Friday, September 9, 2011

A banker's cook-book

Kitchen experiments with the RBI Deputy Governor, who never misses an opportunity to rustle up his favourite Mangalorean cuisine. At the RBI, his “core function” as an economist is the monetary policy and the research departments; with supporting functions including communications. But at home, Subir Gokarn, RBI's Deputy Governor, often plays a very different, and perhaps more interesting, role… experimenting in the kitchen with Mangalorean cuisine.
With great verve and passion he goes into the intricacies of the northern Konkan food having “thinner, more sour and a little hotter gravy, compared to the southern dishes with thicker gravies, more garlic. Each has its own charm and I am fond of both.” Gokarn's romance with cooking goes back several decades. After completing his Masters in Economics in Delhi, as a 21-year-old he shared a barsati with two others in the Capital, where he worked for a government organisation. “It was a great time of life… we had a kitchen and decided to experiment in winter.” They harnessed a kerosene stove, a pressure cooker and some utensils, played around with different recipes, and soon Gokarn was hooked enough to peep into the kitchens of other friends and pay close attention to what they were making and how. He started with the basics such as rice, dhal, sabzi and a simple chicken curry. After a couple of years he went for his Ph.D in Economics to the US, where cooking became a part of survival. Here too he shared an apartment with a group of people who liked experimenting with food. “We'd get together, drink beer, cook food… and cooking became a way of life.” Gokarn completed his doctorate in 1989, worked for a year in the US and returned home in 1990 to join the Indira Gandhi Institute of Development and Research, where he was a faculty member for eight years. Cooking remained an intrinsic part of his life until his recent position in the RBI, which involves a lot of travel.
So what kind of cooking did he do?
“We had a maid who would cook the routine/basic stuff; but anything exotic and beyond the basic my wife Jyotsana and I would make,” he says, adding that they'd even “jazz up the dhals”. Gokarn is a Chitrapur Saraswat Brahmin and his region, now in Karnataka, was once a part of the Bombay presidency.

Two distinct cuisines

Elaborating on the specialities of this regional cuisine, he says throughout the Konkan coast — from Kerala up to Maharashtra — there are some common elements. “Essentially coconut is used as the base for most of the curries, with the souring agent being tamarind, kokum or vinegar. The Goan Christian cuisine used vinegar, so there is the combination of the sweet and sour in our food. Actually this is home food for me, and then we improvised around it; it never struck me as cuisine.”  But when he returned from the US and started looking around for more information on the food of his region, “I realised this was a separate cuisine.” What helped was the translation into English of a recipe book originally in Marathi. He got hold of a copy, improvised some more and never looked back! On the kind of dishes that distinguish this cuisine, Gokarn says, “If you go to seafood restaurants in Mumbai there are two generic cuisines there. One is Malvani (the standard cuisine of the Konkan region of Maharashtra, Goa, and some northern parts of West Karnataka), which is best represented by the Gajalee chain of restaurants. This is more the north coast cuisine; then there is the Trishna Mahesh Lunch Home, which serves Mangalorean cuisine, which has its own distinct taste.”

Kitchen tiffs!

Gokarn says his cuisine is somewhere “in between, so I experiment between the two.” During his long years in Delhi, he and Jyotsana often whipped up a meal for family or other get-togethers.  But were there any quarrels/arguments in the kitchen, which are common whenever a husband-wife team takes over the kitchen at the same time? “Well, not necessarily in the kitchen,” is his tongue-in-cheek reply. “Of course, she would always complain, and still does, that I do the dishes that get the most attention… the more dramatic part of the menu… and she does most of the work and doesn't get any attention! So I tell her: ‘Look, I go and buy the meat, clean it up, etc… anyway, that's an ongoing scrap!” Not one to give up easily, I persist. Does his wife complain about him messing up the kitchen, because most men are messy cooks? Does he clean the kitchen after cooking?
Gokarn's reply: “My wife complains, yes, but that's about many things! Messing is only one of them. But I do clean up; and of course the maid is there too, so that support system is there.”  Now in Mumbai with the RBI, and having to travel on work, he still cooks, but less frequently. “I eat out much more now, and when my daughter, who is in a residential school in Pune, comes home, we like to eat out.” And, he cooks for his daughter too. “She likes the dhal fry I make, which is a basic dhal with a dhaba kind of seasoning that she likes. She likes chicken curry and kheema with pao. But my cooking is very eclectic and I always improvise as and when the whim strikes. I enjoy it a lot.” His favourite restaurants are those serving oriental food; “in Delhi my favourite oriental restaurant was the Oriental Octopus. In Mumbai there are several places, but recently I have started going to Asia Seven. Then there is the Malvani food, which I prefer to Mangalorean, but I eat at Trishna quite a lot.”

