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thanks.
Saturday, November 27, 2010
Friday, November 26, 2010
Why bank stocks fall in indian market? Is it justified?
Taken from www.shvoong.com ( good site of me):
In India, today i.e. 24.11.2010 around 2 pm, CBI arrested totally 8 persons , some from banks and LIC housing finance and some from Finance consultancy services in Mumbai. The media , without knowing the basic things, raised hue and cry that banking system is having some loopholes for bad debts etc. Indian stock market lost nearly 200 points on hearing this and casualty is bank stocks. But slowly as further news pour in, it appears that indian banking system is intact sound under the watchful eyes of Reserve bank of India ;only certain vested individuals in banks took some bribe money to process loans quickly taking the help of financial consultant companies as middle men. as usual the financial conultant companies takes a cut of 1% to 2% as their fees.Though some real estate companies name appeared in cbi report, it is only as references and not accused. No company employees are arrested by cbi and only details like sanction date of loans etc. were asked by cbi. so it appears to be isolated instance of corruption by officials of public sector banks. Since there are so many layers in verifying and sanctioning loans, there is little chance of any loan without proper security. ofcourse there may be few loans with insufficient security when top echleon interferes with procedure and it may be limited one for political or personal reasons but cases may be limited.
Thus it appears from the news report that
1.Only few individuals who are dishonest have taken bribe for arranging the loans at the earliest.They include some middle and top level managers . Use of brokers for arranging loans is done by companies in order to get the loans quickly. It is just like brokers in RTO office, Govt offices etc. as companies and individuals do not have time to waste their time and energy at the doors of babus. Since IT is not developed wantonly in these sectors to make officers to fear about delay and for answering delay, these things are happening in India. It is a routine one and it is a known fact and supreme court has already spoken sadly about this quoting that this can also be made as regular cost.
2. In LIC housing finance, leakage of information may have been done to some middlemen who may use it in stock market for purchase and sale of shares. Now lot of consultants are there to advise clients when to purchase or sell shares based on some inside information. May be this is the cause for that to get information. If LIC/LIC housing finance wants to purchase certain shares, these information may leak earlier to certain individuals so that some may corner those shares earlier in order to get benefit. This may be reason for giving money to obtain inside information.So it is only personalised matters and there may not be any problem with the loans and assets quality hypothecated with the banks. There may be some 1 or 2% of stray cases of insufficient assets for which banks already provide bad debt provision.
In India, today i.e. 24.11.2010 around 2 pm, CBI arrested totally 8 persons , some from banks and LIC housing finance and some from Finance consultancy services in Mumbai. The media , without knowing the basic things, raised hue and cry that banking system is having some loopholes for bad debts etc. Indian stock market lost nearly 200 points on hearing this and casualty is bank stocks. But slowly as further news pour in, it appears that indian banking system is intact sound under the watchful eyes of Reserve bank of India ;only certain vested individuals in banks took some bribe money to process loans quickly taking the help of financial consultant companies as middle men. as usual the financial conultant companies takes a cut of 1% to 2% as their fees.Though some real estate companies name appeared in cbi report, it is only as references and not accused. No company employees are arrested by cbi and only details like sanction date of loans etc. were asked by cbi. so it appears to be isolated instance of corruption by officials of public sector banks. Since there are so many layers in verifying and sanctioning loans, there is little chance of any loan without proper security. ofcourse there may be few loans with insufficient security when top echleon interferes with procedure and it may be limited one for political or personal reasons but cases may be limited.
Thus it appears from the news report that
1.Only few individuals who are dishonest have taken bribe for arranging the loans at the earliest.They include some middle and top level managers . Use of brokers for arranging loans is done by companies in order to get the loans quickly. It is just like brokers in RTO office, Govt offices etc. as companies and individuals do not have time to waste their time and energy at the doors of babus. Since IT is not developed wantonly in these sectors to make officers to fear about delay and for answering delay, these things are happening in India. It is a routine one and it is a known fact and supreme court has already spoken sadly about this quoting that this can also be made as regular cost.
2. In LIC housing finance, leakage of information may have been done to some middlemen who may use it in stock market for purchase and sale of shares. Now lot of consultants are there to advise clients when to purchase or sell shares based on some inside information. May be this is the cause for that to get information. If LIC/LIC housing finance wants to purchase certain shares, these information may leak earlier to certain individuals so that some may corner those shares earlier in order to get benefit. This may be reason for giving money to obtain inside information.So it is only personalised matters and there may not be any problem with the loans and assets quality hypothecated with the banks. There may be some 1 or 2% of stray cases of insufficient assets for which banks already provide bad debt provision.
Wednesday, November 24, 2010
Save Congres party from doom
Adopted from shvoong.com (Sonia gandhi/Rahul gandhi save congress party)
In India, slowly Congress is losing its popularity due to improper guidance/ no guidance of high powered committee surrounding Mrs.Sonia Gandhi and Rahul Gandhi. It appears all are 'Yesman' than daringly and softly pointing out mistakes also to them so that corrective actions can be taken to come to power in India overall. Some of the suggestions are given below:
1. First Sonia and Rahul should try to show Congress as corrupt free party. For this, Congressmen in the state and centre should be advised to keep away from corruption . People should not be harrased for getting their services.
