Bharat Rakshak Forum Announcement

Hello Everyone,

A warm welcome back to the Bharat Rakshak Forum.

Important Notice: Due to a corruption in the BR forum database we regret to announce that data records relating to some of our registered users have been lost. We estimate approx. 500 user details are deleted.

To ease the process of recreating the user IDs we request members that have previously posted on the BR forums to recognise and identify their posts, once the posts are identified please contact the BRF moderator team by emailing BRF Mod Team with your post details.

The mod team will be able to update your username, email etc. so that the user history can be maintained.

Unfortunately for members that have never posted or have had all their posts deleted i.e. users that have 0 posts, we will be unable to recreate your account hence we request that you re-register again.

We apologise for any inconvenience caused and thank you for your understanding.

Regards,
Seetal

Indian Economy News & Discussion - Aug 26 2015

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
vijayk
BRF Oldie
Posts: 3048
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 24 Oct 2017 17:45

Big bonanza for banking sector

Government officials listed out plans to increase spending on infrastructure projects such as the construction of 34,800 km of roads under the BharatMala programme with an investment of Rs 5,35,000 crore. This is indeed an encouraging move and, probably, the only option with the government right now to push growth when private investments are really not taking off. Top finance ministry officials stressed on strengthening the banking sector by recapitalizing public sector banks and enabling them to lend to key productive sectors in the economy. But, the big announcement came when officials talked about the cabinet approval of Rs2.11 lakh crore recapitalization package for state-run banks, of which Rs1.35 lakh crore will come from recap bonds and Rs76000 crore from budgetary support and market-raising. If this plan becomes a reality as envisaged, this will be a big booster dose not just to the banking sector but to the larger economy as well. One needs to wait for the details though.

vijayk
BRF Oldie
Posts: 3048
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 24 Oct 2017 17:45

Live: 'NPAs were kept hidden for years; transparency came only after 2015,' Arun Jaitley on increasing bad loans

Atish
BRFite
Posts: 410
Joined: 07 Jul 2000 11:31
Location: San Francisco, CA, USA

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Atish » 24 Oct 2017 19:03

This is absolute horseshit. In a land where you need production licenses and are punished if you produce more than capacity and compare the companies in that place to Japan or Germany is beyond idiotic.

Whatever profession you are in, are you the #1 dude in that profession. Are Indians (within India) #1 in the same if not you particularly. If not are the reasons lack of innate ability or some starnge mental shortcoins or are the reasons possibly different. The last thing one should claim is knowing some other individual's mind or mindset. You probably don't know your parents, spouse or kids that well.

nandakumar
BRFite
Posts: 728
Joined: 10 May 2010 13:37

Re: Indian Economy News & Discussion - Aug 26 2015

Postby nandakumar » 24 Oct 2017 19:37

"Tatas keep making products which are 'just enough' for the market and keep pushing it until people move towards something else. Look at Tata Indica, which was similar to the Hyundai santro when both of them hit the market. Look at the quality of the cars Hyundai makes now. Hyundai matches the japanese in terms of quality and models worldover now while Tatas are still stuck in Indica mode with minor facelifts here and there and an engine/platform change once in a decade. They are an 'also ran' in every field they have entered, be it Motors, Croma, Trent, Telecom, Chemicals, Steel and the list is endless..."
This is no doubt that it is a valid point about cars. But how does one explain the fact after so many years Benz, Volvo, Man etc are not able to beat the Tatas or Ashok Leyland in commercial vehicles?
Last edited by nandakumar on 24 Oct 2017 19:38, edited 1 time in total.

Kakkaji
BRF Oldie
Posts: 3030
Joined: 23 Oct 2002 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Kakkaji » 24 Oct 2017 19:38

Tata nano was a paradigm-changing product. Too bad it did not find market acceptance. :(

jpremnath
BRFite -Trainee
Posts: 29
Joined: 18 Dec 2016 21:06

Re: Indian Economy News & Discussion - Aug 26 2015

Postby jpremnath » 24 Oct 2017 20:24

nandakumar wrote:This is no doubt that it is a valid point about cars. But how does one explain the fact after so many years Benz, Volvo, Man etc are not able to beat the Tatas or Ashok Leyland in commercial vehicles?


