Saturday, April 3, 2010
Who knows real NPA
It has been the demand of many bankers before RBI to relax norms for classification of assets as Non performing Assets. It is because most of banks are showing profits by hiding bad assets and cutting down the amount of provision and booking inflated profit on unearned income. Banks know very well that concealed NPA are likelty to explode if norms are norms are relaxed by RBI.
RBI has infused capital in so many banks so many times in the past because they also know very well how bankers are cooking their balance sheets by concealing bad assets and window dressing in credit delivery and deposit mobilization. Government of India waived loans of 70000 crores last year before the evil activities of banks are revealed by Auditors. Waiver of loan and compromise settlement is an on going process where banks are constrained to sacrifice good money in bad hands.
CMD who flatter Ministry and key figure in the government is believed blindly as long as big exposure takes place as happened with Satyam Computers. Once upon a time Chairman of Indian bank was most beloved figure in banking circle, but when reality came on the floor, he was thrown out of system. I have been regularly writing on various forums on this subject in my language and as peer my competence to open the eyes of person sitting at the top of affairs. In banks , an officer who try to say the truth is thrown ina remotest place to shut his mouth.
As a matter of fact none wants to say and accept the truth and think it wise to remain in fool’s paradise.
There are several Harshad Mehtas, several Raju, many Ketan Parikh, many Natwarlals ,Many Kodas,many fake Sai Babas, Many Icchadharis, a lot of Mayawatis,several Lalus , hundreds of Mulayams, plenty of Rabri Devi in our country who earn unparallel popularity and after a few years face severest erosion in it and have to bear with just reversal in popularity with greater momentum. When they go up in their ladder even if by fake means, media and so called great leaders start worshiping them, following them blindly.
In share market when share prices of a script goes up, all experts on TV and all investors start recommending and buying it. Suddenly real value of that script comes on the floor and all experts starting giving negative news for the same script. Similarly some people are worshipped and condemned without knowing the facts.
Is there anyone who will investigate and discover the real and intrinsic value of PSU BANKS?
Danendra Jain
Ganaraj Chumuhani
Agartala
03.04.2010
Saturday, March 13, 2010
Manage bank honestly
Can CMD like MVNair ensure long lasting good health of the bank with the help of bad General Managers? Can Mr. Nair portray attractive balance sheet for long without window dressing when his most of General Managers are corrupt, charge sheeted or facing CBI inquiry.
When General Managers are not of sound mind and spotless integrity, can they expect their juniors to be clean and loyal to bank? When executive holding top posts are not honest and loyal to the bank, honest and efficient junior officers in the field cannot dream of getting promotion and good posting.
This is a bank where promotions take place completely on the whims of Interviewer. Officers who do not toe the line of bosses are posted at critical places. Charge sheeted officers, General Managers, DGMs and AGMs in Mumbai or in any Metro are not transferred out of their home town. But officers belonging to other states who are not having any God father at Administrative offices are posted at such branches which were spoilt by flatter and corrupt officers and who left no stone unturned to keep boss happy through gifting of costly and precious items.
After all who can stop this unhealthy culture prevailing in a bank when person sitting at the helm of affairs are corrupt and shielded by God father in Banking Division in Delhi or RBI or Ministry of Finance. There are many Satyam like Raju in all banks. It is a matter of time when real exposure of these mischievous persons takes place. Yes it is true that by the time their exposure takes place career of many good persons will be spoilt, ruined and raped.
I have however no doubt that future generation will curse MVNair and blame his policy for the fate of bank, though MVNair as a man is very much effective, assertive and knowledgeable.
When General Managers are not of sound mind and spotless integrity, can they expect their juniors to be clean and loyal to bank? When executive holding top posts are not honest and loyal to the bank, honest and efficient junior officers in the field cannot dream of getting promotion and good posting.
This is a bank where promotions take place completely on the whims of Interviewer. Officers who do not toe the line of bosses are posted at critical places. Charge sheeted officers, General Managers, DGMs and AGMs in Mumbai or in any Metro are not transferred out of their home town. But officers belonging to other states who are not having any God father at Administrative offices are posted at such branches which were spoilt by flatter and corrupt officers and who left no stone unturned to keep boss happy through gifting of costly and precious items.
After all who can stop this unhealthy culture prevailing in a bank when person sitting at the helm of affairs are corrupt and shielded by God father in Banking Division in Delhi or RBI or Ministry of Finance. There are many Satyam like Raju in all banks. It is a matter of time when real exposure of these mischievous persons takes place. Yes it is true that by the time their exposure takes place career of many good persons will be spoilt, ruined and raped.
I have however no doubt that future generation will curse MVNair and blame his policy for the fate of bank, though MVNair as a man is very much effective, assertive and knowledgeable.
