Ok, let’s try & define ‘ignominy’

Imagine having a cook at home, and still being forced to go to the neighbour’s for dinner... and breakfast & lunch too... everyday! That’s the condition of Indian companies indulging in cross border M&As, with Indian banks pathetically failing to come up to the ask, when most required to!
It was just last fortnight that I was berating SBI being State ‘Bunk’ of India, with Standard & Poor’s giving a ‘junk rating’ to SBI’s bond issues. The irony continues this fortnight too. Think about it, when the Tatas gulped down Corus, when the AV Birla Group swallowed Novelis, and when Suzlon guzzled up RE Power, guess who all were laughing all the way to their ‘banks’. The foreign financing institutions. It’s killing to hear, but the fact is that while Indian companies mobilized over $25 billion of debt overseas in 2006-07, Indian banks provided just a puny 10% of the same, with over 90% being arranged by foreign banks (and their Indian branches).

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative