 riots as child-producing centres.

How effective this relentless baiting of minorities was for Modi and the Bharatiya Janata Party (BJP) could be seen from the rise in the margin of victory of Maya Kodnani, who was recently convicted for instigating the riots, from 7,000 votes in 1998 to more than 60,000 in 2002. Five years later, the margin rose to 180,000 votes.

Considering, however, that Modi has since changed tack, stressing his development plank and even holding 'sadbhavna' (goodwill) fasts in aid of social harmony, he is unable to whip up communal sentiments. He has had no alternative, therefore, but to fall back on issues like Sonia Gandhi's travels abroad although he desisted from referring to her medical expenses lest this was considered too insensitive.

However, his tactlessness was evident when he brought up the subject of Shashi Tharoor's earlier removal from the external affairs ministry following allegations of his then girlfriend's involvement in an Indian Premier League irregularities. Not surprisingly, Modi's question at a poll rally - "has anyone seen a Rs. 50,000 crore girl friend ?" - drew a riposte from Tharoor that his wife was "priceless" and angry responses from women's organisations.

The danger, however, of a descent into coarseness is that it generates more unrefined conduct. While the BJP's Mukhtar Abbas Naqvi tried to outdo Modi's lack of urbane sensitivity by suggesting that Tharoor could be made a minister for love affairs, the Congress' "loose cannon", as he once called himself, Digvijay Singh, asked YouTube users to search for Yashoda Ben who is supposed to be Modi's spouse.

The lowering of the level of political discourse is not confined to Modi and his supporters and critics. While the activist-turned-politician, Arvind Kejriwal, continues to be a "muckraker", as BJP president Nitin Gadkari called him, the president of the one-man outfit, Janata Party, Subramanian Swamy, has entered the mud pit with allegations of fraudulence against Sonia and Rahul Gandhi.

The apparent reason for the present murky scene is that neither of the two main parties, the Congress and the BJP, has been able to pull decisively ahead of the other in the political race. The resultant vacuum has left enough scope for new entrants like Kejriwal and Co and habitual litigants like Swamy to muddy the waters.

A measure of the misgivings which prevail can be gauged from the fact that Anna Hazare, who is Kejriwal's mentor, has expressed the apprehension that his protege can become "power hungry". Anna himself has re-entered the arena after a brief pause during which Kejriwal left his company.

Now, Anna has constituted another team along with the former chief of the army staff, General V.K. Singh, whose term ended under a cloud because of a controversy over his year of birth. It remains to be seen whether the general and the soldier (Anna was once in the army) can prove to be as effective as the earlier group of activists initially were.

Unfortunately, none of this kerfuffle is expected to yield a clearer picture in the near future. While the expected Congress defeat in Gujarat may make the Manmohan Singh government nervous about pursuing reforms with any vigour, it is unlikely to be of much help to Modi in fulfilling his ambition of moving to the national stage because of the BJP's internal problems.

For one, Gadkari's embroilment in the charges of sleaze will not give him much time for an organisational reshuffle. For another, the possibility of former Karnataka chief minister B.S. Yeddyurappa leaving the party will throw the BJP into further confusion.

The Congress, on its part, will be unable to take advantage of the disarray in the opposition ranks - the Left is demoralised while the BJP is a house in turmoil. First, because of the charges of corruption against Robert Vadra, Salman Khurshid, Virbhadra Singh and others and, secondly, because it will take time for the reforms to yield results.


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News Network
February 14,2020

New Delhi, Feb 14: AAP convenor Arvind Kejriwal has invited Prime Minister Narendra Modi to his swearing-in ceremony scheduled to take place at the Ramlila Maidan on February 16, senior party leader Gopal Rai said on Friday.

Rai, the convenor of the Aam Aadmi Party's Delhi unit, said a letter was sent to the prime minister on Friday morning.

All seven Delhi MPs and eight newly-elected BJP MLAs have also been invited for the oath-taking ceremony, Rai told news agency.

No chief minister or political leaders from other states will be part of the event as it will be a "Delhi-specific" ceremony, Rai had said on Thursday.

Kejriwal, through front-page advertisements in newspapers, has urged Delhiites to attend his oath-taking ceremony as he is set to become the chief minister of Delhi for the third consecutive term.

Kejriwal will take oath as Delhi Chief minister along with his cabinet at Ramlila Maidan at 10 am on Sunday.

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News Network
March 9,2020

New Delhi, Mar 9: The Centre and the Delhi government are working in close coordination to deal with coronavirus, Chief Minister Arvind Kejriwal said here on Monday.

Talking to reporters after a review meeting with Union Health Minister Harsh Vardhan on the preparedness for COVID-19, the chief minister said people arriving from foreign countries are being screened at airports.

A campaign will be run to make people aware of the preventive measures to contain the spread of the disease, Kejriwal said.

Health Ministry sending directives to states: Vardhan

Health Minister Harsh Vardhan said the government is prepared to deal with novel coronavirus and his ministry is sending directives, including guidelines, to states in all the languages on ways to contain it.

"We are sending detailed guidelines to all states on ways to contain coronavirus. Have asked states to strengthen laboratories and manpower to effectively deal with coronavirus and form early rapid action teams," Vardhan told reporters adding, that the government is prepared to deal with the infection.

Vardhan stressed on a coordinated action between all concerned departments and agencies for activities such as contact tracing, community surveillance, hospital management, identification of isolation wards, ensuring adequate personal protection equipment and masks and risk communication for mass awareness.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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