Are Bad Banks here to Save the Corporates?
The Union Government has announced setting up of a Bad Bank (the name itself is bad), called the National Asset Reconstruction Company Ltd (NARCL). It will buy loans above Rs.500 crores from the banks....
Is the New DFI Answer to India’s Infrastructural Challenges?
The infrastructure sector is one of the key sectors for India to achieve higher economic growth rates and requires major investments into projects to push the growth rates higher. The infrastructure sector requires long-term...
Enhanced Access and Service Excellence – Easy way of Cheating People
In January 2018, the Government of India launched EASE 1.0. It was developed by Boston Consultancy Group (BCG), a multinational consultant with no experience in banking at all, and it is still run by...
Shame on you, Finance Minister!
Finance Minister Nirmala Sitharaman recently tweeted- “The Primary reason for PSBs to post such as Rs.57832 Crore turn around – from a loss of Rs.26016 Crore in 2019-2020 to a combined profit of Rs....
How ‘The insolvency and bankruptcy code’ helps to loot public money ‘legally’
A law called “The insolvency and bankruptcy code (IBC) 2016” was enacted in the parliament in May 2016 apparently to recover the mounting Non-Performing Asset (NPA) from the corporate sector. This law enables the...
Loans to Corporates – It’s high time to implement the RBI decision of 2016
RBI announced in August 2016, that it will move to cap exposure of banks to large borrowers while also taking steps to deepen the Corporate Bond Market. RBI stated that starting from next fiscal year...
Is Forbearance the Original Sin?
Chapter 7 of Economic Survey dealing with the banking crisis strongly emphasizes that the continuation of the policy of forbearance followed in the wake of Global Financial Crisis (GFC) even after 2011 was the...
BANK CHARGES EXHAUSTING COVID-19 RELIEF FUND
On 24th March, 2020, the Prime Minister of India has declared the nationwide lockdown due to global widespread of Covid 19. As a result, the entire businesses, works, and economy have shut down leading to...
कैसे बैंक हमसे हमारी बचत के पैसे लूट रहे हैं?
भारतीय बैंकिंग क्षेत्र एक लंबे और गंभीर संकट के दौर से गुजर रहा है। बुरे ऋण बढ़ रहे हैं और बैंक घटते मुनाफे के साथ कम-पूंजीकृत हो रहे हैं। नतीजतन, साख वृद्धि थम सी...
Random Reflections- Is India’s Banking Sector Moving Towards a Melt Down and Financial Collapse?
Bank’s performance is always the reflection of the country’s economy. Though results are not out for the financial year 2019-20, analysis shows that many banks will be showing a huge loss. The last quarter...
Random Reflections- Altering the Course of Banking
The Banking Sector was already in crisis. Crisis was created through the policies. Large credit was encouraged leading to the NPA Crisis. Development institutions like IDBI, ICICI and even UTI were converted into banks....
Random Reflections-The Tamasha about Write off, Waive off and the Reality
When COVID-19 cases are increasing, people are waiting for relief package every day, states are begging the Centre for release of GST share, permit more loans, allow RBI to lend to states at repo...
Banking in Disarray! How to bring it back on tracks?
RBI in its first announcement dated 27th March 2020, consequent upon corona pandemic 2019 had come out with various initiatives such as reduction in CRR, Repo Rate etc. thus to improve upon liquidity position...
DEPOSITORS FACING DOUBLE WHAMMY OF KEEPING SAVINGS AND PAYING FOR BANK LOSSES
The savings of people deposited in banks form the capital of banks which banks lend to borrowers. Banks earn interest on the loans issued to borrowers. The cost of operating expenses including salaries comes from this...
Random Reflections: Brothers have the last laugh- Banks become bald with haircut
Mukesh Ambani and Anil Ambani divided their companies under the Reliance empire in 2005. Brothers continue to use the same Reliance brand. Reliance is known for malpractices as explained in books like Ambani &...
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