INSUBCONTINENT EXCLUSIVE:
One significant, but unfortunate, fallout of the cleaning up of the banking sector mess and disciplining the crony capitalists is that after
four years almost all forms of institutional structures stand discredited.
Government ownership of corporations is blamed for pampering the
favourites and breeding inefficiencies, private sector is accused of acting like a cosy club of the elite, while a quasi state-private model
that it was the state-ownership that lulled the management of Punjab National Bank to be complacent that led to the Rs 13,000-crore Nirav
Modi scandal, there were charges of favouritism and quid pro quo deals against ICICI Bank Chief Executive Chanda Kochhar.
Just as the dust
was to settle, the regulator got into the act to stall the re-appointment of Rana Kapoor as the CEO of Yes Bank
of people and institutions that stand exposed in this
In this era of instant justice and summary executions on various media platforms, almost every individual associated with any of these
may have been actions done with a motive to cheat and there could have been decisions taken with a business approach that turned bad
All bad decisions are not necessarily corrupt ones.
Given that every institutional structure is populated by individuals, it is the quality
and values of individuals that need the attention than on the structures per se.
The concept of independent directors cropped up with a
faith that they would act as custodians of minority shareholders and remain a check on the management
With the board positions determined more by the association with the top management, a majority of independent directors failed the concept
supposed to guide these institutions, or a reflection on private enterprises which is theoretically supposed to be more efficient, which
also means going bust when business turns sour and returning whatever capital that is remaining
For proponents of state ownership, this is
time to cane the private enterprise model saying they are the robber barons, even if helmed by the so called professionals
Have the professionals let down their champions No doubt
They have possibly done more harm to the economic fabric than crony capitalists.
Amid this din of corruption stand many tall professionals
enriched shareholders and remained relevant for the economy.
The clean-up has exposed the rotten apples in private sector, but there is
