I do not talk about Banks which have been considered weak for decades. I am talking about strong banks like SBI, PNB, BOB, Canara Bank,ICICI bank Chairman of which bank used to sit and stand with the then Finance Minister Mr. Chidambram . These strong banks allowed their banks to be looted by gang of politicians associated with the then ruling parties and now bank staff of these banks have to face the consequences of their evil works.
The same Chidambram , the then FM had denied a respectable wage hike to bank staff saying that banks had no paying capacity due to burden of distressed assets.
I questions trade union leaders of these strong banks who pretend to be protectors of bank staff , why they were silent when Chiefs of these banks were looting banks .
It is ridiculous that now when all banks are more or less in red and kept on ventilator of capital infusion by the government , a few leaders associated with AIBEA shed Crocodile tears on stressed assets , that too only with malicious intention to malign present government.
Left oriented trade union leaders could do nothing to save banks from disaster and could do nothing to ensure respectable wage hike for their members. Even now they are doing dirty politics from the shoulders of bank staff.
Leaders of Congress Party , Chiefs of all PSU banks who retired or who are in service during last ten year and corporate houses who are defaulters of bank loans should now be questioned by CBI to unearth and expose the evil leaders and evil minded bank officers who allowed banks to be looted by bad borrowers.
Normally Chiefs of PSU banks and politicians who looted banks for their self interest make excuses of economic recession , global recession or high interest rate regime to cover up their misdeeds. They say that banks are in crisis of talented workers. But intelligent banks will never rely their lame excuses.
Because in the same economic condition and same environment , private banks have earned thousands of crore of rupees every year as profit. And PSU banks used to recruit so called talented boys and girls from campus and promote officers only on the basis of merit oriented promotion policy only.
CBI should question Inspectors and top officials of Reserve Bank of India who in the capacity of regulating agency and as maker of policies failed to discharge their duty to safeguard public sector or private banks . This is proper to mention here that five to ten lac crore stressed assets which are not exposed are not creation of one or two years , but hidden in their balance sheets for last five to ten years and even more. RBI is also responsible for its failure and for engaging it in flattery to greedy politicians.
I salute Raghuram Rajan , present RBI Governor who has taken bold step to clean balance sheets of PSU banks. I salute present FM and PM who are not putting hurdles in free working of RBI.
I make a demand that CBI should question and punish if warranted, all Chartered Accountants who from time to time audited and inspected various banks and submitted fake certificates on correctness of balance sheets of banks. I like to mention here that none of auditors could detect the fraud committed by Satyam Computers till Mr. Raju, promoter of the company himself disclosed the story of fake deposits and fake profits. Similarly all banks are audited by CA and these CA invariably certify the bad assets as good assets if they are properly paid illegal gifts in cash or in kind.
In India , it has become culture to glorify evil doers and punish good performers. If a CA boldly say spade a spade or a bank officer dare call a bad borrower as bad borrower , he or she have to face the consequences . This is why culture of bribery and flattery has taken deep roots in all banks and it is very much a hard nut to crack.
All PSU banks will start earning profit , if government takes a bold step to call erring officials of RBI , PSU banks and CAs and punish a few of them . Government will have to send a message to all that any officer or minister who plays foul game with public fund and who are dishonest in their working will not be spared.
I however do not have any expectation from even present government that it will be able to stop creation of new stressed assets if it also continue to put pressure on reckless lending and continue to impose targets for enhancement of its vote bank as Congress Party used banks for their self interest.
Banks need deep surgery, not band-aid: RBI Chief
The Reserve Bank of India, the banking sector regulator, has asked lenders to treat some troubled accounts as if they were bad loans and make adequate provisions, as part of its efforts to clean up bank balance sheets by March 2017. The RBI had conducted an asset quality review (AQR) of banks and identified specific accounts, which banks have to identify as non-performing in two quarters, October-December and January-March.
The RBI governor also said there is a need to develop the right management strengths and added that internally, the central bank is also working on ways to hire specialised talent from the private sector to address critical issues. Many of these banks have disclosed NPAs close to 9 per cent.
Invoking the mantra which he gave as an academic while dealing with NPA stress, Rajan said, "To the question of what comes first, clean up or growth, I think the answer is unambiguously "Clean up".
But in the entire episode, the good thing is that the banks are now being upfront about their NPAs, which will help them and the RBI clean up their balance sheets with required measures. Only a "small minority" of public sector banks will breach the requirements that the RBI mandates, he added.
Bank of Baroda, the country’s second largest public sector bank, on Saturday reported a loss of Rs.3,342 crore as bad loans and provisions against such loans surged. The reported loss would have been higher if it wasn’t for a tax write back of Rs.1,118 crore taken during the quarter.
