Posted on: 26-07-10 13:33:17
Rising bad loans of banks a real big worry
Ref Times of India dated July 26, 2010.
Non Performing Assents (NPAs) in commercial banks have gone up to an alarming level, most of it caused due to restructuring of loans to the real estate and textile sectors.
In 2007, against a recovery of Rs. 9200 crores, public sector banks had written off more than 9400 crores. The story was repeated in 2008 when against a recovery of 9,300 crores banks had written off 8, 000 crores.
It is highly probable that news houses like TOI which are more stooges of big business houses had published by mistake news items like the above. Especially because these write offs are meant to faovur the business class
but boomerang on the common man in the form of petrol and diesel fuel hikes.
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Quote:
Originally posted by ramar2005
Rising bad loans of banks a real big worry
Ref Times of India dated July 26, 2010.
especially because these write offs are meant to faovur the business class
but boomerang on the common man in the form of petrol and diesel fuel hikes.
Very nice logic applied to economics, Ramar. Bad loan w/off = petrol and diesel fuel hikes. You must have graduated under Man Mohan Singh who has been promising since last 15 months that inflation would be controlled within a few months.
That said, bad loans have always been part of the bank balance sheets, thanks to Indira's nationalization. I would not worry much as most banks are owned by Govt. The real issue is that banks lack powers to enforce the secrity. For example even if they are holding land/ building as security, it is not easy to sell it off. Though of late , NDA changed the rules, there are still many hurdles and political meddling. Recently UPA , instead of helping recover the loans, applied Botox treatment by shoring up the capital. Advantage of this Botox treatment (Invented by Paulson of Bush Admn) is that for every $ 10 bad loans , you have to increase the capital by just 10% to maintain capital adequacy ratio. Botox tratment will rejuvenate bank for say next 10 years. Meanwhile stupid BJP (NDA) may come in to power and would clean up the mess (That is what NDA did last time instead of concentrating on retaining power) and NDA would be forced to implement tough rules , may be raise taxes and would become unpopular and would lose power and again Kangress would preside. The cycle will go on in our life time. So do not worry. After we are dead, who cares!
The influence of the economic slowdown began to emerge in earnest in the third quarter last year. While companies have dried up the liquidity ratios of banks bad debt have increased. However, different business structures: time-point level and the exposure of bad debts will be different for different banks.
RBI has indicated it will continue to tighten monetary policy, inflation in double digits is a major problem for an overheating economy that juncture.Even Premiers Economic Advisory Council in its review of the first quarter last week urged the central bank to intervene in monetary policy tightening to contain inflation ...
Honestly after looking at the numbers of USD 2 to USD 3 Billion dollars figures the issue is peanuts.
These types of monies are being handled by Mu KA's grandson Adithya the future CM of Tamilnadu.
While his mother Ms.Kanimozhi deals with USD 5 to 6 Billion while her mother Mrs.Rajathi Ammal is dealing in USD 10 + Billions.
Hence the amounts quoted are peanuts and loose change.
The last count there are 138 power centers in Tamilnadu. This was revealed by CHO in his recent Thuglak celebrations. Even if you count one billion USD per power center it is nearly USD 150 Billion in Mu KA's family.
What happened to Gopalakrishnan Ex-MD of Indian Bank ?. He has become the leader of Yadav Party in Tamilnadu.
As usual in India nothing will happen and life goes on..................................
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Sunny Leone a true Canadian DESI now back in India !.
The IT raid on Priyanka Chopra netted 9 Posh flats in Mumbai. Even if each one is worth 2 crores it is nearly 20 to 25 crore worth properties.
The IT raid on Katrina Kaif netted INR 6 crore cash and NO income TAX has been paid. Incidentally she is a british citizen working in India on work permit.
Recently the properties of our friend from Brampton Adnan Sami has been attached. He is of pakistani origin and from Canada. He had 3 flats in Hiranandani Powaii of value of about INR 6 crores. He is a foreign citizen owning these properties in MUMBAI and now the IT sleuths are asking him how he can invest and buy properties in India. His properties are all for Auction NOW.
He is begging for an Indian passport. If they let every Pakistani Kalakaar, Cricketer they will run to India for an Indian passport.
Case and point husband of Sania Mirza.
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Sunny Leone a true Canadian DESI now back in India !.
btw what is the last name of Aditya son of Kanimozhi and grandson of Mu KA?.
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Sunny Leone a true Canadian DESI now back in India !.
