Business Standard

Thursday, January 09, 2025 | 09:33 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Hijacking bankers to catch swindlers won't work, consolidate relationships

The biggest victim is a state-dominated banking system that recoups very little from insolvent companies

In each strategic sector, no more than four state-owned companies will exist
Premium

Citigroup alone has $900 billion-plus of such deposits worldwide.

Andy Mukherjee | Bloomberg
Corporate chicanery appears in multiple forms and with unfailing regularity: think Enron Corp. or Wirecard AG. What bedevils capitalism in India is the propensity of some investors to cheat all other stakeholders.

In good times, “promoters” — as controlling shareholders are known in local law — puff up project costs and award contracts to related parties, draining profits away from the company. The extraordinary effort that entrepreneurs put in to beat the country’s legendary red tape provides, at least in some minds, a justification for helping themselves to an outsize share of the spoils. A highly opaque system of election

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in