Below the line

Leaving out “media persons” while greeting the audience during a public event may not necessarily be deliberate, but when Minister of State for Finance Anurag Singh Thakur did so during a NABARD event in the Capital recently, it raised eyebrows.

This glaring omission assumes significance due to the ongoing controversy over the Finance Ministry placing a restriction on media persons entering its premises in North Block. The Minister showered praise on NABARD saying it has been striving to make grameen (rural) Bharat into swarneey (golden) Bharat.

The first day of last week’s ‘ice-breaking’ meeting between trade officials from the US Trade Representative’s office and their Indian counterparts in New Delhi was marked by major confusion. Neither the Ministry of External Affairs nor the Ministry of Commerce was able to share any information on the venue or any other details related to the visit with the media till late in the afternoon. While the US Embassy confirmed that the team was in New Delhi ready for the two-day talks on Thursday, it too had no details.

It was later reliably learnt that the communication lapse between the Commerce Ministry and MEA had led to a situation where no proper engagements were planned for the USTR team on the first day. Some quick thinking by the officials of the two Ministries helped save the day as impromptu informal interactions with the team were arranged and a luncheon meeting was quickly organised. India attempted to make up for the lapse the next day with intensive talks with the team, which included a meeting with Commerce and Industry Minister Piyush Goyal. Hopefully next time trade and diplomacy would have a smoother run!

The government departments are now passing the buck on the ticklish issue of categorising IDBI Bank. Is it a public sector or a private bank now that the government’s direct holding is less than 51 per cent? The issue has now landed at the Law Ministry’s doorstep after the Central Vigilance Commission took a view that IDBI Bank is still a public sector bank. But why does this matter? How you categorise IDBI Bank could have a bearing on where the next round of capital the bank needs comes from. With the Budget promising ₹70,000 crore to PSBs, the moot point is: Will IDBI Bank get a slice of this pie? If the government decides that IDBI Bank is a PSB, then any capital infusion from its side could lead to the LIC stake (currently at 51 per cent) coming below 51 per cent and the life insurer losing control.

If IDBI Bank is classified as a private bank then it will lose its share of the capital infusion. So it’s a ‘capital’ conundrum for IDBI Bank.

All eyes are on the Department of Financial Services (DFS) to see how it will fill the top posts in at least four large public sector banks in the next six to eight months. Bank of India is without an MD and CEO. Bank of Baroda — which has grown into a giant post the merger with Vijaya Bank and Dena Bank — will also see its CEO demitting office later this year. Punjab National Bank’s MD and CEO Sunil Mehta is due to retire in September. Canara Bank chief’s tenure is also expected to end early next year.

Now will the DFS opt for internal candidates or look for outside talent? It cannot allow the big banks to remain headless, especially when the government expects them to play a leading role in rebooting the economy. If DFS watchers are to be believed, the process of selecting the successors to the retiring bank chiefs is yet to start. Clearly, DFS will have to do some heavy hitting in the slog overs to fill up the vacancies.

Our Delhi Bureau

COMMENT NOW