When Aam admi applies for a small scooter/housing loan, they have to submit a list of documents and do everything and beg for bank's mercy for weeks. They chase the man and the scooter for recovery if 3 instalments are pending, while second installment onwards, mobiles ring endlessly with follow up calls. When a big corporate submits his fabricated balance sheet in the evening, the Bank's Board clears loan in the morning, that too 200-1000 crores.Only document is that Audited balance sheet which is full of lies that even Bank doesnt believe in. Sometimes that Audited financials are also not requested. One letter from X Ltd's CFO and deal is done.Every 3 months it is rolled over and not repaid until original short term loans runs into a 2-3 yr loan. If at all repayment is demanded, another bank steps in and repays it. Corporates are running with others money without putting any margin. Bankers are afraid to ask the purpose of loan. Its doled out by showing "short term cash flow mismatch" or "temporary working capital shortage". No end use certificate or bogus CA certifcate to show proof of spending while the money is routed to capital or real estate market.Interest rates offered are bare minimum at Base rate or nominally above base rate.So low interest for personal interests.
So corporate's are running banks and bankers already. Why set up a Bank when they have the remote control of the Banks????
Banks which send mailers in the name of educating customers on Net Banking, and insist on getting Customer EmailId and Mobile number both, every 2 months under name of KYC, inspite of having all these details at the time of opening an account, their behaviour is suspect.
In 90's our low cost housing loan was obtained from a Public Sector Enterprise thru' a middleman's intervention. In 2005 I have taken home loan from private bank without any hastle.NBFC funds 95% of Infrastructure equipment at very high cost.If they are allowed as banks,cost of fund will come down so the cost of housing and infrastructure will come down.30% income tax, 10% excise,12.5% VAT ,we actually spend 50% of our earning.Let public choose from competition.
Sir, It is serprising. Industrialists are able to manage banks even without being partners to it then even if RBI does not allow them how will it matter. Present system allows banks to give loan even knowing that it will not be returned. There is no mechanism to monitor investment of loaned money. Banks rely on certificates of Banker's engineers. I an en executive of a big medium size industry and I know what is happening. If I go to bank with genuine scheeme, I will not get loan, but these industrialist, may be small ones, get loan on the schemes which remaiuns on papers. Can RBI do something to see that public money is used properly for development of country and increase in employment oppertunities?
Almost all of the corporate houses are in the market to suck the public money, there moto in entering in the market is solely to make money, they don't care the welfare of the society and the country. Corporate houses beleive in running of the business by right or wrong means, thay are already sitting as the master of Public money through their issues,but still it is limited to certain people of the society , they are most powerful in guiding their interest through thick and thin but once they will be holding banks as Masters they will be more like kings beyond the reach of the Public and uncontrolable.Corporates don't mind to compromise against the interest of the country once they are controlling the Capital , they may be uncotrolable.It is better they should concentrate in those fields in which research is required.Still the corporate houses are not spending on Research work.And catching those business sector which were earlier tackled by small scale sector.Most of the money is made by the corporate houses at the expense of labour,semi-skilled labour, or poor skilled labour.They are acting as money sucking Machines .They are far far away form the welfare of the society because they don't need the vote of Public on any issue. Please be away from the hard earned public money and be content with your own earned money however that too is based on the Public Funds collected in the name of MF,Equity=Public Issue,FD etc.etc.
Re: Re: What a nonsense writer
by Prem Mohan on Dec 24, 2010 11:41 AM
I think India should adopt international norms and give up this business of lakhs and crores. It is very difficult for foreigners to comprehend our figures.
Re: What a nonsense writer
by Mohan Pankaj on Jan 07, 2011 10:13 PM
Dear Kailash, You have visited so many airports in the world but not gone through class 5th Math. Try to learn ABC of Number system, you will come to know that 100cr =1000 Million = 1 Billion.
Perfect judgement and useful response. RBI is another rare institution which acts sensibly and with long time perspective.If bankers start distillery or manufacturing cars .... what will happen .... In an age of "core area consolidation" there is no scope for such ridiculous directions... while banks like icici & hdfc have made indian banks change, they are also nightmare as they suck out money from small retain investors/credit card holders. Let the corporates do what they know and not get into banking which has far reaching impact on the country's large population.
Re: corporates in banking
by bn yalamalli on Dec 24, 2010 11:34 AM
"Banks like icici & hdfc are nightmare as they suck out money from small retain investors/credit card holders".
This is a fact.The least charging Bank in India is SBI.Compared to SBI, the above two banks suck.
There is no check on this since these do not follow RBI Guidelines.How come?
Re: Re: corporates in banking
by Prem Mohan on Dec 24, 2010 11:45 AM
You are an educated person and to you the solution should be simple. Take your money to the Bank that offers the best value for your money. If you think it is SBI, so be it. Some people are willing to pay private banks a little more money for the service they offer.
Finally, HDFC and ICICI are hardly private banks. They have been promoted by large governmental organisations.
Re: Re: corporates in banking
by Krishna iyer on Dec 24, 2010 11:43 AM
While they follow RBI guidelines in gen they find ways of fleecing by putting conditions and making customers sign on agreement which are not approved by RBI.Unless the customers realise this and resist and complain to RBI nothing much will happen as these banks "buy" their way out
Re: Re: Re: corporates in banking
by Prem Mohan on Dec 24, 2010 11:46 AM
Take your business to SBI or any of the Public Sector Banks. If enough people do that, these banks will learn a lesson.
