Chapter 9A: God runs India. The bundle of contradictions called India is beyond the capability of any mortal man. There may actually be some merit in the belief of die hard Modi fans that he is a avatar of Lord Krishna. He has truly done wonders.
But that is not to say the earlier Prime Ministers were any worse. Rear view vision is 6/6. Looking forward is a lot more difficult. If I go back forty years – we never did have a bad Prime Minister. One may argue some were better or some were worse. But each of them operated at a unique point of time. And they had to play the ball depending on what ball was thrown at them. Every single government has done something uniquely good – and every one of them has had scams and cobwebs. As yet, we have not had the misfortune of a businessman as the leader. But USA is an interesting case study for sure. Not because it is bad but because the future of any country is now going to be like the future of a company. And soon many companies will be larger economically than most companies.
For someone apolitical and secular like me – all humans in high offices – be it the people’s representatives, the bureaucracy or the judiciary – deserve respect and gratefulness. How many educated people are willing to accept the uncertainties that come with a career in politics, sports, business or cinema.
Because most educated people look for a secure job – those without education end up employing them. The same is true in politics. Because many shy away from the uncertainty and ambiguity of a career in politics – they end up being ruled by individuals way inferior to what would be desirable and even lower than what would be ideal.
It is thus the intellectuals who are to blame for the poor state of affairs.
But coming back to HDFC Bank. Like the country, the leader here too was compromised. He had no power. He had no authority. And he had no problem to being subservient to the one who did.
Gujratis have no ego. That is what makes them outstanding leaders – in business or in politics. The period after 2014 marked a trying period for HdFC. And one they came out of with flying colors.
India has a broadly known “quantum” of savings and deposits. When one bank increases deposits. Someone else loses them. To that extent, it is a zero sum game.
The big national questions are known:
1. Should our currency be made fully convertible ?
2. Should the central bank stop intervening with interest rates ? When the repo rate goes to zero, what is the role of the central bank ?
3. Should we allow foreign owned private banks to have substantial and large share of bank deposits
4. Should foreign companies without a banking license be allowed to hold custodian licenses ?
5. Should banks be allowed to have an asset portfolio with a repayment plan which is different from that of the deposits ?
The answer can be YES or NO but it should be the same answer for all five questions.
It can’t be yes for some and no for the others.
