Re: Rate cut
by Mathiyazhakan P on Dec 05, 2015 08:38 PM
I agree with arungopal agarwal. Banks are commercial entity and when things get bad (NPA). its shows inefficiency of the commercial entity or agents who thrive on the FDs collected and lending the same and earning their margins. Its common paradigm in any commercial activities, to reduce profit margins to strike a balance and make both the supplier and consumer (here depositors and borrowers) happy. In the modern technology driven banking environments, banks save one manpower by employing ATMs, CDMs, Passbook printing machines etc (Its one time invesment and have minimum recurring maintenance cost when compared to manpower employee cost which is always esclating year after year. The banks are saving on the interest cuts on deposits and passing the same or adjusting the amount against interest losss on NPAs. Instead they should act like wholesale merchants, who will have very less margins but huge volume of business to get the amount of profit to sustain his businesss. Banks to spread their risk instead dumping crores of loan to big corporates, they should reach out each and every retail borrowers and try to lend and collect EMIs in a flexible and efficient ways.
Re: Senior citizens only survival.
by Mathiyazhakan P on Dec 05, 2015 08:55 PM
I agree with Chanakya maurya that senior citizens deserve more earnings by way of increased interst rates for their FDs. Most of the senior citizens invest their life savings ind FDs and get periodical interests to suppliment their pension amount to sustain their retired life. The interest rates for FDs are high for short term and less for long term FDs. Instead the government can declare say 1-2% higher interest for a minimum period of 3 years and above and the same can be reimbursed to commercial banks. The same is done in the case of agricultural loans to farmers for short term crop loand by NABARD bank. Any additional interest rate can be considered as social security amount to senior citizens. This will bring stability of resources to banks to longternm lending such as housing loans etc. In this context, I have to bring the attention of the words of RBI governor that the amount of corporate loans discounted and nullified in the books of banks to dress up NPAs, will be enough to educate all youths in the country to educate upto graduate level free of cost. Imagine the lakhs crores of amount put into the drains through corporate project loans in the name of development by the GOI. Ha Ha that's :MAKE IN INDIA