Well because their trucks are much cheaper and spare parts also cost less...Which means for the customer the running maintenance is less...So both Tatas and Leyland can rule the market..But there is already a gradual shift towards larger capacity trucks in the market which is why you see lots of Bharat Benz trucks of late...In the long run as logistics market become more organised, our desi trucks will see their market go down unless they inveSt and improve the quality of their products...

I really want our companies to do better...It's just that they make it so hard for us to root for them..

jpremnath
BRFite -Trainee
Posts: 29
Joined: 18 Dec 2016 21:06

Re: Indian Economy News & Discussion - Aug 26 2015

Postby jpremnath » 24 Oct 2017 20:33

Kakkaji wrote:Tata nano was a paradigm-changing product. Too bad it did not find market acceptance. :(


True...That was more of a marketing disaster...But its been 8 years and they are still trying to push it down the customers throat without any major improvement...Atleast create a new car in the same platform with new name and additional features...The possibilities were there...But all Tatas did was create more funkier ads and keep selling it hoping people will gradually warm up to it...

Car models sometimes flunk...It has happened to every manufacturer out there ...They just get up and move on...Bring some new product...But that's not what indian companies do...They just persist with and tolerate failures...I am glad Tatas have infused some energy into their new cars...But tiago, tigor and the others still look modified indica's and indigos...They need to hire some world-class designer from outside...That's what Kia and Hyundai did...They swallowed their pride and hired european design team and their cars are now matching the best ...

Atish
BRFite
Posts: 410
Joined: 07 Jul 2000 11:31
Location: San Francisco, CA, USA

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Atish » 24 Oct 2017 21:31

This whole idea of putting everything down to company culture is WRONG. Its even more WRONG ALWAYS WRONG to put it to national culture. Its not possible for example that GM had CEO after CEO who was a dolt, and Toyota had one genius after another. They work in different environments totally. If The US Big 3 did not have to contend with UAW there was no reason they could not have caught up to great extent with Japanese firms. Please do not think like Trumpets and please do not perpetuate these neoracist ideas.

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 24 Oct 2017 22:39

ssundar wrote:I am referring to the basic ability to create an Indian branded mobile phone, tablet or smart watch with Indianized content with language localization capabilities and mass manufacturing it. Couldn't a Tata or Reliance create an Indian rival to the Galaxy series? China has already built many such brands whose launch dates are as anticipated globally as those of Samsung or Apple.

It does take concerted support from the government. But the Indian conglomerates are flush with enough money to do something like this.

Brands follow from the ability to actually build product on scale. Otherwise you have badge engineered imports, like Micromax and co did. There's a lot of emphasis on branding (which is essentially a process of implying greater value to a product), but not enough on actually creating complete products at home.

As a result, the focus is on higher end value creation in the services domain , rather than labour intensive manufacturing. Focusing on brands before we have a product building base - even a nameless ODM system where we build products that others put their names upon - means we'll remain an economy trying to skip into a services-driven developed economy profile without considering that we MUST employ the large number of people who are exiting primary economic activities (aka agriculture). To do that, we must focus on increasing the labour intensity of economic growth, i.e. focus on maximizing employment per unit of economic growth.

chaitanya
BRFite
Posts: 134
Joined: 27 Sep 2002 11:31
Location: US
Contact:

Re: Indian Economy News & Discussion - Aug 26 2015

Postby chaitanya » 25 Oct 2017 00:32

Sorry if this is OT, but I think it makes sense to be here in the context of what is being discussed.

While we can discuss the current state of innovation (or the lack thereof) and what caused it, I think its also important to identify avenues to change the status quo. While India is far better off than it once was, I think everyone can agree that more needs to be done.

