Indian banks start to fail

[Fawadqasim1]

aur rafale loo

 

[Nityam]

 

[PakSword]

Wonderful sugar coating by a folk who claim to have a better understanding of a so called $2 trillion economy and taunting about IMF, first he need to explain how bad this situation would effect the TRUST of:

- Business community and common depositors on banking system and

- How bad it appears at international level when a common Joe note that "$2 trillion economy" is facing such level of liquidity crunch that banks are restricting the fund withdrawal for their depositors

- How bad it will appear to someone who have rudimentary level of understanding of economy and banking system, would he not check the non-performing advances of Indian Banking sector ?

- Would he not question the overall monitoring policy of Reserve Bank of India over the banking sector ?

- What would be the effect of this on the deposit of other banks ?

- What would be the effect of this on interest rate ?

- How would this effect on currency circulation ?

- How would it effect on Money Creation in Indian banking sector

- Would this not give raise to the trend of Holdings against Savings in general ?

- How the authorities would address this issue, specially when they have already given 6 month time which mean half of the financial year ?

- How soon the banking sector would recover from this Breach of Trust

Either they should answer these very basic questions first or should giveup the habbit of making comments in condescending tone

Valid questions indeed.

 

[Rusty]

Feel sorry for these poor people.
The political show off and fake economy of Nerender Modi has taken its toll

Hope it worsens

I don't
remember, they voted for him.
They are just getting what they voted for.

Indian hindus have shown that they will take any kind of suffering as long as minorities are oppressed.

 

[Archie]

Did the op read the article beyond the first 5 sentences
I don't think so
So a small bank with a loan book of 1.2 Billion USD is failing because of Default from HDIL against Rs 6500 crores loan

HDIL has assets which are 2.5 times the loan amount
And The RBI will recover the amount from them by selling those assets.

Even if their is zero recovery
The depositors will get their money back on account of Depositors Insurance act . The only ones who will loose will be the Share holders of PMC bank , since it is likely that PMC will be taken over by a larger Private or public bank,
Just like what happened with Bank of Rajasthan which was taken over by ICICI and IDBI bank which was taken over by LIC Corp

 

[Dash]

@Dash
at least this is real

Capitalism has its own faults but it will survive...and banks in India will never fail

 

[fitpOsitive]

Almost 16 banks turn as defaulter in India today,

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We Pakistanis are saying this for years now. Indian govt is hiding things, and to do that their whole agenda is to put people after anti Muslim things. I mean, now people are doing what is useless, and thinking about things we are useless. Now, BJP politicians are free to loot.

 

[Chhatrapati]

Wonderful sugar coating by a folk who claim to have a better understanding of a so called $2 trillion economy and taunting about IMF, first he need to explain how bad this situation would effect the TRUST of:

- Business community and common depositors on banking system and

- How bad it appears at international level when a common Joe note that "$2 trillion economy" is facing such level of liquidity crunch that banks are restricting the fund withdrawal for their depositors

- How bad it will appear to someone who have rudimentary level of understanding of economy and banking system, would he not check the non-performing advances of Indian Banking sector ?

- Would he not question the overall monitoring policy of Reserve Bank of India over the banking sector ?

- What would be the effect of this on the deposit of other banks ?

- What would be the effect of this on interest rate ?

- How would this effect on currency circulation ?

- How would it effect on Money Creation in Indian banking sector

- Would this not give raise to the trend of Holdings against Savings in general ?

- How the authorities would address this issue, specially when they have already given 6 month time which mean half of the financial year ?

- How soon the banking sector would recover from this Breach of Trust

Either they should answer these very basic questions first or should giveup the habbit of making comments in condescending tone

Perhaps you should read the topic at hand, as to what type of banks went bust then you could've avoided making those points which sounds illogical. Hence the taunt is fair.

- Business communities are not affected as they don't depend on these banks but one who had shares in the banks will be directly affected, especially those in the Real estate sector who basically keep these banks afloat.

- Apples and Oranges, if there is in fact a broad issue of crunch, the mainstream banks would go bust (which RBI and GoI will never allow). This is a few cooperative banks in one or two states who didn't keep their books clean, had to face RBI action.

- Bank NPA's are dealt with, there is no dire issue that would risk a credit crunch in the immediate future. Banks have enough money in their hands and get lower repo rates from the central bank. Slow but it's going on. Link

- Effect on Interest rates is zero as it has no direct effect on Nationalized banks.

- It will not affect currency circulation, (apples and oranges)

- What do you mean by Money Creation?

- Authorities are already addressing the issue, that's why RBI put hold on anymore withdrawal from these cooperative banks beyond a limit.

- The banking sector is fine with few cooperative banks going down. No direct relation.

 

[HRK]

Perhaps you should read the topic at hand, as to what type of banks went bust then you could've avoided making those points which sounds illogical. Hence the taunt is fair.

- Business communities are not affected as they don't depend on these banks but one who had shares in the banks will be directly affected, especially those in the Real estate sector who basically keep these banks afloat.

- Apples and Oranges, if there is in fact a broad issue of crunch, the mainstream banks would go bust (which RBI and GoI will never allow). This is a few cooperative banks in one or two states who didn't keep their books clean, had to face RBI action.

- Bank NPA's are dealt with, there is no dire issue that would risk a credit crunch in the immediate future. Banks have enough money in their hands and get lower repo rates from the central bank. Slow but it's going on. Link

- Effect on Interest rates is zero as it has no direct effect on Nationalized banks.

- It will not affect currency circulation, (apples and oranges)

- What do you mean by Money Creation?

- Authorities are already addressing the issue, that's why RBI put hold on anymore withdrawal from these cooperative banks beyond a limit.

- The banking sector is fine with few cooperative banks going down. No direct relation.

At time of of that post of mine non of these details were posted or reported, so my comments were genuine and sincere and rather to post basic facts to educate forum members that comment by the member [who generally post good quality post related to economy] in such condensing tone was unnecessarily provocative

- What do you mean by Money Creation?

Money creation in one of the basic function of banking for basic understanding read the follow ing link
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=money creation, the process