In absolute terms, gross NPAs at Bank of Baroda surged 64% over the previous quarter to Rs.38,934 crore compared to Rs.23, 710 crore at the end of the September quarter. The gross NPA ratio, as a percentage of total loans, jumped to 9.68% from 5.56% in the previous quarter and 3.85% in the year ago quarter.
Provisions against bad loans in the December-ended quarter stood at Rs.6,164.55 crore compared to Rs.1,891.70 crore in the September quarter.
IDBI Bank suffered a loss of Rs 2,184 crore for the three months ended December 31, the highest ever reported by an Indian bank for a quarter.
The record loss from IDBI Bank comes after state-owned Indian Overseas Bank and Bank of India also reported huge losses — Rs 1,425 crore and Rs 1,510 crore, respectively — for the past quarter
Provisions against bad loans in the December-ended quarter stood at Rs.6,164.55 crore compared to Rs.1,891.70 crore in the September quarter.
IDBI Bank suffered a loss of Rs 2,184 crore for the three months ended December 31, the highest ever reported by an Indian bank for a quarter.
The record loss from IDBI Bank comes after state-owned Indian Overseas Bank and Bank of India also reported huge losses — Rs 1,425 crore and Rs 1,510 crore, respectively — for the past quarter
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http://economictimes.indiatimes.com/articleshow/50962886.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
10th March 2016--Latest News
On Sunday, Vijay Mallya wrote an open letter where he said that he wasn’t the only one to be blamed for the unfolding mess which seeks to threaten the very premise of a strong banking system in the country.
Mallya argued that even SBI was culpable because the bank knew about his company’s financial position all along and yet lent to it. Moreover, Mallya pointed to the rising bad debts and stressed loans provided to businesses by banks across the industry and said that he was only being made the “poster boy” of bank defaults.
“In fact, banks have NPAs [non-performing assets] of Rs 11 trillion and have borrowers who owe much more than the amount allegedly owed by Kingfisher Airlines to the banks,” he wrote. “None of these large borrowers (whose debt is significantly more than the Kingfisher Airlines debt) have been declared wilful defaulters.”
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http://economictimes.indiatimes.com/articleshow/50962886.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
10th March 2016--Latest News
On Sunday, Vijay Mallya wrote an open letter where he said that he wasn’t the only one to be blamed for the unfolding mess which seeks to threaten the very premise of a strong banking system in the country.
Mallya argued that even SBI was culpable because the bank knew about his company’s financial position all along and yet lent to it. Moreover, Mallya pointed to the rising bad debts and stressed loans provided to businesses by banks across the industry and said that he was only being made the “poster boy” of bank defaults.
“In fact, banks have NPAs [non-performing assets] of Rs 11 trillion and have borrowers who owe much more than the amount allegedly owed by Kingfisher Airlines to the banks,” he wrote. “None of these large borrowers (whose debt is significantly more than the Kingfisher Airlines debt) have been declared wilful defaulters.”
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Banking on trust: ICICI Bank tops list: TRA survey-10th March 2016
The Indian multinational banking and financial services company ICICI Bank (All-India Rank 10) tops the list for the first time as India’s Most Trusted Bank. ICICI Bank leaps 38 ranks from its previous years’ ranking to beat the government-owned corporation -
State Bank of India (All-India Rank 23) who reigned this sector for the past five years.
Another astonishing fact is the giant leap of 329 ranks taken by HDFC Bank (All-India Rank 12), making it the 2nd Most Trusted bank and listing it in the All-India Top 20 Most Trusted Brands.
A bank to watch out for is IDBI Bank with its consistently rising trust ranking every year from All-India Rank 208 in 2011 to All-India Rank 63 in 2016.
The other banks that feature among the top 10 banks are Kotak Mahindra Bank (All-India Rank 66), Yes Bank (All-India Rank 99), HSBC (All-India Rank 106), Axis Bank (All-India Rank 113), Punjab National Bank (All-India Rank 122) and Bank of India (All-India Rank 172).
Whereas Axis Bank (All-India Rank 113), UCO Bank (All-India Rank 554), Union Bank of India (All-India Rank 643) and Standard Chartered (All-India Rank 946) have fallen in their All-India Rank.
Mallya left India on March 2, government tells court-10th March 2016-The Hindu
10th March 2016
Industrialist Vijay Mallya left the country the very day the banks, to which he owed over Rs. 9,000 crore, moved the Debt Recovery Tribunal (DRT). The information came to light at a hearing before the Supreme Court on Wednesday.