Jazz and Blues

Gokarn's other passion is music — jazz and Blues. “I developed a great fondness for both when I was in the US and started to collect both on a systematic basis.” Interested in both the history and evolution of these music genres, when he worked as a faculty in the University, he had six credit hours of free tuition for anything he fancied. “So I signed up for a course in the anthropology department, on the anthropology of American music.  In terms of learning that was my most enjoyable experience as it had no professional significance; it was pure enjoyment.”  He returned from the US with an enormous collection of CDs and cassettes, but “never had the context to listen to it, and this music went into the background.”  Till, of course, he got a lucky break — his daughter upgrading her iPod and passing on the old one to him! He quickly transferred some 50 CDs on his iPod; “now I am back into Blues. On the morning flight (to attend a BL Club event in Chennai) I was on a Blues trip!” Now of course, with the RBI giving him an iPad, as a “work facility”, Gokarn also hopes to put his music onto it. For a little while perhaps, it'll be still be his laptop, along with the iPad, for work…. and more music and games, such as bowling, on the iPad!
Beyond banking hours
Reading: Time and mind space for any serious reading is very little now. Of course I look through books… but don't finish most that I start. If I am to finish, I'd do thrillers. I love Jeffrey Archer and Frederick Forsyth; find them very relaxing, especially at airports and on flights. I like business histories; a lot of my thinking on organisations, evolution and strategy, challenges — apart from my own corporate observations and experiences — is shaped by such reading.
Fitness: I used to be a regular gym person in Delhi. It fitted in beautifully with my routine for seven years. It was basic cardio in the gym and, in the winters, walks in the Lodi gardens. But now, because of the travel, even though I have a gym just below my apartment, my frequency has gone down dramatically.
Stress: Am worried about my erratic fitness schedule. It's something I need to watch because this is a high-stress job. You are on your toes, have to give full attention pretty much through the day; there are very few moments when you can let go. My previous job was not as stressful; I had a lot of time on my own because I was focused on writing. Here it is interaction almost right through the day and a whole range of issues to think about.
Religious views: None at all; I have no religious affiliation.
Dream for himself: To be as effective and ethical as I can be.
Ethics: Very important; it is an absolutely critical part of any judgement or decision I take. It's sad that the moral science classes we grew up with have disappeared from our syllabus. In a way, those are similar to what business schools teach through case studies.
Widening divide between rich and poor: I am most worried about absence of employment opportunities for large numbers coming into the workforce every year. Only a few can afford a business or higher education. We have to deal with this to give them not only skills but also some upward mobility in terms of income. We need to skill people very differently. The current educational framework is a sort of one size fits all, where you go through 10-12 years of school and are expected to learn something. I am not very sure that's relevant any more. Inequality will always exist, but we need to address some fundamental barriers and constraints. People who aspire should get the means to meet those aspirations. We need safety nets to protect people from complete deprivation.
HBL 

RBI holds coordination committee meeting

JAMMU, Sept 7: The meeting of the 16th state level co-ordination committee (SLCC) for Jammu and Kashmir was held today at Reserve Bank of India, Srinagar.  K.K. Saraf, Regional Director J & K, Reserve Bank of India presided over the meeting. The meeting was attended by Yoginder Kaul, DIG (Crime) M.K. Bagri, Registrar of Companies, Raj Kumar Kaul, Special Secretary, Law Department, Ranjan Kumar Barun, Regional Manager, National Housing Bank, New Delhi and H.S. Khitaulia, DGM, RBI.  Saraf informed that the objective of the meeting is to strengthen the coordination and cooperation among various agencies namely Reserve Bank of India, Registrar of Companies, State Government, Police Department, ICAI, NHB and others for taking action against delinquent Non-Banking Financial Companies and Unincorporated Bodies so that only healthy entities function in the State. Steps taken by the Reserve Bank to protect the interest of depositors and borrowers were elaborated.
Early Times

Allow inspection of files to dispose off lengthy RTI queries quickly avoid backlog says CIC

His concern was echoed by VS Das, executive director, Reserve Bank of India, who also serves as the appellate authority for the institution. "We receive unreasonably long queries that tax the resources and time of a busy organisation. Still, we can say that out of the 18,000 applications we have received till date, only 16% have gone for appeals," Mr Das said......

