Now a days Vijay Mallya is grabing more front page headlines than the page 3 pics and news when everything was alright on his business front.We do not intend to defend Vijay Mallya, he was known of entertaining high and mighty in political, media and bureaucratic space on his private yatch, private plane, exotic villas here in India as well as exotic locations abroad. His life style was also closer to Kingfisher Calendar. It is also an open secret that he paid huge money to become a Rajya Sabha member, mind it he was an independent candidate and members had voted in his favor cutting across the party line buying displeasure from party bosses. Such was the power of King of Good Time that he could manage to be a member of Parliamentary Ethics Committee. It is also true that whenever he tried to raise funds from top Banks in India, they promptly obliged him.
But this is also true that Vijay Mallya tried to change the meaning of air travelling in India and his King Fisher Airlines set higher standards of luxury, efficiency and style in air journey. His business model did not succeed due to so many factors. people also blame his arch business rival Naresh Goyal of Jetair in sabotaging his airlines business. we do not want to go into the details, but when Mallya's airlines business started showing red smoke, it was prudent upon the bankers to act fast, instead of that they keep on refueling King Fisher business, and result is in front of you. from the evidences and indications available, Mallya tried to divert funds from airlines revival funds from banks to his individual accounts.Now umpteen number of investigation only through light whether the losses were because of business failure or willful default or both.
But my experience as banker says a very different story. Every business see high and low, when low is observed Bankers panic and dry up fund flow and business loose every hope to get revived. A friend of mine had roaring export business of jeans, his Chartered Accountant inducted some phony characters in his company as directors using his digital signatures and with shrewd manipulations shunted out the original promoters siphoned liquid funds. The banker is supposed to have knowledge about any change in the induction or retirement of directors. In this particular case bankers did not thought proper to ask the promoters that how come they are retired ? Now onus of payment of bank funds is upon my friend and his wife who were company's promoters. They tried to clear the mess, gone against the erring CA, shady directors inducted by CA in police as well as court. but instead of supporting this unit in revival the banker is hounding the promoter and made his life miserable though they are equally responsible in mess up of company.
Bankers in India like bankers in Western countries, should understand that when an enterprise or business live out it's life due to reasons beyond control of owner, it is far better to see that it is closed down.And that should also be applicable to many public enterprises also. But problem is no one want to bell the cat because we Indians have a typical mindset and do not accept failure as a part of business. we forget hiding faliure is many times more dangerous than facing it and trying to work together with all stake holders to try and minimize the damage. If we really want people to do business, and to see that people invest their money allow them an honorable exit if a business fails.
When a bank lends money in a business or an enterprise, he must realize that he is not a typical old age village money lenders whose only objective was to make as much as quick profit as possible. Modern day's bankers should understand and prepared to share the risk of business or enterprise. After all, they are a crucial part of the India's growth story.If they do not go out and nurture enterprise, who will ? Top bosses of banks should also percolate this kind thought down the line and encourage as well as protect honest managers.
Every time a business fails, there is a huge outcry that a scam occurred. Every failure is not a scam.
I appreciate Reserve bank Governor Raghuram Rajan who spoke in unequivocal terms that this typical mind set will end up in killing lending. Every Banker will think hundred times before lending.
There is a typical example of failure in American Business Space - Steve Jobs and his company Apple. It was jobs, who formed Apple, the greatest brand of our time. He failed so many times that he almost destroyed the company. Apple Board had no option but to sack him. Yet when things got worse, they had courage to call Steve back ! That is when he created the world's most valuable company. All this could be possible because he worked in a culture where failure is not a matter of SHAME. It is just another step in the process of building a great enterprise.
Do we ever change a typical village money lender's mind set to build NEW INDIA.
But this is also true that Vijay Mallya tried to change the meaning of air travelling in India and his King Fisher Airlines set higher standards of luxury, efficiency and style in air journey. His business model did not succeed due to so many factors. people also blame his arch business rival Naresh Goyal of Jetair in sabotaging his airlines business. we do not want to go into the details, but when Mallya's airlines business started showing red smoke, it was prudent upon the bankers to act fast, instead of that they keep on refueling King Fisher business, and result is in front of you. from the evidences and indications available, Mallya tried to divert funds from airlines revival funds from banks to his individual accounts.Now umpteen number of investigation only through light whether the losses were because of business failure or willful default or both.
But my experience as banker says a very different story. Every business see high and low, when low is observed Bankers panic and dry up fund flow and business loose every hope to get revived. A friend of mine had roaring export business of jeans, his Chartered Accountant inducted some phony characters in his company as directors using his digital signatures and with shrewd manipulations shunted out the original promoters siphoned liquid funds. The banker is supposed to have knowledge about any change in the induction or retirement of directors. In this particular case bankers did not thought proper to ask the promoters that how come they are retired ? Now onus of payment of bank funds is upon my friend and his wife who were company's promoters. They tried to clear the mess, gone against the erring CA, shady directors inducted by CA in police as well as court. but instead of supporting this unit in revival the banker is hounding the promoter and made his life miserable though they are equally responsible in mess up of company.
Bankers in India like bankers in Western countries, should understand that when an enterprise or business live out it's life due to reasons beyond control of owner, it is far better to see that it is closed down.And that should also be applicable to many public enterprises also. But problem is no one want to bell the cat because we Indians have a typical mindset and do not accept failure as a part of business. we forget hiding faliure is many times more dangerous than facing it and trying to work together with all stake holders to try and minimize the damage. If we really want people to do business, and to see that people invest their money allow them an honorable exit if a business fails.
When a bank lends money in a business or an enterprise, he must realize that he is not a typical old age village money lenders whose only objective was to make as much as quick profit as possible. Modern day's bankers should understand and prepared to share the risk of business or enterprise. After all, they are a crucial part of the India's growth story.If they do not go out and nurture enterprise, who will ? Top bosses of banks should also percolate this kind thought down the line and encourage as well as protect honest managers.
Every time a business fails, there is a huge outcry that a scam occurred. Every failure is not a scam.
I appreciate Reserve bank Governor Raghuram Rajan who spoke in unequivocal terms that this typical mind set will end up in killing lending. Every Banker will think hundred times before lending.
There is a typical example of failure in American Business Space - Steve Jobs and his company Apple. It was jobs, who formed Apple, the greatest brand of our time. He failed so many times that he almost destroyed the company. Apple Board had no option but to sack him. Yet when things got worse, they had courage to call Steve back ! That is when he created the world's most valuable company. All this could be possible because he worked in a culture where failure is not a matter of SHAME. It is just another step in the process of building a great enterprise.
Do we ever change a typical village money lender's mind set to build NEW INDIA.
.jpg "A Gumnam Actress Strips Nude to Protest Auto/taxi Fare Hike")
