BAMCEF UNIFICATION CONFERENCE 7

Published on 10 Mar 2013 ALL INDIA BAMCEF UNIFICATION CONFERENCE HELD AT Dr.B. R. AMBEDKAR BHAVAN,DADAR,MUMBAI ON 2ND AND 3RD MARCH 2013. Mr.PALASH BISWAS (JOURNALIST -KOLKATA) DELIVERING HER SPEECH. http://www.youtube.com/watch?v=oLL-n6MrcoM http://youtu.be/oLL-n6MrcoM

Tuesday, February 9, 2016

Making in! The Great Govt Bank Write-Off for those blue eyed babies of the ruling hagemony as farmers continue to commit suicide for micro loan! Facts dispute claims by banks: write-off gallops, recovery crawls! Punjab National Bank’s profit falls 93% to Rs 51 cr on surge in bad loans! Red alarm for the survival of Indian PSU Banks as the business friendly governance is all set to sell off these public assets with their manpower making them bankrupt!Thus,ree state-run lenders — Central Bank of India, Dena Bank and Allahabad Bank — reported massive losses on Tuesday, while Punjab National Bank narrowly missed slipping into the red as the growing pile of stressed loans took a toll on their health, raising concerns over the precarious state of the financial sector. In the last three years, public sector banks have written off Rs 1,14,000 crore as reported by The Indian Express on February 8. The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs

 Making  in! The Great Govt Bank Write-Off for those blue eyed babies of the ruling hagemony as farmers continue to commit suicide for micro loan!

Facts dispute claims by banks: write-off gallops, recovery crawls!

Punjab National Bank's profit falls 93% to Rs 51 cr on surge in bad loans!

Red alarm for the survival of Indian PSU Banks as the business friendly governance is all set to sell off these public assets with their manpower making them bankrupt!Thus,ree state-run lenders — Central Bank of India, Dena Bank and Allahabad Bank — reported massive losses on Tuesday, while Punjab National Bank narrowly missed slipping into the red as the growing pile of stressed loans took a toll on their health, raising concerns over the precarious state of the financial sector.

In the last three years, public sector banks have written off Rs 1,14,000 crore as reported by The Indian Express on February 8. The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs did not mean all was lost.

Palash Biswas

The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs did not mean all was lost. -


Suicide and the Indian Peasant - India Today

indiatoday.intoday.in › Archive › UP Front › July 9, 2012
Jul 9, 2012 - At one time suicide had a simple geographical profile in India. ... or forced to commit suicide, the suicide rates began to fall and the subject went ...

Farmers' suicides in India - Wikipedia, the free encyclopedia

In 2010, 15,963 farmers in India committed suicide, while total suicides were 134,599 ..... suicides and the predicament of rural India, Journal of Peasant Studies, ...

From Seeds of Suicide to Seeds of Hope: Why Are Indian ...

May 29, 2009 - From Seeds of Suicide to Seeds of Hope: Why Are Indian Farmers ... the peasant cultivation, why are Indian farmers committing suicide on a ...

Farmers Suicides in India - Navdanya

by V Shiva - ‎Cited by 9 - ‎Related articles
the biggest crisis the Indian peasantry has faced in its long and ancient history ... kidneys or even commit suicide. More than 25,000 peasants in India have taken.

Indian farmers and suicide: How big is the problem? - BBC ...

Jan 23, 2013 - How big is the problem of Indian farmers killing themselves because of ... Image caption The widow of an Indian farmer who killed himself ...

Monsanto in India - SourceWatch

Jump to The Indian Suicides - More than 25,000 peasants in India have taken their lives ... and force more farmers to commit suicide or abandon their ...

[PDF]Indian Farmer Suicide - the United Nations

The suicide rate for farmers throughout the world is higher than for the ... In India, one farmer committed suicide every 32 minutes between 1997 and 2005. .... Growth and distress in a south Indian peasant economy during the era of economic ...

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Apr 3, 2012 - A Farmer Commits Suicide by Pesticide Every 30 Minutes in India .... due to falling farm prices, Indian peasants are losing $26 billion annually.

Mass Suicides by Indian Farmers, Shape of Things to Come ...

www.globalresearch.ca/mass-suicides-by-indian-farmers-shape.../3204
Sep 11, 2006 - ... and, given nature's bounty, its farmers have no reason to commit suicide. .... It should be noted that when the British forced Indian peasants to ...

93 farmers committed suicide in 45 days in Marathwada ...

timesofindia.indiatimes.com/india/...committed-suicide.../46293718.cms
Feb 19, 2015 - The Times of India ..... A farmer committing suicide is eligible for compensation only if he possesses ... File photo of the family of Gosavi Pawar, a debt-ridden peasant from Kolezhari hamlet in Yavatmal who committed suicide, ...

Red alarm for the survival of Indian PSU Banks as the business friendly governance is all set to sell off these public assets with their manpower making them bankrupt!Thus,ree state-run lenders — Central Bank of India, Dena Bank and Allahabad Bank — reported massive losses on Tuesday, while Punjab National Bank narrowly missed slipping into the red as the growing pile of stressed loans took a toll on their health, raising concerns over the precarious state of the financial sector.

The Killers are all set to go with daggers!Just wait for the budget and it would be like cream  walk for the head hunters all the way!

It might be the possibel answer to my question who do drink the savings of the Nation as oil prices crashed!Or where goes the bocks in whose pockets.

In the last three years, public sector banks have written off Rs 1,14,000 crore as reported by The Indian Express on February 8. The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs did not mean all was lost.

Most reputed news agecies decode the economic inclusion unprecedented as four state-run banks reported a spike in bad loans and provisions for sour debt on Tuesday after a clean-up exercise ordered by their regulator, sending three of them to net losses for the fiscal third quarter.


Punjab National Bank (PNB), India's fourth-biggest state-run lender by assets, posted a 93 percent fall in December-quarter profit, and said it expected bad loans to rise further in the current quarter.


Central Bank of India, the eighth-biggest state-run lender, smaller lenders Allahabad Bank and Dena Bank all reported net losses in the December quarter.


More than two dozen lenders majority owned by the government dominate India's banking sector with two thirds of the assets. These lenders together also account for close to 90 percent of the sector's troubled assets.


Indian banks, burdened by their highest stressed-assets ratio in 13 years, have been asked by the Reserve Bank of India (RBI) to treat some troubled accounts as non-performing even if actual default has yet to happen and make adequate provisions.


The RBI's directions followed Governor Raghuram Rajan's call for a clean up of bank balance sheets by March 2017. The banks have been asked to make required provisions during the third and fourth quarters of this fiscal year ending in March.


"The surgery is not over," PNB Chief Executive Usha Ananthasubramanian told a news conference in New Delhi. "The next quarter as well ... I should say the clean-up process is under way," she said of the three months to March.


Dena Bank Chairman Ashwani Kumar, however, expected bad loan additions and provisions to be lower in the current quarter than the last quarter, hoping a "war room" set up by the bank to monitor and recover troubled loans will yield results.


State Bank of India, Bank of Baroda and Bank of India, the top three state-run lenders , are due to report third-quarter results later this week.


PNB, the first major state-run lender to report third-quarter results, said its net profit was 510.1 million rupees ($7.5 million), aided by a tax write back of 9.1 billion rupees. Before the tax benefit, it posted a loss of 8.58 billion rupees.


PNB's gross bad loan ratio jumped to 8.47 percent at end-December from 6.36 percent in September. Provisions, including for bad loans, more than doubled from a year earlier to 37.76 billion rupees.


Central Bank of India reported a net loss of 8.37 billion rupees as provisions more than doubled from a year earlier. Its gross bad loan ratio widened to 8.95 percent in the December quarter from 6.86 percent in September.