Thirteen banks, led by State Bank of India (SBI), represented by Attorney-General Mukul Rohatgi and advocate Robin Ratnakar David, told a Bench of Justices Kurian Joseph and Rohinton Nariman that the liquor baron is said to have left the country on March 2, the day they approached the DRT.
My Views on bad loan have been expressed through my blogs several times during last ten years and through my letters to reputed newspapers and important officials. But unfortunately , all concerned turned blind eyes and deaf ears to all bad news related to prevalent evil culture in lending process of banks.
I have no doubt that Action Against Mallya, promoter Of Kingfisher will Shake the castles of all crorepati and Arabpati Defaulters of banks. This will send shocking and alerting message to all defaulters of banks who are though rich and capable to repay the dues but wilfully avoiding repayment of bank loan.
I hope this is a good message for bankers . Habit of borrowers of treating bank loan as charity and treating the court case fild by bankers against defaulters lightly will now stop. All bankers will feel relaxed to some extent if person like Mallya is booked to task and money is recovered.
Clamping down on Mallya is just the beginning.More Kingfishers will fly out of the nest. There are hundreds of Kingfisher in the system. Bankers moved in Apex court for stopping Mallya going abroad even after knowing that Mr. mallya already moved out of India when DRT became active and effctive. Now the question is whether these clever bank officials will give same treatment to all big defaulters.
Clamping down on Mallya is just the beginning.More Kingfishers will fly out of the nest. There are hundreds of Kingfisher in the system. Bankers moved in Apex court for stopping Mallya going abroad even after knowing that Mr. mallya already moved out of India when DRT became active and effctive. Now the question is whether these clever bank officials will give same treatment to all big defaulters.
A day will come when Mr. Mallya will expose evil minded and corrupt top officials of banks and top ranked ministers of UPA and Congress Party led Government who granted loans not only to Kingfisher Mallya despite several irregularities, but also to several other corporate houses. Total amount of bad debts exposed to public domain is only four lac crore but in fact it is more than TEN lac crores of rupees. And if all loans are subjected to strict pathological test prescribed by RBI , I think the volume of NPA in banks will cross even rupees twenty lac crores.
Let us see whether current government and CBI are able to detect all looters includinng bankers, borrowers, ministers and other VIPs associated with the process of lending dirctly and indirectly or keep thm confined to Mallya. If they act honestly, it will expose the hollowness of entire system . It will expose the evil culture created, irrigated and promoted by Congress Party led government. If they act honestly I think 90 percent of top officials who headed PSU banks and several senior offiicials who worked or who are working under them during last ten years will go to jail .
I am happy that at least current government is at least serious in matter of recovery of money from at least big borrowers. The intention of the governmnt is clear by the fact that they have chosen Mr. Vinod Rai (ex- CAG Chief) to head BBB . Another indicator of seriouness and honesty of current government is that DRT for the first time freezd Rs.513 crore of Kingfisher.
I salute Mr. Raghuram Rajan RBI Governor , Mr. Narendra Modi Prime Minister of India and Mr. Arun Jaitley who have taken bad loan hidden in PSU banks seriously and promised to recover every pie from defaulting companies. It is their joint efforts that the matter of recovery of bad loans is progressing slowly in right direction.
Even bank offficials of various banks who were enjoying top posts of banks and becoming wealthy through corrupt means and evil ways will now change their mindset and try to improve their quality of lending in future. If they are not taken to task , government will help in recovery of Rs.100 crore and these corrupt bankers will add further Rs.1000 crore in basket of bad debts.
Now even some of TV channels have started discussing the issue of bad debts by calling spokesman from various political parties. But I feel after watching such debates on TV, that most of politicians and journalists who take part in such debates are poor in knowledge related to bank loan and bad debts and they are far away from ground reality of bank, they do not understand the intricacies of bank loan and the process of recovery of loan .
Politicians of Congress party and AAP are simply trying to malign BJP and Mr. Modi for the sake of vote bank but they are least bothered of national assets. Congress Party is actually the creator of mess in PSU banks by following unethical practices in recruitment and promotions as also in building presssure of bankers for sanction of loan and then waiver of loan.
I am happy that at least the story of bad debts is now discussed on TV and print media. Slowly and gradually truth will surface and evil doers will be taken to task. At least now , people are treating capital infusion in banks are loss to taxpayer and loss to customers, depositors and investors of banks. There may not be a bigger scam than bank scam if it is unearthed fully. It will come out only when politicians stop doing dirty politics on non-issues and start thinking on important issues in the larger interest of the country.
Unpleasant story of Kingfisher is not a unique story related to Banks. In fact, Bankers in general are using process of evergreening to keep their loan in standard category even if the loan is bad.They restructure a bad loan to hide Non-Performing Assets . This is their well established culture and not an isolated story related to Mallya Kingfisher. Because it helps in protecting corrupt bank officials, it saves corrupt politicians and it reduces the work of judiciary.
