Public Sector AND Privatisation

In defense of public sector Banks, here is one excellent video BY RAJIV   DIXIT

Do you know that Lala Lajpat Rai started Punjab National Bank to counter the British Imperial Bank? Do you know that Bhagat Singh, Chandrashekhar Azad had their account in PNB? Do you know the party founded by Azad, Hindustan Republican Socialist Association had its bank account in PNB? Are you aware of the contribution of LIC towards the country's villages? Do you know about the great works of Public Sector towards the country's development?

Rajiv Dixit exposes the conspiracy of corrupt Indian politicians to deliberately defame the Public Sector undertakings so that there is no public protest against them when they are sold at throw away prices to foreign conspirators in collusion with them.

Watch  the video in

http://www.youtube.com/watch?v=8QWhy_cx0NM

Banks’ NPAs may worsen in FY’13: NPAsource.com

VIRENDRA PANDIT

AHMEDABAD, JAN 24: 

Over a dozen banks in India posted a 100% jump in their net non-performing assets (NPAs) in 2011-12, and the situation may worsen in 2012-13, according to NPAsource.com, a portal focusing on resolution of stressed assets.

Large banks like Central Bank of India, with over 400%, followed by Indian Bank (201%), Oriental Bank of Commerce (162%), Corporation Bank (119) and Punjab National Bank (118%) were amongst those banks which reported a 100% jump in their net NPAs during 2011-12.

Foreign banks like Bank of Bahrain & Kuwait (399%), Chinatrust Commercial Bank (269%), DBS Bank (232%) and Standard Chartered Bank (193%) too figured amongst the banks with very high increase in their net NPA levels, said Devendra Jain, Chairman and Managing Director, Atishya Group, owner of the portal.

The NPA scenario has worsened in the first half of 2012-13, with gross NPA growth rate at 45.7% being far higher than the growth in gross advances by banks in India. Some of India’s biggest banks which reported the highest increase in net NPAs in 2011-12, faced further deterioration in asset quality in the first half of 2012-13 too.

Central Bank of India’s net NPAs growth rate has again jumped by 224.5%, PNB’s has shot up by 277% and for Indian Bank it is a further jump of 111%.

The State Bank of India, too saw its net NPAs shoot up by 40% during the first half of 2012-13 as against an increase of 28% in the previous financial year ended March 31, 2012, he said.

As of September 30, 2012, net NPAs for 39 listed banks were higher by around Rs. 31,100 crore or 58% compared to the corresponding period of last year, the analysis by NPAsource.com shows. Of this, approximately 75% or Rs. 23,300 crore has risen during first half of FY2012-13.

Similarly gross NPAs as of September 30, 2012 were higher by Rs. 53,000 crore, or 46.7%, compared to the corresponding period of last year. Of this 66%, or Rs. 35,200 crore, has risen during first half of FY2012-13.

Even as the gross NPAs of all banks shot up by 45.7% for the first half ended September 30, 2012, the gross advances growth rate was just 15.9%, according to the recent data released by the RBI.

The analysis done by NPAsource.com shows that net NPAs of 39 listed banks, as of March 2012, were Rs 61,380 crore which have risen to Rs 84,680 crore in September 2012, a growth of 38%. Similarly, gross NPAs as of March 2012 were Rs. 1,31,400 crore, which have risen to around Rs. 1,66,600 crore as of September 2012, a growth of 27%.

http://www.thehindubusinessline.com/industry-and-economy/banking/banks-npas-may-worsen-in-fy13-npasourcecom/article4340234.ece

26 JAN, 2013, 06.51PM IST, NEW YORK TIMES 

Indian banks can be trusted: Survey

"What have you done to me lately?" 

For banks around the world, the answer to that question seems to be the determining factor in whether banks are largely trusted. In countries whose financial systems did not blow up during the worldwide recession, trust has remained high. But in some European countries where the banks were generally viewed as having caused the crisis, trust plunged and has not recovered. 

Online surveys of "informed publics" in 26 countries were conducted by people hired by Edelman, a public relations firm. Respondents were asked how much they trusted banks "to do the right thing," on a scale of one - "do not trust them at all" - to nine - "trust them a great deal." In the 2013 survey, conducted in October and November and released this week at the World Economic Forum in Davos, Switzerland, more than two-thirds of the respondents in seven areas - all but one of them in Asia - thought the banks were worthy of trust. They were Indonesia, India, Malaysia, China, Hong Kong, Singapore and Mexico. 

At the other end of the spectrum, fewer than a third of the respondents in six countries - all in Europe - thought bankers could be trusted. They were Ireland, Spain, Germany, Britain, the Netherlands and Italy. 

Those questioned were limited to well-educated successful people; they had to be college graduates age 25 to 64 with income in the top quartile of their age group who said they followed the news regularly. 

In the United States, trust in banks plunged after it became clear that bad lending practices played a major role in the housing boom that led to a bust. In the 2008 survey, taken in the fall of 2007 just before the U.S. recession began, banks had the trust of 71 percent of the people polled. By the 2011 survey, taken in 2010, that figure was down to 25 percent. But in the current survey, it was back up to 50 percent and the United States had the largest recovery in trust for bankers among the countries surveyed. 

That revival came despite continuing bad publicity over mortgages, both in lending during the boom and in foreclosure policies after the collapse. The U.S. economy has been slowly recovering, though, unlike those in many European countries, and that may have helped. 

But the fact that half of those questioned now have at least some trust in banks does not mean people think the banks are doing a good job. Asked how banks were performing in six areas, more than half of the U.S. respondents said they were doing a good or excellent job in only one of them, ensuring privacy and security of customers' personal information. In each of the other areas - small-business lending, mortgage lending, credit cards, trading and investing in government bonds and overseeing initial public offerings for companies - less than 40 percent thought performance was good or excellent. 

In Britain, the figure was less than 40 percent in all six areas. In China, a majority voiced approval for the performance of the banks in five of the areas, the exception being initial public offerings, where slightly less than half gave positive responses. 

Canada, a country whose banking system largely emerged unscathed from the crisis, is remarkable in how little variation there has been in the rankings, which have been from 50 to 60 percent throughout the period. In China and India, whose growth continued when most countries fell into recession, at least three-quarters of the respondents trusted the banks every year. At the other end of the spectrum, the past three surveys have shown that banks were trusted by less than 20 percent of respondents in Ireland, which experienced a housing bust that led the government to go deeply into debt to bail out the banks. 

http://economictimes.indiatimes.com/news/economy/finance/indian-banks-can-be-trusted-survey/articleshow/18197300.cms