Allahabad Bank posted a net loss of 4.86 billion rupees, while its gross bad loans ratio widened to 6.4 percent. Dena Bank's December quarter loss was 6.63 billion rupees, and its gross bad loan ratio jumped to 9.85 percent with provisions quadrupling from a year earlier.


($1 = 68.1775 rupees)


Indian Express reports:

The record of loan recovery by banks after being written off flies in the face of claims made by the Finance Ministry, Reserve Bank of India and State Bank of India that the recovery process does not stop even after write-offs.


In the last three years, public sector banks have written off Rs 1,14,000 crore as reported by The Indian Express on February 8. The Finance Ministry, RBI and SBI sent separate letters to the newspaper arguing that write-offs did not mean all was lost.


But in the last three years, the recovery rate (amount recovered as a percentage of additional write-off) for SBI, the largest government bank, has slipped steadily. Similarly, for ICICI Bank, the largest private sector bank.

If the recovery rate for SBI was 19.06 per cent in 2012-13, it dropped to 11.71 per cent the next year and declined further to 10.88 per cent in 2014-15, data disclosed in the bank's annual report reveals. In absolute terms, SBI's write-offs jumped almost four times from Rs 5,594 crore in 2012-13 to Rs 21,313 crore in 2014-15. It recovered Rs 2,318 crore last year compared with Rs 1,066 crore in 2012-13.

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The trend is similar for ICICI Bank with its loan recovery rate dropping from 26.74 per cent to 15.96 per cent during the same period. It, however, fares better than SBI in keeping its write-off low. ICICI Bank's write-off stood at Rs 832 crore in 2014-15, only marginally higher than Rs 725 crore in 2012-13, according to its annual report. Its recovery, however, declined to Rs 132.8 crore compared with Rs 193.9 crore during the period.



"Write-offs were initially introduced as a tool for banks to manage their tax liabilities on impaired assets. Under the norm, banks were expected to treat the write-offs as advances and pursue their recovery. However, most banks have very poor recovery follow-up once the loan is written off," K C Chakrabarty, former RBI deputy governor told The Indian Express. A presentation by him in November 2013 when he was DG, RBI, showed that less then 10 per cent of the total amount written off (including technical write-offs) have been recovered for the period FY01 to FY13. There is no data on recovery of assets written off in the last two financial years.


In contrast to the tardy recovery, the write-offs and bad loans have only mounted and are likely to rise further in 2015-16. After writing off Rs 53,100 crore in the 2014-15, banks are expected to write off another Rs 52,227 crore this year, says data available from India Ratings which has studied the balance sheets of banks and corporate houses. Loan write-offs in the first half of 2015-16 were Rs 25,000 crore. With this, banks would have written off Rs 277,400 crore in the last ten years with more than half the write-offs happening in the last three years.


Gross non-performing assets, or bad loans, are expected to jump 31.48 per cent in the fiscal ending March 2016 to Rs 426,400 crore from Rs 324,300 crore. On top of this, banks are expected to show restructured loans worth Rs 615,000 crore for the year ending March 2016. This includes standard restructuring loan of Rs 502,000 crore and NPA restructuring of Rs 113,100 crore, says Ind-Ra data which did the number crunching for The Indian Express.


This means that the total stressed assets (NPAs and standard restructured loans) are expected to cross Rs 9,28,000 crore mark by FY16. "Many of the restructured loans of corporates are now turning into non-performing assets," said Udit Kariwala, Analyst -Financial Institutions, India Ratings.


In fiscal 2007, total restructured loan was just Rs 10,400 crore, This has now shot up by 5,813 per cent to Rs 615,000 crore as corporate houses went on a borrowing spree in the last seven years. Many such corporates which embarked on infrastructure projects which need massive investment are now unable to pay up, forcing them to go for corporate debt restructuring (CDR), 5:25 refinance scheme and strategic debt restructuring scheme to remain out of the NPA books.


Ind-Ra estimates around one-third of the corporate sector borrowing from banks to be deeply stressed currently (totalling to 21 per cent of bank credit) of which about half has been recognised currently as impaired in the books (NPAs and restructured loans).