To this end, I think a very cost-effective solution to kickstarting innovation and tinkering is the use of national competitions, such as the DARPA Grand Challenge, the Netflix Prize, and Google XPrize (which is well documented in this forum). These challenges have been highly successful in encouraging the development and/or refinement of new technology; the DARPA Grand Challenge spurred the development of autonomous vehicles while the Netflix Prize catalyzed interest in machine learning (specifically recommender systems). However, in my opinion, their most significant contribution is the enrichment of the human capital of the participants, which generally include students.

I feel that such competitions can be extremely useful in driving innovation in India. Using a small amount of money, hordes of interested and motivated students and engineers will start tinkering away. Most will not succeed, some will come up with usable tech, and a few might create viable products. I feel that correctly designed competitions can be used to address both civilian and military technology needs in India and at least attempt to nucleate some industries. The government can fund these competitions and possibly even provide seed money for commercializing the technology.

jpremnath
BRFite -Trainee
Posts: 29
Joined: 18 Dec 2016 21:06

Re: Indian Economy News & Discussion - Aug 26 2015

Postby jpremnath » 25 Oct 2017 00:49

Atish wrote:This whole idea of putting everything down to company culture is WRONG. Its even more WRONG ALWAYS WRONG to put it to national culture. Its not possible for example that GM had CEO after CEO who was a dolt, and Toyota had one genius after another. They work in different environments totally. If The US Big 3 did not have to contend with UAW there was no reason they could not have caught up to great extent with Japanese firms. Please do not think like Trumpets and please do not perpetuate these neoracist ideas.


I don't understand why you are taking this as an insult on india or indians...Have i implied anywhere that is the case?...I was talking about grand old boys of corporate india like Tatas and birlas. I know that they were constrained during the license raj days...But those were 25 years back..What have they brought new in the 3 decades since...? Look at the korean chaebols...They had a much smaller market to grow on...But did it stop them from becoming world beaters?...They showed relentless Growth achieved through sheer perseverance and hunger for excellence... Tatas and their ilk in India had all the potential to beat those companies with their sound balance sheets and comfortable cash balance, but they are nowhere near them now...Yes they have a turnover close to 100 billion dollars...But take out TCS and Jaguar Landrover, you can see them sink in value...This is even after the umpteen companies in the group.

In contrast the new india is more promising. The new age entrepreneurs hitting the manufacturing industries are leaner and more focused. They show the hunger that the big ones lack ..Look at the e bike startup Ather.these guys have took the plunge to an industry which has high entry barrier. they are also focused and is not rushing their product to market without making sure they iron out all the kinks.

Our rapid growth in the future will be based on how this new gen of india inc takes us forward.

schinnas
BRFite
Posts: 1237
Joined: 11 Jun 2009 09:44

Re: Indian Economy News & Discussion - Aug 26 2015

Postby schinnas » 25 Oct 2017 01:04

jpremnath wrote:
Kakkaji wrote:Tata nano was a paradigm-changing product. Too bad it did not find market acceptance. :(


True...That was more of a marketing disaster...But its been 8 years and they are still trying to push it down the customers throat without any major improvement...Atleast create a new car in the same platform with new name and additional features...The possibilities were there...But all Tatas did was create more funkier ads and keep selling it hoping people will gradually warm up to it...

Car models sometimes flunk...It has happened to every manufacturer out there ...They just get up and move on...Bring some new product...But that's not what indian companies do...They just persist with and tolerate failures...I am glad Tatas have infused some energy into their new cars...But tiago, tigor and the others still look modified indica's and indigos...They need to hire some world-class designer from outside...That's what Kia and Hyundai did...They swallowed their pride and hired european design team and their cars are now matching the best ...


Tiago and Tigor are on entirely new platform - differenrt engine and chasis and body design and interiors and look nothing like indica or indigos. It is reflecting in the sales and customer satisfaction. Tiago is now one of the top 10 best selling cars in India. One should give credit where its due. Tatas have totally re-invented their passenger car segment with Tiago, Tiger, Hexa and Nexon. All these new Tata cars now compete on features and quality and design with the best in their segments and compare very favorably. They have done great job in design and quality control in recent years. Not sure if its a positive side effect from purchase of Jaguar and its assets.