Even Chartered Accountants , inspecting officials, vigilence officials, CBI, Anti-corruption bureau all were victim of this corrupt system and most of them worked on the basis of flattery and bribery they recieved in lieu of their certificate of health and certificate of honesty and cleanliness. Political masters usually play in nexus with business houses and then pull top bankers in thir fold and they all mutually and jointly enjoy the luxury of life . Let us see whether current government is able to break this nexus for good and for ever. It is in fact a hard nut to crack.
Clever politicians normally talk of credit growth to protect evil officials and then talk of economic recession to provide umbrella to looter borrowes and bankers. This reign of lie has to be stopped and government has to learn to rad between the lines and try to understand the true story of each bad debts .
Now even some of TV channels have started discussing the issue of bad debts by calling spokesman from various political parties. But I feel after watching such debates on TV, that most of politicians and journalists who take part in such debates are poor in knowledge related to bank loan and bad debts and they are far away from ground reality of bank, they do not understand the intricacies of bank loan and the process of recovery of loan .
Politicians of Congress party and AAP are simply trying to malign BJP and Mr. Modi for the sake of vote bank but they are least bothered of national assets. Congress Party is actually the creator of mess in PSU banks by following unethical practices in recruitment and promotions as also in building presssure of bankers for sanction of loan and then waiver of loan.
I am happy that at least the story of bad debts is now discussed on TV and print media. Slowly and gradually truth will surface and evil doers will be taken to task. At least now , people are treating capital infusion in banks are loss to taxpayer and loss to customers, depositors and investors of banks. There may not be a bigger scam than bank scam if it is unearthed fully. It will come out only when politicians stop doing dirty politics on non-issues and start thinking on important issues in the larger interest of the country.
Unpleasant story of Kingfisher is not a unique story related to Banks. In fact, Bankers in general are using process of evergreening to keep their loan in standard category even if the loan is bad.They restructure a bad loan to hide Non-Performing Assets . This is their well established culture and not an isolated story related to Mallya Kingfisher. Because it helps in protecting corrupt bank officials, it saves corrupt politicians and it reduces the work of judiciary.
Even Chartered Accountants , inspecting officials, vigilence officials, CBI, Anti-corruption bureau all were victim of this corrupt system and most of them worked on the basis of flattery and bribery they recieved in lieu of their certificate of health and certificate of honesty and cleanliness. Political masters usually play in nexus with business houses and then pull top bankers in thir fold and they all mutually and jointly enjoy the luxury of life . Let us see whether current government is able to break this nexus for good and for ever. It is in fact a hard nut to crack.
Clever politicians normally talk of credit growth to protect evil officials and then talk of economic recession to provide umbrella to looter borrowes and bankers. This reign of lie has to be stopped and government has to learn to rad between the lines and try to understand the true story of each bad debts .
CBI Details How Kingfisher 'Misused' Rs. 900-Crore Loan From IDBI
Though Kingfisher Airlines was in acute financial distress in 2009, owner Vijay Mallya managed to get a 900-crore loan from state-run bank IDBI, which ignored warnings from some of its officers to hastily and unusually clear the massive amount in just a month, according to the country's top investigating agency.
Mr Mallya, who owned India's biggest spirits company, has been taken to court by a consortium of 17 banks for failing to repay nearly a billion dollars in debt owed by the now-defunct airline.
"All enquiries conducted have failed to find evidence of misappropriation of funds by Kingfisher Airlines or myself," Mr Mallya had said in a statement.
The loan was then misused, the CBI says, to pay off parts of other debts that Kingfisher had accrued, and large amounts were sent abroad on false pretexts. That is what a separate money-laundering case, filed earlier this week against Mr Mallya, also alleges.
The CBI finds that loan was sanctioned despite an IDBI memo which warned that Kingfisher had failed to meet basic compliance- including depositing nearly 100 crores of tax deduction from its employees.
Read full news in following link
http://www.ndtv.com/india-news/cbi-details-how-kingfisher-misused-900-crore-loan-from-idbi-1285297
lavish life styles of such companies' CEOs, connections of them with politicians who are in power and off the power establishes the fact Law enforcement Agencies ae not sincere and honest. Latestly the son of ex CBI DIRECTOR too, as on today, a defaulter of several hundreds of crores of rupees, to several PSBs. The banks which defer to give loans to their staff at 4% Simple Interrest rate per annum give and accommodate crores of rupees of loans and give tempting OTS too. The Prime Minister's GYAN SANGAM team must urgently solve this genuine problem of PSBs.
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