Different strokes

As the biggest bank State Bank of India is bound to have the largest non-performing assets (NPA) - with 911 bad accounts adding up to Rs 5...

As the biggest bank State Bank of India is bound to have the largest non-performing assets (NPA) – with 911 bad accounts adding up to Rs 5,976 crore it tops the list defaulters list. IDBI is next with Rs 4,431 crore of bad loans from 716 accounts. These are absolute numbers and the pecking order would naturally be a little different in terms of proportion of total lending. But to continue, Indian Bank, seeking its third bailout has 559 accounts sending Rs 3,459 crore down the drain. Ironically, this is followed by ICICI, whose chief K V Kamath headed the CII committee which recommended the closure of Indian Bank. ICICI has 577 bad accounts with Rs 2,795 crore of NPAs. Others in the Rs 1000 crore plus category are – Bank of India (392 accounts and Rs 2,777 crore), Canara Bank (546 accounts and Rs 2,432 crore) and Punjab National Bank (291 accounts and Rs 2,209 crore. IFCI, the only loss-making institution, has Rs 1,855 crore of bad loans. Bank unions who have published the defaulters list seem to have missedthe other minor FIs and their NPAs. Among foreign banks, Bank of Tokyo-Mitsubishi has huge NPAs which could rival Indian banks in percentage terms (Rs 238 crore from 37 accounts); but Oman International Bank is higher at Rs 397 crore from 12 accounts alone. Among private Indian banks, Bank of Rajasthan tops with Rs 243 crore of bad loans from 66 accounts.

Clinton’s 42 minutes

Market circles cannot stop speculating about what kept Bill Clinton closeted with the Ambanis for 42 minutes. Its going to mean something major for Reliance say market punters who are pushing the price up in anticipation. Others say that Reliance is really worried about the security of its massive Jamnagar refinery and wants peace at any cost, hence their efforts to involve their top brass in diplomatic missions. One wag responds to this saying, "They have probably decided to just buy up Pakistan and were asking Bill Clinton to negotiate the deal". Reliance baiters say that President Clinton may have been all ears because the Ambanis were telling him how to handle politicians and keep them on a leash — lessons Clinton could have used last year. And finally there is this view: What would it take for the US President to allot more time to the Ambanis than the Indian Prime Minister? Remember, he is only 52 and has already been the most powerful man on earth for eight years. What does anyone do after that? Onlyone thing — become an ambassador for world peace and humanitarian causes such as poverty eradication and third world development. If one goes by Clintons’ speeches and what excited him most in India, it is exactly these issues. Maybe the Ambanis presented him a global plan which gives him a role for the future and them a foothold in the international league of movers and shakers. Right?

The KVP brand

So the media shy Ketan Parekh is on a huge publicity binge to shed his image as a broker/market operator and transform himself into an international league venture capitalists. His attempt met with mixed results. Yes, he was splashed on the front pages with all the big boys, albeit with Kerry Packer as the star attraction; yet every single report referred to him as a stock broker. In fact, Ketan Parekh does not even operate his card. Transition could indeed be a slow process. On the other hand, a fund manager says that even the market regulator is carried away with the hype (of course, the market regulator has always been carried away by hype until a crash happens) and the $ 250 million tie-up with Kerry Packer. He says that the regulator actually took umbrage at his (Fund Managers’) suggestion that Ketan Parekh’s open link up with Vinay Maloo of Himachal Futuristic would have been probed in another country, since it seemed to confirm speculation about Parekh being behind the huge surge in the HFCL’sprice.

What is KVP?

Notwithstanding the gushing media and banner headlines, market circles wonder how much of a role Kerry Packer really has in the tie up. KVP, say brokers actually stands for Ketan Vinubhai Parekh and not for Ketan-Vinay-Packer. Their logic: Ketan Parekh is the only real moneybag in the venture and is seeking a business transition. Kerry Packer may be the official rich man, mascot and crowd puller, but don’t miss his statements to the press. He is categorical that he knows little about India and almost nothing about infotech and such other areas that the Venture Fund would invest in. Vinay Maloo is not only a friend of Ketan’s but also beholden to him for the wonderful run that HFCL had, which really leaves only one person to call the shots.

Author’s email: suchetadalalyahoo.com