---------- Forwarded message ---------- From: Walter Fernandes <[email protected]> Date: 12 December 2013 11:33 Subject: Re: [Janshakti] AIBEA blows the whistle on bad loans of Indian banks To: [email protected]
The identity of most defaulters is known already. In the 1990s a major conglomeration of industry found that the nationalised had 100,000 crores in bad loans and suggested that three banks be closed down. Their employees Union studied the matter and stated that 60 per cent of the bad loans were for companies owned by three main leaders of that association. The matter was hushed up. The same is happening today. The party in power does not matter. Then it was NDA today it is UPA but all of them are guided by the economic vested interests. The only time I know when action taken was in the 1980s when the Indira Gandhi Government got the companies with dead loans to turn the loans into shares in the company. That should be the solution but it would go against liberalisation which is the dogma of all the parties. Walter On 12 December 2013 11:13, Mukund Apte <[email protected]> wrote: > > > > Dear Sir, > If the identities of the of the partied that had taken the loans > becoming 'bad' and therefore due to 'write off' are exposed, lot of > 'unnecessary' knowledge and useful information may reach the public, is it > not? That is why at least PSU banks are not likely to disclose these > details. The information may prove to be explosive. isn't it? > With regards, > ------Mukund Apte > > > On Wed, Dec 11, 2013 at 5:09 PM, Sukla Sen <[email protected]> wrote: > >> >> >> [Write-offs of bad loans by PSU banks in the past seven years amount to >> a massive Rs 140,000 crore. If we include the bad loans of private banks >> and foreign banks and other financial institutions, the total bad loans are >> more than Rs 2,50,000 crore, says the AIBEA statement.] >> >> >> http://www.moneylife.in/article/aibea-blows-the-whistle-on-bad-loans-of-indian-banks/35554.html >> >> AIBEA blows the whistle on bad loans of Indian banks >> >> SUCHETA DALAL <http://moneylife.in/author/sucheta-dalal.html> | 10/12/2013 >> 06:06 PM | >> <http://moneylife.in/article/aibea-blows-the-whistle-on-bad-loans-of-indian-banks/35554.html#> >> Follow @suchetadalal <https://twitter.com/suchetadalal> >> >> *Bank union, AIBEA, demands that banks recover bad loans from wilful >> defaulters* >> >> Trade unions are usually quick to announce protests to demand higher >> wages or better working conditions. This time, however, the All India Bank >> Employees Union (AIBEA), one of the biggest employees unions in India, has >> decided to turn into a powerful whistleblower. On 5th December, AIBEA gave >> a call to ‘stop the loot of public funds’ and start recovery of bad loans. >> This is a welcome development. I have always held that the destruction of >> giant entities, such as Air India, Unit Trust of India, and giant public >> sector entities in telecom and engineering, is as much due to employee >> apathy as it is due to the loot by politicians and bureaucrats. AIBEA has >> signalled that it will name and shame defaulters, if necessary, to force >> banks to start acting tough and recover bad loans. The Reserve Bank of >> India (RBI), as the banking regulator, is fully aware of what is going on; >> but now, the unions are asking it to move from rhetoric to action. The >> AIBEA cites the overused quote about India having sick industries but no >> sick industrialists. It also quotes RBI governor, Dr Raghuram Rajan, who >> recently told banks, “You can put lipstick on a pig but it doesn’t become a >> princess. So dressing up a loan and showing it as restructured and not >> provisioning for it when it stops paying, is an issue. Anything