Their Nexon compact SUV is simply the best in its segment in terms of features, futuristic design and value for money. It will be another sales success, perhaps even better than Tiago. But unfortunately it seems old perceptions die hard, going by some opinions on Tata cars in this forum.

Raveen
BRFite
Posts: 417
Joined: 18 Jun 2008 00:51
Location: 1/2 way between the gutter and the stars
Contact:

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Raveen » 25 Oct 2017 03:40

jpremnath wrote:
Kakkaji wrote:Tata nano was a paradigm-changing product. Too bad it did not find market acceptance. :(


True...That was more of a marketing disaster...But its been 8 years and they are still trying to push it down the customers throat without any major improvement...Atleast create a new car in the same platform with new name and additional features...The possibilities were there...But all Tatas did was create more funkier ads and keep selling it hoping people will gradually warm up to it...

Car models sometimes flunk...It has happened to every manufacturer out there ...They just get up and move on...Bring some new product...But that's not what indian companies do...They just persist with and tolerate failures...I am glad Tatas have infused some energy into their new cars...But tiago, tigor and the others still look modified indica's and indigos...They need to hire some world-class designer from outside...That's what Kia and Hyundai did...They swallowed their pride and hired european design team and their cars are now matching the best ...



Ironic you ask Tatas to use European designers and then cite the European designed Indica as an example of their failures. Maybe a fact check is required? India is famous for hearsay amplification, perfect example of that.

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 25 Oct 2017 07:04

No more on car models here . There’s an autos thread.

vina
BRF Oldie
Posts: 6018
Joined: 11 May 2005 06:56
Location: Doing Nijikaran, Udharikaran and Baazarikaran to Commies and Assorted Leftists

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vina » 25 Oct 2017 10:00

vijayk wrote:Big bonanza for banking sector

Government officials listed out plans to increase spending on infrastructure projects such as the construction of 34,800 km of roads under the BharatMala programme with an investment of Rs 5,35,000 crore. This is indeed an encouraging move and, probably, the only option with the government right now to push growth when private investments are really not taking off. Top finance ministry officials stressed on strengthening the banking sector by recapitalizing public sector banks and enabling them to lend to key productive sectors in the economy. But, the big announcement came when officials talked about the cabinet approval of Rs2.11 lakh crore recapitalization package for state-run banks, of which Rs1.35 lakh crore will come from recap bonds and Rs76000 crore from budgetary support and market-raising. If this plan becomes a reality as envisaged, this will be a big booster dose not just to the banking sector but to the larger economy as well. One needs to wait for the details though.


1. This is an increase in the fiscal deficit. Okay, it is done off the books, so "officially" the Govt will claim the fiscal deficit is not touched.No one will buy that story, especially rating agencies and anyone with any sense.

2. However, I do agree that this a case where the "good quality" of spending will happen. This is not the same of doing fiscal deficit to grant loan waivers or MNREGA or whatever dole patronage . So there is some plus here

3. There is a massive blow out spike in the PSU bank stocks, especially the ones in the F&O space. SBI up 20% PNB up 30%, Can Bank, up 20% , BankBaroda 25% etc as I write

4. However, there is possibly more pain in terms of NPA increase going forward. The power sector is the major problem and approx 20% of the NPAs there are recognised per what i see.

5. What this recapitalisation will do is keep the lights on at some of the smaller and weaker PSU banks that will otherwise go down because of lack of capital adequacy per Basel III norms.

6. I am not sure where the demand for credit is. Okay, if the extra lending is going to go into the Govt road projects, it will be rinse and repeat of the same old mistakes that led led the banks into this problem in the first place.