2. Party should be watch dog of Govt. Only Sound Congress party can form Govt. Hence watchdogs should be there to monitor the activities of Govt and give reports to Party state high command and central high command similtaneously so that Sonia and Rahul can get real feed back about activities of local govt and take suitable action.
3. Sonia and Rahul in consultation with BJP should stop caste based census which will harm their parties in long run as majority castes will build their own party and take this country to doomsday and Congress and BJP will not escape the bite of this Ghost. People should not be divided based on caste/ communities. There should be two divisions called Vegetarian and Non-vegetarian and also Poor and Rich. Only towards this goal, Congress and BJP should move. Otherwise Yedurappa cases wil happen where top ups can't do any thing and Party Leader will be challenged due to their caste support. So be careful.
4. Congress State leaders and Chief Ministers and ministers should be called once in three months for a meeting wherein progress of the state concerned should be checked in various sectors and critical study has to be made. Also all should be warned for corruptions and clearly tells them that party willo not shield anyone facing the charges and they have to come out from the charges after resigning from their posts immediately.
5. Central programmes should be advertised properly through national and regional newspapers and party appartus should also be geared to give wide publicity. But we find oflate only internal bikerings and fights are only seen in congress circles which slowly takes it to destruction. The programmes and policies of central govt should reach all people and state govt should not be allowed to take credit for them
6. Party leaders and chief ministers should be advised to take care only about usability of all the scchemes to poor and whether it is really reaching the deserved. Bureacrats should be allowed to take decisions timely and efficiently and they should be warned that if any corruption is there, they will be suspended and dismissed quickly. This will make ministers to devote more time to public. No file should be kept pending without any proper reason. This will speed up develepment.
7. No permanent foes or friends in indian politics. Now Congress though not involved directly with Spectrum 2 G scandal but due to coalition politics, it is feeling the heat. Opposition parties will take this weapon to score Congress in all future elections as the amount involved is huge. So Congress should think twice before taking any decision. It is better to comply with JPC.Now in Tamil nadu, AIDMK is commanding respect as compared to DMK among public. So it is better to leave DMK and join with AIDMK and agree for sharing of Tamil Nadu govt.
8. In AP, Jagan can be accommodated in Dy.CM post along with Rossaiah so that some peace will return and he can be assured future elevation after gaining experiance. Personal ego should not hamper party's growth. Every one should think that party is great than individuals.
These are some of the ideas for congress to improve its image. The same ideals can be followed by other parties also to prop up image.
In India, slowly Congress is losing its popularity due to improper guidance/ no guidance of high powered committee surrounding Mrs.Sonia Gandhi and Rahul Gandhi. It appears all are 'Yesman' than daringly and softly pointing out mistakes also to them so that corrective actions can be taken to come to power in India overall. Some of the suggestions are given below:
1. First Sonia and Rahul should try to show Congress as corrupt free party. For this, Congressmen in the state and centre should be advised to keep away from corruption . People should not be harrased for getting their services.
2. Party should be watch dog of Govt. Only Sound Congress party can form Govt. Hence watchdogs should be there to monitor the activities of Govt and give reports to Party state high command and central high command similtaneously so that Sonia and Rahul can get real feed back about activities of local govt and take suitable action.
3. Sonia and Rahul in consultation with BJP should stop caste based census which will harm their parties in long run as majority castes will build their own party and take this country to doomsday and Congress and BJP will not escape the bite of this Ghost. People should not be divided based on caste/ communities. There should be two divisions called Vegetarian and Non-vegetarian and also Poor and Rich. Only towards this goal, Congress and BJP should move. Otherwise Yedurappa cases wil happen where top ups can't do any thing and Party Leader will be challenged due to their caste support. So be careful.
4. Congress State leaders and Chief Ministers and ministers should be called once in three months for a meeting wherein progress of the state concerned should be checked in various sectors and critical study has to be made. Also all should be warned for corruptions and clearly tells them that party willo not shield anyone facing the charges and they have to come out from the charges after resigning from their posts immediately.
5. Central programmes should be advertised properly through national and regional newspapers and party appartus should also be geared to give wide publicity. But we find oflate only internal bikerings and fights are only seen in congress circles which slowly takes it to destruction. The programmes and policies of central govt should reach all people and state govt should not be allowed to take credit for them
6. Party leaders and chief ministers should be advised to take care only about usability of all the scchemes to poor and whether it is really reaching the deserved. Bureacrats should be allowed to take decisions timely and efficiently and they should be warned that if any corruption is there, they will be suspended and dismissed quickly. This will make ministers to devote more time to public. No file should be kept pending without any proper reason. This will speed up develepment.
7. No permanent foes or friends in indian politics. Now Congress though not involved directly with Spectrum 2 G scandal but due to coalition politics, it is feeling the heat. Opposition parties will take this weapon to score Congress in all future elections as the amount involved is huge. So Congress should think twice before taking any decision. It is better to comply with JPC.Now in Tamil nadu, AIDMK is commanding respect as compared to DMK among public. So it is better to leave DMK and join with AIDMK and agree for sharing of Tamil Nadu govt.
8. In AP, Jagan can be accommodated in Dy.CM post along with Rossaiah so that some peace will return and he can be assured future elevation after gaining experiance. Personal ego should not hamper party's growth. Every one should think that party is great than individuals.
These are some of the ideas for congress to improve its image. The same ideals can be followed by other parties also to prop up image.
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