which >> postpones a problem (rather) than recognising it, is to be avoided.” AIBEA >> points out that the top four bad loan accounts add up to a massive Rs22,666 >> crore, which include Kingfisher Airlines and Winsome Diamond and Jewellery >> Co. Will RBI stop the “systematic loot of public money” by recognising >> these as pigs with lipstick? >> >> The data collated and released by the AIBEA is a frightening indictment >> of the banking regulator and the finance ministry. While the government has >> been boasting about India having escaped the global financial crisis, how >> does it explain the four-fold increase in bad loans—from Rs39,000 crore in >> 2008 to Rs164,000 crore today? The creation of new bad loans is a >> mind-boggling Rs495,000 crore, according to AIBEA. And, corporate debt >> restructuring through provisioning, concessions, waivers, write-offs, >> concessions, one-time settlements (which are done multiple times), >> compromise proposals, etc, add up to a massive Rs325,000 crore. >> >> Write-offs of bad loans by PSU banks in the past seven years amount to a >> massive Rs140,000 crore. If we include the bad loans of private banks and >> foreign banks and other financial institutions, the total bad loans are >> more than Rs2,50,000 crore, says the AIBEA statement. Worryingly, it >> says, things have reached a point where management is making banks >> vulnerable by reducing the provisioning of bad loans. RBI has pointed out, >> and is aware, that the provision coverage ratio of India’s banking system >> has dropped from 55% to 45% as against a global average ratio of 70% to 80%. >> >> AIBEA’s demand will resonate with depositors who are being asked to pay >> higher charges for every service, to ensure higher profits for banks every >> quarter. AIBEA, for once, is on the same side as two big stakeholders of >> banks—bank customers and shareholders. Clearly, the call to publish the >> names of defaulters, to make wilful default a criminal offence, investigate >> collusion between banks and borrowers and the demand not to ‘incentivise >> corporate delinquency’, will find huge support among ordinary people. >> >> >> -- >> Peace Is Doable >> >> > > > -- > With regards to all, > ------Mukund Apte > > -- Dr Walter Fernandes Director of Research Animation and Resource Centre 178 (A) Thein Phyu Street (2nd floor) Botahtaung Township Yangon Myanmar Mobile 0095-943115021; 011-221828 __._,_.___ Reply via web post<http://groups.yahoo.com/group/Janshakti/post;_ylc=X3oDMTJxMGowOGtzBF9TAzk3MzU5NzE0BGdycElkAzg2NDUzMzkEZ3Jwc3BJZAMxNzA1MDY0MDA1BG1zZ0lkAzI0MzI5BHNlYwNmdHIEc2xrA3JwbHkEc3RpbWUDMTM4NjgyODUyOA--?act=reply&messageNum=24329> Reply to sender <[email protected]?subject=Re%3A%20%5BJanshakti%5D%20AIBEA%20blows%20the%20whistle%20on%20bad%20loans%20of%20Indian%20banks> Reply to group <[email protected]?subject=Re%3A%20%5BJanshakti%5D%20AIBEA%20blows%20the%20whistle%20on%20bad%20loans%20of%20Indian%20banks> Start a New Topic<http://groups.yahoo.com/group/Janshakti/post;_ylc=X3oDMTJlbmRncnUyBF9TAzk3MzU5NzE0BGdycElkAzg2NDUzMzkEZ3Jwc3BJZAMxNzA1MDY0MDA1BHNlYwNmdHIEc2xrA250cGMEc3RpbWUDMTM4NjgyODUyOA--> Messages in this topic<http://groups.yahoo.com/group/Janshakti/message/24313;_ylc=X3oDMTM2MXRvazVwBF9TAzk3MzU5NzE0BGdycElkAzg2NDUzMzkEZ3Jwc3BJZAMxNzA1MDY0MDA1BG1zZ0lkAzI0MzI5BHNlYwNmdHIEc2xrA3Z0cGMEc3RpbWUDMTM4NjgyODUyOAR0cGNJZAMyNDMxMw-->(4) Recent Activity: Visit Your Group<http://groups.yahoo.com/group/Janshakti;_ylc=X3oDMTJlMjdmM20xBF9TAzk3MzU5NzE0BGdycElkAzg2NDUzMzkEZ3Jwc3BJZAMxNzA1MDY0MDA1BHNlYwN2dGwEc2xrA3ZnaHAEc3RpbWUDMTM4NjgyODUyOA--> All wealth belongs to the Divine and those who hold it are merely its trustees-Aurobindo. 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