Thursday, February 25, 2010
M V Nair,S L bansal ,Vijendra , Bikash Mahapatra, BD Mishra, Duggal, Chauhan
Everyday news about GDP growth or bank lending rate comes on TV and newsprint. Chairman of ICICI or HDFC or SBI or PNB or Union Bank whoever he or she may be, they are inclined to give such a statement which suits wishes of government. They are number one yes-men of Ministers and they are invariably surrounded by corrupt and CBI case ridden General Managers .When General Managers are facing CBI inquiry and are not punished by Chairman of any bank it shows how much corrupt and false they themselves are. Executives more often than not, are addicted to speak lie and concoct figure. Therefore if these CEO talks about stable interest rate regime or social inclusion it appears ridiculous and ludicrous. Neither can one believe on statistics submitted by them or bad loans or real health of economy.
Even Chartered Accountants or Credit rating agencies are not doing their job honestly. Based on some statistics or the other they are simply predicting the probable NPA percentage in banks based on some premise or the other. They believe on balance sheet data of last year which I do not believe. . If they look into the books /CBS system of at least five banks in five towns or ten towns in a state say Jharkhand or Bihar and they assess personally without believing any word from banker I think reality will precipitate. But before that rating agency has to learn prudential norms of the banks very carefully and then work for this task seriously at least for three months. I think bad loan percentage will be at least five times of what they are exhibited in balance sheets.
An officer who is not well versed in modern tact of keeping boss happy or not master in cooking figure cannot become executive. An officer who is not tactful in earning money and share with bosses cannot dream of becoming executive. When corruption is at large scale at higher level even CBI or CVC will not pursue the case. Even Ministry of Finance will remain silent. RBI officers and inspectors will submit favourable report.
One can imagine what is happening in a bank where all General Managers like Vijendra, Bansal, Govindan are surrounding the Managing director of that bank and not punished even after various charges. It may be also be guessed who are the God fathers behind such heavyweights .In such sorry state of affairs one cannot dream of good health of bank and neither can he believe on the preaching of these CEOs of the bank. In such bank good officers cannot dream of promotion or good posting. And this is bitter truth that a bank cannot show stable growth without the whole hearted support of field workers. When field functionaries are ingeneral unhappy they cannot be loyal but they can be good flatterer.It is therefore hard nut to crack to assess the real health of any bank.
Even Chartered Accountants or Credit rating agencies are not doing their job honestly. Based on some statistics or the other they are simply predicting the probable NPA percentage in banks based on some premise or the other. They believe on balance sheet data of last year which I do not believe. . If they look into the books /CBS system of at least five banks in five towns or ten towns in a state say Jharkhand or Bihar and they assess personally without believing any word from banker I think reality will precipitate. But before that rating agency has to learn prudential norms of the banks very carefully and then work for this task seriously at least for three months. I think bad loan percentage will be at least five times of what they are exhibited in balance sheets.
An officer who is not well versed in modern tact of keeping boss happy or not master in cooking figure cannot become executive. An officer who is not tactful in earning money and share with bosses cannot dream of becoming executive. When corruption is at large scale at higher level even CBI or CVC will not pursue the case. Even Ministry of Finance will remain silent. RBI officers and inspectors will submit favourable report.
One can imagine what is happening in a bank where all General Managers like Vijendra, Bansal, Govindan are surrounding the Managing director of that bank and not punished even after various charges. It may be also be guessed who are the God fathers behind such heavyweights .In such sorry state of affairs one cannot dream of good health of bank and neither can he believe on the preaching of these CEOs of the bank. In such bank good officers cannot dream of promotion or good posting. And this is bitter truth that a bank cannot show stable growth without the whole hearted support of field workers. When field functionaries are ingeneral unhappy they cannot be loyal but they can be good flatterer.It is therefore hard nut to crack to assess the real health of any bank.
Saturday, February 20, 2010
Stimulus Funda
I am not an economist, nor an expert in finance management of the government. I however try to project my feelings. Liquidity crisis or Sub Prime Crisis occurred in USA and other European countries. How did it affect Indian economy in the year 2008 which forced Indian Government to sanction stimulus package in line with what Obama did in USA.I am unable to understand it. Can anyone help me?
I came to know that since FII were withdrawing money from stock market, India’s economy has been shaken. It means our great miracle economy of the world depends on FII fund and survives due to FII fund.
Some intelligent persons tell that due to financial problems in USA, they had blocked payment of exports made by Indian businessmen. This resulted in liquidity crisis in many countries. Some says that export of goods has suffered a lot.
Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?
If not how did it result in liquidity crisis? When foreign countries stop import, real problem may arise in selling exportable goods in domestic market.
If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.
CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?
Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.
Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?
If domestic demand has not increased, how the said affected units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?
Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?
Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?
If it is true, government should admit that the current price rise is nothing but the making of the government.
Income of poor people did not rise but prices showed relentlessly rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.
Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.
Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.
If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.
If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.
Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.
It is ironical that the government which is talking of social inclusion to attract Indian voters is also talking of merger of banks or infusion of fresh capital into PSU banks to enable them to compete with global banks which caused crisis in USA and other countries. When they plead consolidation of banks in raising exposure limit of the banks they perhaps forget the interest of common men or the issue of social inclusion.
Can I conclude now that the fear of global recession in India was artificial and virtual and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?
Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009
I came to know that since FII were withdrawing money from stock market, India’s economy has been shaken. It means our great miracle economy of the world depends on FII fund and survives due to FII fund.
Some intelligent persons tell that due to financial problems in USA, they had blocked payment of exports made by Indian businessmen. This resulted in liquidity crisis in many countries. Some says that export of goods has suffered a lot.
Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?
If not how did it result in liquidity crisis? When foreign countries stop import, real problem may arise in selling exportable goods in domestic market.
If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.
CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?
Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.
Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?
If domestic demand has not increased, how the said affected units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?
Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?
Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?
If it is true, government should admit that the current price rise is nothing but the making of the government.
Income of poor people did not rise but prices showed relentlessly rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.
Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.
Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.
If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.
If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.
Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.
It is ironical that the government which is talking of social inclusion to attract Indian voters is also talking of merger of banks or infusion of fresh capital into PSU banks to enable them to compete with global banks which caused crisis in USA and other countries. When they plead consolidation of banks in raising exposure limit of the banks they perhaps forget the interest of common men or the issue of social inclusion.
Can I conclude now that the fear of global recession in India was artificial and virtual and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?
Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009
Thursday, February 18, 2010
Respected Manmohan Singh
I am not an economist, nor an expert in finance management of the government. I however try to project my feelings. Liquidity crisis or Sub Prime Crisis occurred in USA and other European countries. How did it affect Indian economy in the year 2008 which forced Indian Government to sanction stimulus package in line with what Obama did in USA.
Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?
If not how did it result in liquidity crisis? When foreign countries stops import , real problem may arise in selling exportable goods in domestic market.
If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.
CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?
Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.
Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?
If domestic demand has not increased, how the said affects units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?
Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?
Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?
If it is true, government should admit that the current price rise is nothing but the making of the government.
Income of poor people did not rise but prices showed relentless rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.
Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.
Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.
If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.
If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.
Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.
Can I conclude now that the fear of global recession in India was artificial and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?
Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009
Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?
If not how did it result in liquidity crisis? When foreign countries stops import , real problem may arise in selling exportable goods in domestic market.
If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.
CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?
Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.
Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?
If domestic demand has not increased, how the said affects units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?
Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?
Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?
If it is true, government should admit that the current price rise is nothing but the making of the government.
Income of poor people did not rise but prices showed relentless rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.
Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.
Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.
If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.
If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.
Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.
Can I conclude now that the fear of global recession in India was artificial and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?
Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009
Friday, February 12, 2010
Will RBI look into
Number of officers serving in a bank are working in Metro area since joining and on the other hand hundreds of others are forced to work in rural areas since joining?
Will RBI conduct sincere audit of at least ten big and old branches of top five banks in the state of Jharkhand and conduct of executives of that bank to know and understand how much deep rooted corruption is prevailing in banks not only in the term of money but human values
Will RBI conduct sincere audit of at least ten big and old branches of top five banks in the state of Jharkhand and conduct of executives of that bank to know and understand how much deep rooted corruption is prevailing in banks not only in the term of money but human values
Wednesday, February 10, 2010
Economic Growth
EVERYDAY ONE VIP OR THE OTHER, EITHER FORM GOVERNMENT OF INDIA OR RBI OR CONGRESS PARTY WILL TALK OF GDP GROWTH AND Financial Newspaper PUBLISH THE SAME in their NEWSPAPER.
Fact is that ninety nine point nine percent of Indian population do not read or do not understand newspaper and they at least do not understand what GDP is, whether it is Gross domestic Product of economists or Garibi Development Project of ruling government or Gross Domestic Poverty of the country which is rising at 6 to 9%. Common men know and understand easily that Poor are growing poorer, number of poor persons is increasing year after year and rich people are growing riche and richer. Basket of goods bought b majority of Indians is shrinking day by day due to decreasing earning and increasing prices
Where from GDP growth claimed by Government after all comes from?
How GDP growth is calculated and how does it reflect the true picture of people living below poverty line?
Even poverty line is based on all criteria. If poverty line is redefined keeping in view current price rise and change in nature of essential goods or based on actual need of calorie intake I hope astonishing and astronomical rise in poverty will expose the hollowness of GDP growth hyped by economists, media persons and ruling echelons.
Fact is that ninety nine point nine percent of Indian population do not read or do not understand newspaper and they at least do not understand what GDP is, whether it is Gross domestic Product of economists or Garibi Development Project of ruling government or Gross Domestic Poverty of the country which is rising at 6 to 9%. Common men know and understand easily that Poor are growing poorer, number of poor persons is increasing year after year and rich people are growing riche and richer. Basket of goods bought b majority of Indians is shrinking day by day due to decreasing earning and increasing prices
Where from GDP growth claimed by Government after all comes from?
How GDP growth is calculated and how does it reflect the true picture of people living below poverty line?
Even poverty line is based on all criteria. If poverty line is redefined keeping in view current price rise and change in nature of essential goods or based on actual need of calorie intake I hope astonishing and astronomical rise in poverty will expose the hollowness of GDP growth hyped by economists, media persons and ruling echelons.
Subscribe to:
Posts (Atom)