7. So all in all, yes a positive , a plan to keep the banks afloat and not go down under.

6. Mercifully the Govt ignored the Cow + Marx types and their "advice" on letting go of Basel III norms and just go ahead and lend. Saner counsel prevailed. If only the Govt had ignored the hare brained DeMo and other stuff.

7. The privatisation program of the Govt has to be rammed through now. The markets are good. Go ahead and divest a whole lot of assets that are out there, GIC, Oriental and other insurance companies . Compare that with the listings of the private guys and their insurance arms (ICICI Prulife, HDFC Life and others)

8. . However, there is no strategy beyond the immediate "keep the lights on" thing. The only solution that can be there for the PSU banks is PRIVATISATION . Once they are nursed back to health, the Govt should simply SELL The banks lock stock and barrel and EXIT. Otherwise, it will be the same rinse-repeat of this every 15 years.

9. We have a serious problem with the economics and ability to finance long term- long gestation projects , especially infrastructure. The BANKS are NOT the way to do it. They will have a huge asset liability mismatch in terms of tenor.

10. India needs specialised Development Financial Institutions - NOT Govt owned, which can access long term savings (pensions etc are the perfect asset class for that). However, Pension as "dole" , govt Baboons pension contribution being a "line entry" (rather than actual cash), is simply no way to do it.

11. Inflation needs to be KILLED. If you want long term finance at sensible rates (the US 30 year is trading at a yield of JUST 2.934% , which is low , but even in best of times a 10% max, the largest spikes I can see is 14% during the mid 80s when inflation was at highs in the US).

12. Unless , you have fiscal discipline, none of this will work. Marx types (both + Cow and - Cow) types will simply kill it at the next turn of events.

nandakumar
BRFite
Posts: 728
Joined: 10 May 2010 13:37

Re: Indian Economy News & Discussion - Aug 26 2015

Postby nandakumar » 25 Oct 2017 10:49

The SLR (the % of deposits that banks must necessarily invest in govt securities) is currently pegged at 23% of their deposits. But bank's are holding close to 30% of their deposits base in such securities. So the notion that bank's are unable to lend because they are undercapitalised is ab initio false. The 1.3 lakh crore special bonds will end up being subscribed to by banks themselves. SBI will pick up UCO bank's and SBI will return the complement with UCL bank's and so on.

jpremnath
BRFite -Trainee
Posts: 29
Joined: 18 Dec 2016 21:06

Re: Indian Economy News & Discussion - Aug 26 2015

Postby jpremnath » 25 Oct 2017 12:30

Suraj wrote:No more on car models here . There’s an autos thread.


Have moved my replies to the Auto Thread...

I talked about Tatas only to show how disconnected the Old India Inc is with the rest of the world when it comes to hunger for growth. I dont have any issues with them personally. The real future of Indian Industry will be built by the companies who are dismissed as Mid cap and Small cap by our financial journos. You can find real gems in some of them, Engineering industries and not consulting/IT...growing by leaps and bounds and creating their own niche in the global supply chain. They are focused and are aware of their core expertise. Seeing them, i am hopeful that in the not so future we will start seeing our own Mittelstand...

Over and out!!....

JayS
BRF Oldie
Posts: 2602
Joined: 11 Aug 2016 06:14

Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 25 Oct 2017 12:47

jpremnath wrote:
Suraj wrote:No more on car models here . There’s an autos thread.


Have moved my replies to the Auto Thread...

I talked about Tatas only to show how disconnected the Old India Inc is with the rest of the world when it comes to hunger for growth. I dont have any issues with them personally. The real future of Indian Industry will be built by the companies who are dismissed as Mid cap and Small cap by our financial journos. You can find real gems in some of them, Engineering industries and not consulting/IT...growing by leaps and bounds and creating their own niche in the global supply chain. They are focused and are aware of their core expertise. Seeing them, i am hopeful that in the not so future we will start seeing our own Mittelstand...

Over and out!!....

