Saviour or Sonia's poodle, asks UK paper about PM Manmohan Singh

July 17, 2012
manmohsonia

New Delhi, July 17: Hailed abroad not too long ago as statesman and economic guru, Prime Minister Manmohan Singh is at the receiving end of increasing harsh comment with British daily, The Independent, critiquing his tenure under a disparaging headline "Manmohan Singh - India's saviour or Sonia's poodle?"

The report, although less widely circulated than several others in the UK, is the latest foreign publication to question Singh's legacy and his capacity to regain control of a coalition reeling under corruption scams, an unresponsive bureaucracy, bullying allies and a freeze in reforms.

More damningly, The Independent refers to an unequal sharing of power between Singh and Sonia, saying "Observers say one of Singh's problems is that he has no genuine political power. Rather, he owes his position to Sonia Gandhi...This has meant he has sometimes been unable to even control his cabinet and his failure to more quickly address actions of coalition minister, accused of defrauding the country up to $40 billion in a telecom licence scam, led him to being accused of further weakness."

The report says Singh's reforming zeal has evaporated and slowed the country's growth while political opponents are attacking him for overseeing an administration mired in corruption and sloth. Reference points include the 5.3% growth shock of the first quarter and downgrades by rating agencies among other indicators of a slowing economy.

Reacting to the report in the British daily, Congress spokesperson Manish Tewari said, "It is unfortunate that some people misuse editorial licence. While criticism is to be taken in one's stride; what needs to be kept in mind is that criticism should not cross boundaries of decency and start bordering on the offensive and I do hope that people who are entrusted with the responsibility of handing of editorial content would definitely keep this submission in mind."

However, BJP spokesperson Ravi Shankar Prasad saw the report as a validation of his party's criticism of the PM. "The non-performance of the Manmohan Singh government has been known for long. Now well-known journals on whose certificates the PM and Congress used to bank on are saying the same thing. The important question remains on how Sonia Gandhi can escape responsibility as she is the source of the PM's political authority."

Like in a cover story in Time magazine recently, The Independent report suggests that time is fast running out for Singh if he wants to retrieve his legacy as the reformer who released India from the shackles of the socialist dogma with a path-breaking Budget in 1991 after the P V Narasimha Rao government took office.

Taken together, the spate of adverse reports in international publications represent a souring of mood on the man, who was not so long ago hailed as the author of India's success story and savant of global economy.

The Time cover with its sharp headline "Underachiever" had noted that the PM needs to emerge from his personal and political gloom if he is to retrieve the stalling India story. The report quoted political analysts to say Singh might yet pull off a recovery, but needed to shed his government's reluctance to move forward on reforms.

Prior to the Time cover, The Economist had referred to the PM as a "lame duck" in a report on his meeting with Pakistani president Asif Zardari. In another report, it noted that "Singh may not be remembered as the man who reformed India's economy, but the man who only got the job half done." The tone of other publications like the Financial Times has also become more questioning, wondering if Singh can actually quell disquiet over India's economic growth.


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News Network
July 15,2020

New Delhi, Jul 15: Former Rajasthan deputy chief minister Sachin Pilot on Wednesday said that he is "not" joining the Bharatiya Janata Party (BJP).

"I am not joining BJP," said Pilot in a telephonic conversation with ANI.

The comments came a day after he was sacked as Rajasthan deputy chief minister and Pradesh Congress Committee chief by the party.

The decision to sack Pilot was taken yesterday after a CLP meeting at the Fairmont Hotel in Jaipur, Rajasthan.

At the meeting, as many as 102 MLAs unanimously demanded that Pilot should be removed from the party.

The Rajasthan Congress is in turmoil over the past few days. While chief minister Ashok Gehlot has blamed the BJP for attempting to destabilise the state government by poaching MLAs, Pilot has been camping in Delhi.

A controversy broke out in Rajasthan after special operation group (SOG) sent a notice to Pilot to record his statement in the case registered by SOG in the alleged poaching of Congress MLAs in the state.

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Agencies
July 30,2020

Kochi, Jul 30: The Kerala High Court on Thursday refused to grant the extension for the stay of a 74-year-old US citizen, Johnny Paul Pierce, who had earlier said that he felt safer to remain in India than in the United States amid the COVID-19 pandemic.

The single-judge bench of Justice CS Dias, which considered the writ petition, observed that the grant or extension of visa to foreign nationals fall exclusively within the domain of the Government of India (GoI) and that judicial review in such matters is minimal.

The power of the GoI to expel foreigners is absolute and unlimited, the bench said.

"In view of the categoric declaration of law by the Supreme Court, the plea of the petitioner to permit him to stay back in India cannot be accepted, as it falls within the purview of the guidelines and the discretion of the Government of India," the order said.

"The petitioner cannot be heard that the guidelines/policies/regulations formulated by the Government of India, that an American national though has been granted a visa having validity of five years has to leave India within 180 days, is irrational or unreasonable," it added.

The High Court, which was hearing a plea to permit the US citizen to stay in India for a further period of six months, said that the petitioner does not have a case that there is an infraction of Article 21 of the Constitution of India.

"The petitioner was well aware of the visa conditions when he arrived in India, and it is too late in the day for him to raise a grievance on the visa conditions," the bench said noting that the petitioner's love for India was heartening.

The High Court also directed the Foreigners Registration Officer to consider the petitioner's representation within a period of two weeks in accordance with the applicable guidelines and policies.

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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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