Time of India reports:

"The surgery is not over... Something which has to be cleaned up has to be cleaned up. Everybody has to undergo the pain," PNB managing director & CEO Usha Ananthasubramanian said.

The trends available from the December-end quarter results, announced on Tuesday, and ICICI Bank's performance pointed towards tough times for other lenders as well following the Reserve Bank of India's bad loan clean-up drive.

Analysts expect bank profitability to remain under stress for at least one more quarter as RBI has given lenders two quarters to provide adequately for loans that are under pressure. Many steel and infrastructure companies are on the list where banks have had to keep aside more more funds, known as provisioning, to stay within the regulator's red line.

The health of the banking sector has been in doubt as bad loans soared following the impact of economic slowdown, which dented the books of companies after borrowed excessively during the boom years to fund projects, some of which never took off.

As a result the volume of stressed assets was estimated at around Rs 8 lakh crore.

Unlike the past when banks could hide defaults, new rules mandate that banks set aside funds for potential losses to avoid ballooning of risk when loans actually turn into a non-performing asset (NPA). A loan is classified as an NPA if an instalment remain unpaid for 90 days. This time, RBI's diktat following an asset quality review, has gone beyond what banks classify as NPAs to include loans that were sticky.

As a result, at the end of December 2015, the strict norms pushed up PNB, Central Bank and Dena Bank stock of gross NPAs by at least 49% over the year ago level. 


For Dena Bank, nearly a tenth of its advances have turned NPAs, while the ratio of gross NPA to advances for PNB was only marginally lower at 8.5% of their total loans — levels which have not been seen in nearly 15 years when a massive systemic overhaul was undertaken, including legal changes. Powered by a surging economy gross NPAs of commercial banks had declined from over 12% in 2000-01to a little under 2.5% in 2008-09.

But loans started coming under stress after the 2008 financial crisis but RBI and the government sought to protect banks through a set of special measures.


The sustained slowdown, however, pushed RBI to finally crack the whip late last year as the ratio of NPAs and restructured loans where instalments were being paid on time added up to nearly 11% of advances for the public sector banks at the end of December 2014 and has been steadily rising.

While banks were expected to put up a poor show, the performance was much worse than anticipated and saw stocks tumble. Dena Bank closed over 12% lower on BSE, while PNB fell almost 7% and Allahabad Bank over 3%.

Times View: To the extent that the losses being declared by banks are a reflection of their finally coming clean on non-performing assets, we should be glad. At the same time, it is quite clear that business as usual cannot be an option for the banking sector. State-owned banks, for instance, must not be allowed to pile up NPAs and then bailed out through recapitalisation using taxpayer money. All banks must adopt a no-lending stance towards wilful defaulters, something they have not done in the past.

Punjab National Bank's profit falls 93% to Rs 51 cr on surge in bad loans

Indian Express reports:

Punjab National Bank's net profit took a hit by falling 93.4 per cent to Rs 51 crore in the October-December quarter on account of higher provisioning for non-performing assets (NPAs). The bank's net profit had stood at Rs 621.03 crore in July-September and Rs 774.56 crore in the year-ago period.

© ens economic bureau

Net NPAs constituted 5.86 per cent of the net advances in the October-December quarter, up from 3.82 per cent in the same period a year ago. In absolute terms, the gross NPAs increased to Rs 34,338 crore as of December 2015, from Rs 22,211 crore last year. Net NPAs stood at Rs 22,983 crore during the quarter, up from Rs 13,788 crore last year.

"I (would) like to mention that the industry is going through very tough times and PNB has been one of the major lenders and obviously the impact is felt on the bank which is very much visible on its books," chief executive Usha Ananthasubramanian told reporters at a press conference here.

During the third quarter of the current fiscal, the provisions towards NPAs by PNB increased to Rs 3,775 crore, sharply up from Rs 1,467 crore in the same quarter a year ago.