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Banks should enhance risk-assessment skills, says Andhra Bank CMD

Hyderabad : The skills required to asses risks in banks need to be enhanced significantly, according to Mr R. Ramachandran, Chairman and Managing Director, Andhra Bank. Speaking at the inaugural session of a two-day international conference on corporate governance in the banking sector organised by the Institute of Public Enterprise (IPE) here on Thursday, he said the risk management skills among the senior management were limited. Sound risk management would go a long way in ensuring good corporate governance, Mr Ramachandran said. Corporate governance should be based on proper regulation and transparency not only at the board-level but also in the branches, he added. Ms Rose Mary Sebastian, General Manager (Banking Supervision), Reserve Bank of India, said the apex bank had recently put in place the ‘fit and proper' criteria for appointment of nominated directors on the boards of banks.  Prof R. K. Mishra, Director, IPE, said inflation control and financial stability were essential for growth and corporate governance in banks was important in this regard.
HBL

TEA plea to RBI

The Tirupur Exporters Association (TEA) has requested the Reserve Bank of India (RBI) to advise banks to sanction a moratorium on repayment of term loan and its interest, among other relief measures, for the Tirupur knitwear exporters to help them bail out of the operational crisis experienced. TEA president A Sakthivel, in a representation to the RBI Governor D. Subbarao, pointed out that the predominant small and medium scale exporting units in the cluster had been reeling under severe financial problems as demands in the United States and European markets shrunk due to the present recessional trend. Besides this, the industry is yet to recover completely from the crisis experienced following the closure of dyeing units. According to Mr. Sakthivel, the financial troubles have been worsening every day and chances of loans taken by more number of units getting categorised as NPA (non performing assests) at the end of the second quarter of the current financial year are more.  In the scenario, the exporters wanted the banks to restructure the loans without any additional provisions apart from the demand for the moratorium.
HBL 

Teaser loans are legitimate products: RBI Deputy Governor

Reserve Bank Deputy Governor K C Chakrabarty on Tuesday said the central bank has not banned the controversial teaser rates, but said banks may have to make additional provisioning for such loans. "We have not banned teaser rates. It is a legitimate product," Chakrabarty told reporters after interacting with the students of Mumbai's St Xavier's College. His comments came a day after mortgage major HDFC launched a special home loan product giving borrowers the choice to opt for fixed interest rate for the first 3 to 5 years after which borrowers would be shifted to floating rate. Late last month, private sector lender ICICI Bank had also launched a similar product. When asked specifically if the recent product launches will attract additional provisioning, he said, "If the rule is there, it will attract (additional provisioning)." Industry observers have been pointing out that these products have some characteristics that are similar to teaser home loan schemes, launched by the State Bank in late 2009 and aped by others. "(A product) which is neither fixed nor floating is called teasing. So, those interest rates which are a mixture of these two is called teasing," Chakrabarty explained while interacting with the students. Fearing an asset bubble build-up and to contain the impact, the Reserve Bank had increased the provisioning for such assets five-fold to 2 percent. Following this, a slew of lenders, including the country's largest lender State Bank of India, had withdrawn their products which fall under this category.
Business Today

Corp Bank's heritage museum, a treasure of financial knowledge

Showcasing old coins to the present day financial inclusion initiatives of the Government will be the focus area for improving the founder's house of Corporation Bank in Udupi.....

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Dial a code and get balance enquiry

In a move that could save banks crores of rupees every year, the National Payment Corporation of India (NPCI) has mooted a system where non-financial transactions like balance enquiry could be moved out of bank ATMs to mobile phones.

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Digital Inclusion Day

A regulatory system for NBFCs

An RBI panel tries to find reasonable ground between the extremes of regulatory overkill and dangerous neglect

A working group headed by Usha Thorat, a former Deputy Governor of the Reserve Bank of India (RBI), has submitted a report on issues pertaining to non-banking financial companies (NBFCs). If the report is accepted, it will change some fundamentals. The group continues the Y.V. Reddy style of looking at regulation: Be extremely conservative and careful with size, be liberal and encouraging small efforts that do not pose a systemic risk. The report is an illustration of this style. There are two questions that need to be asked. Does the report address the issue of systemic risk? Will its recommendations create a barrier for newer and smaller institutions in continuing operations without regulatory overload?

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Customers in view, finally

It is heartening to note that Indian banking industry is finally waking up to customer service

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RBI tells Axis Bank that the proposed acquisition of Enam’s broking & investment banking businesses has to be an all-cash deal

MUMBAI: The Reserve Bank of India has told private lender Axis Bank that the proposed acquisition of Enam's broking and investment banking businesses has to be an all-cash deal. The regulator's stand on the matter, which was spelt out to ETby a person familiar with the RBI's thinking, puts a question mark on the ambitious deal that was structured as an all-stock transaction. TheRs 2,067-crore deal, pending since last November, was jointly announced by Axis and Enam, an influential Dalal Street brokerage. Under the original structure, submitted to the RBI a year ago, Axis had proposed it would issue stock to Enam's founders while a subsidiary of the bank would take over the businesses. But the central bank had turned down the proposal on the grounds the entity that would issue the shares was different from the one that would own the new businesses. Following this, Axis submitted a new proposal to salvage the deal. According to the revised plan, Axis would issue shares, acquire the businesses from Enam and "momentarily" hold the assets before transferring them to a subsidiary. But, this proposal, too, has not gone down well with the RBI, the person familiar with the regulator's thinking said. This is because it does not want such a deal to become a precedent for smaller banks trying to buy brokerages by offering stock to brokers. Enam officials declined comment while a spokesperson for Axis Bank said "there is no change in the deal structure and it continues to be an all-stock deal for which in-principle approval of RBI has been received". The Axis official also said "there is no truth in the speculation that the bank has been advised to carry out an all-cash transaction". Another senior bank official said the board was meeting on September 16 to consider a revised plan, and the revision did not envisage an all-cash deal. The RBI spokesperson did not respond to ET's email query.
ET