+1

vijayk
BRF Oldie
Posts: 3048
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 25 Oct 2017 21:12

Image

achoudhury
BRFite -Trainee
Posts: 92
Joined: 06 Oct 2016 07:43

Re: Indian Economy News & Discussion - Aug 26 2015

Postby achoudhury » 26 Oct 2017 05:47

So finally, one of the major issue of Bank NPA is now being tackled on. But GoI should not go for just a recapitalization alone. One time re-infusion of capital will not solve the systemic issues of politically directed lending. Hence GoI must come up with with entire basket of Banking Reforms which should include Consolidation, Privatization and also create a monitoring mechanism from newly created Banking Boards Review which should have powers to enforce regulations backed by legislative teeth. Also make sure that BBR is directly responsible to parliament and not some ministry. Basically create a regulatory and legislative checks and balances, which will not allow non-transparent lending but at the same time it will give parliament and GoI flexibility with respect to priority sector lending. Also, make sure that Each and every public sector bank should have an Independent Board of Director. Start with one or two banks immediately. PNB and BoB should be a good choice. Also, 20+ public banks is way too many. Consolidate and privatise some after some of the banks are brought back to health. Divest as much as possible. CEA is right about this. We should not have more then 5. In fact, I would say 3 is way too many.

One more thing, Recapitalization bond should not be treated as off balance sheet. That kind of jugglery fools no one. Take the politically tough but correct action to recognise them and account for them properly. They can use some innovation in this regard like amortize this loan in GoI books over course of next 5-7 years rather then one single year. This will not blow up the FISC but still makes GoI responsible for this bail out.

hanumadu
BRF Oldie
Posts: 3834
Joined: 11 Nov 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 26 Oct 2017 09:16

Image

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 26 Oct 2017 11:07

hanumadu, can you post the source link ?

hanumadu
BRF Oldie
Posts: 3834
Joined: 11 Nov 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 26 Oct 2017 12:08

Suraj wrote:hanumadu, can you post the source link ?


Got it from twitter. Will try to find a source for the figures.

ssundar
BRFite
Posts: 629
Joined: 15 Aug 2016 02:33

Re: Indian Economy News & Discussion - Aug 26 2015

Postby ssundar » 26 Oct 2017 12:22

Suraj wrote:hanumadu, can you post the source link ?


Same request to vijayk.

ssundar
BRFite
Posts: 629
Joined: 15 Aug 2016 02:33

Re: Indian Economy News & Discussion - Aug 26 2015

Postby ssundar » 26 Oct 2017 12:40

There have been occasional chatter on BRF about GoI using Big Data Analytics and AI to catch tax evasion post-DeMo. Recently saw a news article where a Finance Ministry official say that AI was used to identify shell companies.

However, there has been total silence about the history and roadmap of Big Data Analytics and AI in GoI. Are there any articles, papers, etc. that Gurus here can share about AI on GoI?

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 26 Oct 2017 12:55

Since the bank recapitalization plan story hasn't actually been quoted here but merely paraphrased:
Govt clears Rs 2.11 lakh crore bank recapitalisation plan
With economic revival being big on the agenda, the government on Tuesday unveiled a Rs 2.11-lakh crore support for public sector banks (PSBs), struggling with mounting bad loans, in order to spur “genuine” infrastructure lending for upcoming mega projects.

The move is aimed at creating jobs and boosting economic growth, which slumped to a three-year low of 5.7 per cent in the first quarter of the current financial year.

Facing a resource crunch and the target to rein in its fiscal deficit at 3.2 per cent of gross domestic product in FY18, the government will pump in Rs 1.35 lakh crore of this recapitalisation through bonds. Whether this would have a bearing on the fiscal deficit or not will depend on the contours of the bond, which are still to be decided.


The government will soon come out with “recapitalisation bonds” to support public sector banks, which account for 70 per cent of non-performing assets (NPAs) in the banking system at Rs 7.33 lakh crore.

The support, to be extended over a two-year period, is aimed at “cleaning up the legacy of NPAs”.

Another Rs 76,000 crore will come from budgetary support and banks tapping the market.

