Out of more than Rs 900 crore (Rs 9 billion) owed to them, creditors will get all of Rs 54 crore (Rs 540 million) -- of which less than half will be paid now, the rest after many years.That's a 94 per cent write-off, and the defaulting company (now virtually debt-free) has been bagged in the auction by a related party! How “ related”party that would tell another story.It is what banking industry calls as hair cut though it is THROAT CUT OF BANKING SECTOR AND THE NATION R.PONNAMBALAM
In 1970 lectures were flying high that running industries is not for Govt. but for business.So the Public sector Industries which were not doing well because of militant unionism and the Govts.s intervention in favour of unions on political grounds came under the hammer.Citing Credit Suisse, the ex. V.P. had said almost half of India's total wealth was in the hands of the richest one percent, while the top 10 percent controlled about 74 percent of it. The poorest 30 percent, meanwhile, had just 1.4 percent of the total wealth," .Then it has come about with the help of our Govt.'s help to private sector,Then why not the banking system make this top 10% to invest in the banking sector and make it vibrant.It is not sarcasam.Some thing good needs to be done.If we had done something wrong sometime let us correct it now R.PONNAMBALAM
Re: Correct the wrong now
by Vinay on Sep 05, 2017 07:42 AM
Ponnabalan Sir, It is the top ten percent who have cheated on the bank loans. They have diverted the funds abroad & are sitting tight raising hand and declaring themself bankrupt.
More than two years ago, the Reserve Bank declared war on what it had winked at till then: The fudging of bank balance sheets. Since then, banks have disclosed bad loans on a previously unimagined scale..So RESERVE BANK TILL TWO YEARS ago has been at fault all along.It stands acknowledged by this article R.PONNAMBALAM
Re: RESERVELESS BANK
by KRISHNAMURTHY V on Oct 09, 2017 09:18 AM
And who was responsible for turning a blind eye to the fudged accounts sheets from Banks as RBI Governor- the same Raghuram Rajan, who is a Nobel Prize winning possibility this year! No mention about the blunders of the RBI and its then Governor RR.
Banks exercise the right not to release the money to the loanee against incoming cheques and effect recovery of loan.It has happened in the company I worked .Has the banking system called into question those who released money to the loanee without effecting recovery and allowed piling up of unrecovered loans to this extent R,PONNAMBALAM
bad loans totaling more than Rs 7 lakh crore./government banks' collective net worth (without SBI) is only Rs 3.8 lakh.The reader should be helped to understand telling SBI ‘s and other govts. net worth separately.” Reserve Bank declared war on what it had winked at till then: The fudging of bank balance sheets Why and with what authority and justification the RBI had winked at fudging of balance sheets.Is that allowed under Accounting Norms?RBI means what? Is it the books or the men at the helm.The banking Industry would recollect the statement of one retired reserve bank Governor ;the banks are the non performing assets.At least after that banking system should have done something different.What was the ministry doing,What the representatives of proletarian parties in the parliamentary committee doing.What has the audit done? Has Audit pointed out all these every year R.PONNAMBALAM
Re: TNN may not be exaggerating.
by shivraj kasana on Sep 04, 2017 04:12 PM
BE IT BANK, BABUS AND BABAs ALL IS WELL SO LONG AS THINGS ARE FAVOURING POWERFUL.THIS HAPPENED IN PAST,IS HAPPENING IN PRESENT AND WILL HAPPEN IN FUTURE. S.S.KASANA
“Out of more than 900 crore (Rs 9 billion) owed ---, creditors will get all of Rs 54 crore (Rs 540 million) now the rest after many years”Again befooling the tax payer public without telling after HOW MANY YEARS and what IS THE COLLATERAL FOR THAT and what is the recovery mode if it fails then.Does not any every banker ask for collateral from ordinary folks to grant loan?Why we are not calling into question those officialdom for the action taken when repayment failed and why money against incoming cheques were released without realizing or recovering the bank loans and who all did it and why?R.PONNAMBALAM
At the end of all the disciplining of banks and businessmen, you may get a healthy credit culture.”So now it stands accepted that as of now and till now we did'nt and don't have a healthy bank Credit Culture.It is also not told when will the disciplining culture end .What that meansR,PONNAMBALAM
