Mistake No. 1:Prior to 1990 provision for bad debts was made only for the purpose of getting claim from Credit Guarantee Corpn. A provision of Rs. 100/- would suffice even for huge loan amt. Mistake 2: The political statement - \"If we win we will write off all agricultural loans\" Mr. Devi Lal / VP Singh actually won and the Agri Rural Debt Relief Scheme benefitted the defaulters (mostly wilful ones). Subsequently political statements by person like Mr. Janardhan Pujari further vitiated the recovery climate. Suggestion: Instead of involving banks in doling subsidies to various categories of borrowers, Govt should set up \"Subsidy Corpn. of India\" - Congress Unit / BJP Unit / etc. and dole out funds directly to the borrowers / their vote banks. Names of all defaulters big or small should be readily available for financing agencies to see. Somehow the more decent persons (Mr Subroto Roys / Mallayas) appear to get more easily snared in RBI Rules net, the crooked Disproportionate asset cases remain scot-free.
Hats off to Kalyanataman & Shobha Warrior. Good Questions and Perfect analysis and answers by Kalyanaraman.
Will the decisions of RBI change on Banking recoveries? For the last 50and odd years Banks have been pushing the loan accounts into NPAs and various assets have been confiscated and attached. How many had been really realized to set off the NPAs. Why not negotiate with the people who are ready to settle like Mallya who opted to style with 4000 Cr. Why not further negotiate and realize more like 5000 Cr. He may be ready instead of repressive angles. Will our norms change?
If he has siphoned the money, he must be hanged, if it is a business loss, his assets and guaratees should be encashed or it is purely a case of King Fisher-let it merge with Air India, Air India loss if 5 times to Mallya.
Re: Mallya
by Defender on Apr 23, 2016 03:07 PM
Looks like you live in an era of Pre-Independence. Your taxes will be raised and prices will go up...Nothing happens to the rich, powerful and political guys in India...
Here is a man who has taken loans from banks and refused or failed to repay. A long, long rope was given to him by the banks. Cunningly, Mallya flees the country and then makes offers of part payments to buy time, because he may not pay back a rupee. All concerned i.e. the banks, the finance ministry, the RBI etc. etc. have helped Mallya escape. Even now there is no concrete urgent action taken for capturing him. Great personalities are saying that such business failures are normal and even Mallya could not have helped his downfall. That is totally false, one sides and biased. One must never forget that farmers have had to commit suicides for unpaid loans of just a few thousands.
Here is a man who has taken loans from banks and refused or failed to repay. A long, long rope was given to him by the banks. Cunningly, Mallya flees the country and then makes offers of part payments to buy time, because he may not pay back a rupee. All concerned i.e. the banks, the finance ministry, the RBI etc. etc. have helped Mallya escape. Even now there is no concrete urgent action taken for capturing him. Great personalities are saying that such business failures are normal and even Mallya could not have helped his downfall. That is totally false, one sides and biased. One must never forget that farmers have had to commit suicides for unpaid loans of just a few thousands.
It is a question of system. Banks always do all out efforts for performance of stressed assets. It is policies/ market/ misuse of funds during distress by industrlist, which has worstened the situation. Now repayment of loan comes last. In this scenario whatever best is done by all is like flowing water on hot dust under sun.
As sir said, Loans can be adjusted by providing these ways as per my view i.e. 1. adjusting the Interest rates which is in banks capacity can be done. 2. Deferred credit also will serve the purpose to the maximum extent.3.Allowing the bussiness to perform instead of declaring NPA by slashing employment will agravate the scene. 4. Working official will not perform effectively due to unnecessary MEDIA hype, who are agents of politics without any command on subject matters in any angle. Media create only Hype & Frightened alert but will not give solutions. 5. When motives of some Govt also trouble bankers as well as agencies. 6. I am not supporting who made money by looting banks by diverting funds to personal. Giving some exemptions to particular situations and time to time regulations will solve problems to the maximum.
Media has over board and they can not discriminate between a scam and a loss.Politicians are involved and the businessmen mismanage . You stop listening to medias' clumsy explanations
Even today the bank is doing a mistake by not accepting Mallyas offer of 4000 cr!! Looks like Ed n banks and other agencies are interested in penalising n punishing Mallya!! The object of bank is to collect money that's lent to Mallya? Sbi n bank willing to go for litigation but not collect the Capitol? Malla for all u know will stay for ever in uk like the IPL Modi?
Re: Banks doing mistake
by Parthasarathy Krishna on Apr 21, 2016 11:33 AM
That will be dooms day for banks. Neither they will get their money nor they will ever close this account??