While Rs 18,000 crore will come from the government’s recapitalisation plan under Indradhanush, banks will raise the remaining Rs 58,000 crore from the market by diluting government equity.

“The strengthening of public sector banks is in the larger interests of the economy,” said Finance Minister Arun Jaitley after announcing the package.

hanumadu
BRF Oldie
Posts: 3834
Joined: 11 Nov 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 26 Oct 2017 13:44

hanumadu wrote:
Suraj wrote:hanumadu, can you post the source link ?


Got it from twitter. Will try to find a source for the figures.




https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!4

Go to the above link and drill down. I forgot what links I clicked, but before I could gather more information, the site froze. The site is extremely slow and when you click on a link providing data, the url doesn't update so a direct link for the data could be provided.


The total Bank Credit of Nationalised Banks.
10982.89 billions (10,98,289 crores) - March 2008
30018.27 billions (30,01,827 crores) - March 2014
33601.11 billion (33,60,111 crores) - March 2016

As you can see there is a 3 fold increase from March 2008 to March 2014. The figures don't exatly match in the graph above but the scale matches.
Apart from Nationalised Banks, there was data for Regional Rural Banks, Co operative banks, Urban co operative banks. Then there is State Bank of India and its subsidiaries. If the Bank Credit for all these are added up, the figure will come closer to the one in the graph. But the figures for just the Nationalised Banks are a very good indication of credit growth from 2008 to 2014.

vina
BRF Oldie
Posts: 6018
Joined: 11 May 2005 06:56
Location: Doing Nijikaran, Udharikaran and Baazarikaran to Commies and Assorted Leftists

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vina » 26 Oct 2017 15:31

{deleted link}

Mihir Sharma too says what I said here earlier. You MUST do Privatisation (or you will have the periodic bad loan write off again like clock work in 10 to 12 years).

As my Motto says - Nijikaran, Udharikaran & Bazaarikaran . So what if it is red rag to the Commies (who wave a red rag anyway in their flag posts)

Prasad
BRF Oldie
Posts: 6576
Joined: 16 Nov 2007 00:53
Location: Chennai

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prasad » 26 Oct 2017 16:19

So what timeframe would you consider when you talk about privatisation? You can't post it on ebay and expect all 10 big PSBs to get sold in 24hrs.

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 26 Oct 2017 20:28

Ugh, please , no quoting Mihir Sharma on this thread . Who’s next ? Pankaj Mishra ?

Atish
BRFite
Posts: 410
Joined: 07 Jul 2000 11:31
Location: San Francisco, CA, USA

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Atish » 26 Oct 2017 22:06

Baap ka maal hai kya? Is it so easy. An eminently sensible long awaited and all party consensus move like GST is a major political liability.

And you are talking about taking on the entire might of labor unions, bureaucracy and almost each and every "intellectual", academic and leftist institution and individual in the country in denationalizing banking.

Even if its politically feasible, you need a new Bill, maybe an Amendment and you are far from a majority in RS. Ye Mihir Sharma, Bhanupratap ka kya jaata hai pontificating me.

Any Indian like NaMo who tries to do anything good in this country will be vilified, demonized and abused by everybody including his own party and supporters. in fact I am beginning to think only somebody who has given up all ego, family, duniya, maya and is selflessly devoted to service of poor and motherland should even attempt it. Frankly its not worth it. Psychologically speaking a soldier's task in running over a minefield is easier perhaps.

SBajwa
BRF Oldie
Posts: 4492
Joined: 10 Jan 2006 21:35
Location: Attari

Re: Indian Economy News & Discussion - Aug 26 2015

Postby SBajwa » 26 Oct 2017 22:11

Before banking the white elephants like Air India needs to be privatized.

