The Non-Performing Assets or NPA game by Indian banks, #AntiNational mafia goons

Anti Corruption • 3 January 2014
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Bad loans at public sector banks have increased to Rs 2.67 lakh crore last year. The Non-Performing Assets (NPAs) for the Indian banking system will deteriorate further as the lag effect on asset quality in relation to economic slowdown has not yet peaked. Oh, how sad and how technical? We thought Bank managers can be lured to pass loans in favor of high ROI ideas and glamorous looters, the likes of whom can never be the real bankrupts but eligible for state sponsored bankruptcy bumpers. Heck with public deposits, our return increases in proportion with Bank NPA! Budget concerns also needed to showcase once in a while, for the record. The NPA (not Nuclear Weapons Program) game is also profitable for private #SwachhBanks run by versatile money laundering cronies. Popular schemes are often used to soften the pricing terms, elongation of repayments, without improving the basic viability of the business or credibility of jugaadu cronies.

A jugaad explanation from the corporate looters is that these are tough times for the economy and given that they are not in a position to repay. The trouble is that this is always untrue, the real powerless ones in stress are ripped-off by the same bank's goons everyday just for a few thousand rupees. For hardly affected bank officers, it is not always possible to establish that a borrower has siphoned off the money or used it for a purpose other than the one which loan has been taken e.g. spin-off a tech startup or flamboyant pacific holidays or donate to strengthen the 2 party political system in a country of 125 billions! When a few dozen blue chip defaulters account for nearly 50% of the bad loans, cronies are on top and proxy lobbyists rule public budgets or civil conversations, real reformers are in sidelines, as always using sam / dam / dand / bhed - only god can help the masses, no human messiah can dare without being pushed to jungles for safe encounters using paid security mafia!

Primarily because of strategic lapses in the due-diligence carried out by banks before the loans were sanctioned, these rules does not apply to common loan-seekers who are ripped off daily and artistically threatened by goon agents for a few thousands of recovery profit. In first case, defaulter pays the commission and in later the public bank itself, nothing to lose either way. The bankers feel hurt as the NPA ratio moves up, some number gimmick is essential to justify public deposit loots before letting looters slip into laps of paid media jingoists in style. What is the real purpose of devising risk management strategies or academic budget pills to handle legal hurdles raised in the recovery process? Who knows?

DUE DILIGENCE & MONITORING AFTER SYSTEMATIC LOOT AND IGNORANCE:
They are now trying to gather and discuss formally some best practices to strengthen the due diligence process, credit appraisal for effective post sanction loan monitoring systems to minimize and mitigate the problems of increasing non-performing assets (NPAs). Third party agencies such as surveyors, engineers, advisors, consultants, financial analysts, and other verification agencies, etc., plays critical role in sharing the loan loot in amicable and legal ways, who also become most eligible to become part of the so-called civil society lobbying group, for economic analysis and shedding crocodile tears for scoring centuries on camera once in a while.

POST SANCTION LOAN MONITORING SYSTEMS AFTER CARELESS BANKING
Preferring #AntiNational jugaadu #ChorBhakts, instead of giving loans to deserving firms, persons and ideas, they are now in a hurry in identifying and dealing with stressed assets at an early stage to ensure that the level of NPAs in the system will go down. The thieves who got loans can either be caught or we say to depositors - "sorry they escaped".

NPA RISK MANAGEMENT RECOVERY PROCESS AFTER AGGRESSIVE LOAN GIVING
A swift recovery is the need of the hour considering the rising risks faced by the banking sector owing to decline in the asset quality. Examining the legal process and best practices for recovery based on feedback from its own clone of participants, responsible for extending loans for apparently unknown or murky socialization of losses like the fixed 20/20 cricket matches.

Economy

Comments (4)

Sudhir Panda

Comical #Cronieism of #Bhaktoists #Jugadulites - Lessons 4 #bhaktonomics #fakonomics #budget #economiccrime - #IndiasBiggestScam are elected #AntiNational extorting from such cronies in good times.. why only #VijayMallya, many such famous / successful suit boots are roaming free in every walks of life! Why not all Govt officials, private ‪#‎millionaires‬ & ‪#‎Feku420‬ politicians face ‪#‎anticorruption‬ ‪#‎polygraph‬ tests, digitally certified & neck sealed each year? ‪#‎RaiseTheBar‬

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  • Anti Corruption

    Invest hypes to accumulate more funds for cronies, tax terror to snatch economic freedom from poor with capital & wealth lure, awards for real chors. Another status-quo #budget - what change? Not #aliens! Fraud #DefaultingCompanies = #NPA bank #loans + mafia collection #jugaad + #AdFraud + #Populist Hype + #Crony + #Bhaktoists + #Jugadulite + add more yourself if your are the so-called right nationalists, and not a goon with mask!

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  • Anti Corruption

    Official views of a small but angry banking consumer: Dear Sir: Further to your reply, note that I do not have loot money to pay as per your selfie rules and wishes only. I do not want to analyze your jargons and policies. I am not able to pay anything that sounds unreasonable to me, no interest whatsoever can be paid. I have not taken any money for pleasure, personal gains or business - it was simply to pay account dues and close it forever. Write or call to settle at once, not to threat, harass or fool me anymore. I had paid huge interests since last 10+ years without any benefit, it may be okay as per rules of your types, not for me...

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  • Anti Corruption

    The story of how India’s biggest bank fraud went undetected for seven years includes an $81 million cyber-heist in neighboring Bangladesh, penny-pinching lenders and a series of missed opportunities.

    In 2016, after revelations that hackers had infiltrated the Bangladeshi central bank’s computer systems to siphon off money, its counterpart in India sensed a danger to its own banking system. The Reserve Bank of India reminded all the country’s lenders to ensure their computer networks were properly integrated with Swift, the global system used to transmit payment instructions in the Bangladesh theft.

    Unknown to the RBI at the time, a rogue employee at state-owned Punjab National Bank had allegedly been taking advantage of precisely that flaw in the Indian lender’s computer systems for five years, perpetuating a fraud that would eventually balloon to $1.8 billion, according to PNB’s account.

    “The biggest thing that didn’t happen was the linkage between Swift and the bank’s back-end software -- they didn’t talk,” said Abizer Diwanji, a financial services partner in India at the accountancy firm EY. “The ball was first dropped” when PNB missed a chance to reconcile the two systems, he said.

    As the fallout from the incident spreads and various government agencies move to investigate, one thing stands clear: the financial damage was exacerbated by a combination of inferior technology, weak risk management and insufficient regulatory oversight. Had the fraud been discovered a year earlier, the total amount would have been about $800 million lower.

    PNB alleges its former employee Gokulnath Shetty provided billionaire jeweler Nirav Modi and his associates with guarantees to obtain loans from abroad. Between 2011 and early 2017, guarantees worth 65 billion rupees ($1 billion) were issued without any collateral, followed by another 49 billion rupees over March to May last year, when Shetty retired, according PNB’s complaint that has been made public.

    “If a few people, or connivance of a group of people, can take a bank this large down to its heels with the kind of capital market implications one has been seeing, then it poses very serious questions,” he said. “At the core of it, it’s really governance and serious ban of crony capitalism and its elite supporters.”

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