"The increase in NPAs is on account of bank's exercises as part of RBI's Asset Quality Review over the last two quarters of the current financial year. The bank is undertaking the same over the time-frame stipulated by the RBI," PNB said in a statement.

The income of the bank, however, rose by 7.6 per cent to Rs 13,891 crore during the third quarter of this financial year as against Rs 12,905 crore a year ago. The net interest income (NII) during October-December stood at Rs 4,120 crore, while the non-interest income stood at Rs 1,671 crore.

The bank has a strategy in place to increase the portfolio under small ticket loans, Ananthasubramanian said. "In line with bank's objective to achieve profitable growth from the grassroots, share of small ticket advances to non-food credit increased to 60.3 per cent in December 2015 from 57 per cent in December 2014," she added.

Shares of PNB on Tuesday fell by 6.89 per cent to end at Rs 87.85 per share on the BSE.

Total deposits of the bank grew by 13.3 per cent to Rs 5.49 lakh crore as on December 2015. Current account and savings account (CASA) deposits increased to Rs 1.98 lakh crore as of December 2015, up 14.3 per cent from last year, while savings deposits increased by 12.5 per cent on the year to Rs 1.62 lakh crore.

"We expect some capital infusion from the government. We may not look worse in terms of capital but as a big player, someone has to participate as a big player when the economy starts moving, we are an active player on the lending side of the banking. I am hopeful capital infusion will certainly happen considering the DNA of the bank," Ananthasubramanian said. with PTI

Dena, Allahabad Bank post big losses

Mumbai: Two public sector banks — Dena Bank and Allahabad Bank — on Tuesday reported a combined loss of over Rs 1,100 crore for the third quarter ended December 2015 due to fresh loan slippages and higher provisioning as per the RBI directive.

Dena Bank has posted has incurred a net loss of Rs 662.85 crore in the December quarter as against a net profit of Rs 76.56 crore in the same period of last year and Rs 38.76 crore profit in the September quarter. "It is due to increase in provision for NPAs by Rs 807 crore as compared to corresponding quarter of previous year, due to fresh slippages during the period under review," said Dena Bank CMD Ashwani Kumar.

Allahabad Bank reported a loss of Rs 486.14 crore for the third quarter ended December due to higher provisioning against bad loans as against a net profit of Rs 164.11 crore in the same quarter last year.

The bank's shares declined by 3.23 per cent to Rs 51 on the BSE. ENS

Guess How Many People Pay Income Tax? You Will be Surprised

NDTV profit reports:

It is that time of the year, when the salaried class starts praying for incremental tax concessions in the annual budget. Analysts, however, say that the government should focus on increasing the tax net instead of announcing new income tax concessions.

That's because only 3 per cent of over 1 billion people in the country are estimated to pay income tax. Those who earn Rs 21,000 and more (per month) have to pay taxes, but many small businesses, professionals (such as doctors and lawyers) and rich farmers do not pay taxes.

Tax evasion is not limited to smaller tax payers, analysts say. The number of people who declare annual income of over Rs 1 crore is abysmally low at just around 50,000 in the country, they added.

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"The number of income tax payers in India is woefully small, and the prosperity the country has achieved post reforms, do not reflect in number of taxpayers... We have to devise systems so that we can be able to bring tax avoiding population within the tax net," said Yashwant Sinha, former finance minister. 

According to Mr Sinha, the government has taken "baby steps" by announcing several measures on cash transactions, which could add 30-40 lakhs more tax payers per year.

The Goods and Services Tax (GST), however, could be a big step in bringing more people in the tax net, he added.

"If you had GST for instance, that will help... You will not have a separate sales tax, separate services tax, and a separate excise duty, etc. and you will have income tax. So, people in this country will be paying only two kinds of taxes... If a person is paying a certain amount of excise or service tax and he is not paying income tax, we can easily net him in income tax by finding this out," Mr Sinha said.

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No tears for farmers as they are not a vote bank



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