A_Gupta
BRF Oldie
Posts: 9790
Joined: 23 Oct 2001 11:31
Contact:

Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 26 Oct 2017 22:27

This image seems to be from
http://www.livemint.com/Opinion/Nx22oUw ... track.html
Sun, Aug 30 2015. 08 29 PM IST
India is on the right track

vijayk wrote:Image

A_Gupta
BRF Oldie
Posts: 9790
Joined: 23 Oct 2001 11:31
Contact:

Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 26 Oct 2017 22:32

The below is a cropped version of this image from the BJP twitter account:
Image

hanumadu wrote:Image

Sicanta
BRFite
Posts: 1106
Joined: 15 Aug 2016 11:16

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Sicanta » 27 Oct 2017 00:42

Its not as if slow but steady reforms are not taking place. Labour unions are no longer what they used to be in banking sector. Reason why reforms are being pushed through. Apart from known ones like BBB to institute management reforms, leading psb's are moving ahead with new rules and regulations. Like individual targets to officers and clerks. In few years, apart from the minimum pay, anything over it will depend on their performance against this parameter.

As far as i know, salary rise is due to bankers, after government employees (as it is at a gap of 5 years) And banks have started negotiations for only upto scale 3. Anything above it will now be left upto the discretion of banks. Plus the gov is already moving ahead with reducing their shareholding % in psb's, down to 52%. Apart from recapitalization bonds, banks are asked to raise capital from market. And sbi, BoB are already part of soon to be unveiled ETF - Bharat 22

Divestment is certainly taking place

vijayk
BRF Oldie
Posts: 3048
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 27 Oct 2017 03:51

Yes. Naked privatisation is very difficult. People don't get it. The reason why vajpayee lost is due to A run Sour (ie) aggressive Disinvestment.

not just commies, Pappu will go shouting Ambani/Adani taking over banks. The same Mihir useless Sharma will be abusing Modi how he handed over banks to his buddies in NYT,WSJ.

Austin
BRF Oldie
Posts: 19748
Joined: 23 Jul 2000 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 27 Oct 2017 11:47

Bank Re-Capitilisation is like throwing Good Money at Bad at the cost of raising Debt ....Similar to our QE

Instead they should let Free Market take over and let the bad bank fail/merge/privatised instead of Bailing them out as nothing good will come out of it other then raising Stock Market which it did.

vina
BRF Oldie
Posts: 6018
Joined: 11 May 2005 06:56
Location: Doing Nijikaran, Udharikaran and Baazarikaran to Commies and Assorted Leftists

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vina » 27 Oct 2017 12:03

Many Private Banks have been lying especially about NPAs and thereby overstating their profits.

Telling Fibs Again , Axis Bank ? -- Overstated profits by 24% and underreported 9 NPA accounts
Oh No, No, No - Yes Bank -- Overstated profits by 44% and underreported the same 9 NPA accounts. Yes Bank has a lower loss buffer for the same accounts. Axis now seems to have set aside 65% for the same 9 accounts now.

A classic case of governance failure. In any civilised country, the CEO and the board of the Banks will be facing a class action suit and would be personally liable under the Sarbanes-Oxley act. Here the board and the CEOs are sitting pretty. No restating past profits, no liability .. NOTHING.

SHAME

Suraj
Forum Moderator
Posts: 10930
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 27 Oct 2017 21:58

vina wrote:A classic case of governance failure. In any civilised country, the CEO and the board of the Banks will be facing a class action suit and would be personally liable under the Sarbanes-Oxley act. Here the board and the CEOs are sitting pretty. No restating past profits, no liability .. NOTHING.

Lets not go overboard with such talk. In so called civilized countries they package and sell subprime turd as AAA grade mortgage backed securities. And the ratings agencies work with the companies to keep up the charade. Enough pontificating about 'civilized countries' in this context. There aren't any. Everyone builds up a tower of cards that serves their ends.

vijayk
BRF Oldie
Posts: 3048
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 28 Oct 2017 00:24

^^ True.

What QE1/2/3. $1.5 Trillion worth of buying bad mortgages from the banks in addition to $1 Trillion of TARP funds. Just these 2 actions raised US debt from $10 T to $13 Trillion


Return to “Technology & Economic Forum”

Who is online

Users browsing this forum: No registered users and 9 guests