Salaries no more the reason for not getting talent

The RBI has made a point that growth with an elevated inflation is not the new normal and it is focusing on 3-4% inflation in the medium term. So, it clearly gives an indication how the RBI is looking at interest rates.......

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Checks and balances for pvt banks

...For years I have been advocating that corporates should be allowed to enter the banking field with strong safeguards. It is gratifying to note that the present draft guidelines enable corporates to apply. The case for corporates being given entry in to banking is that they would be able to set up strong banks. ...

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A leap in the dark?

....I am intrigued by the continued absence of any reference to offshore banking units in RBI reports. .....

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RBI still hawkish, despite global gloom

The D Subbarao-led central bank remains bent on fighting domestic inflation despite weakening global conditions, officials with direct knowledge of policymaking said, a week before it is widely expected to raise interest rates once again. The Reserve Bank of India (RBI), which has lifted rates 11 times in 18 months, makes its mid-quarter review on September 16. Though senior bank officials are hawkish, RBI Governor Duvvuri Subbarao will not make a final decision before the release of August inflation data on Sept. 14, the sources said. We still have high food and non-food manufacturing inflation, good credit growth to industry and growth is also quite good according to our view, said an official with direct knowledge of the matter. So, domestic factors will continue to be the key driver for policy framing, the official said. RBI officials have kept up the hawkish talk in recent weeks even as fears mount that western economies are slipping back into recession, although the central bank is widely believed to be nearing the end of its tightening cycle as its earlier actions exact a toll on demand in Asia\'s third-largest economy. Also, the finance ministry is putting pressure on Subbarao, whose term was recently extended for two years, not to continue tightening for much longer. Finance Minister Pranab Mukherjee this week was quoted as saying that he hoped the RBI will not raise rates further. Senior finance ministry officials said continued steady rate increases may not have the desired effect of cooling inflation without overly disrupting growth. Yes, inflation still remains the big concern but I see that peaking off at the end of the year, but growth will also come into sharp focus, one of the officials told Reuters.
Last week's jump in food inflation, high non-food manufacturing inflation, the knock-on impact of a June fuel price increase and resilient credit growth all point to a need for continued vigilance, several RBI officials said, declining to be identified given the sensitivity of the matter. Headline inflation for July was 9.22 percent, much above the RBI\'s end-March 2012 projection of 7 percent. India\'s food price index rose 10.05 percent in the year to Aug. 20, its highest in nearly six months, while the fuel price index was up 12.55 percent. Inflation has not yet peaked. To some extent the global developments will have some impact on the external sector. We are cautiously hawkish, the first RBI official said. While advanced economies are struggling to ward off stagnation, central banks in emerging markets are confronted with high inflation and cooling growth. Brazil recently surprised with a rate cut despite still-high inflation, and market speculation that China may ease lending conditions for some small and medium sized companies has added to expectations the tightening cycle will soon end in emerging markets. Brazil cut rates after raising them sharply, so they had room to cut. We are anyway behind the curve, said another senior RBI official. So where is the room to even pause unless the global recovery concerns bring down commodity prices drastically? the official said. Gross domestic product growth in India slipped to 7.7 percent in the three months through June, and with high inflation persisting, many economists are scaling down their growth forecasts. The RBI has raised its key rate by a total of 325 basis points to 8.00 percent since March 2010, including a sharper-than-expected 50 basis point hike in July, meaning its next move is not easily predicted. The minutes of the July meeting of the RBI\'s advisory panel on monetary policy showed that the majority favoured a pause or a quarter point increase. Subbarao overruled them.  
Express

Why 16 Sep is not a date for investors to worry about

The policy review on 16 September will not change that view, though the equity and bond markets are waiting nervously to hear what the RBI has to say on that day. There are expectations that the RBI will hike the repo rate by 25 basis points (bps) to take the total hikes in four months to 150 bps (100 bps make 1 percent) – but one can’t be sure on that......

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Four trends which make a strong case for RBI rate hike

Voices of dissent against the Reserve Bank of India’s (RBI’s) persistent monetary tightening have grown louder in recent months. A number of arguments have been put forth expressing the fear that the RBI might have hiked interest rates once too often to be good for the economy................

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