The Reserve Bank of India may impose restrictions on state-owned banks which have reported lower than 0.25 per cent return on assets (RoA) due to a mountain of bad debts that has put pressure on profitability.
These include accessing or renewing costly deposits like certificate of deposits, entering into new lines of business, borrowings from inter-bank market, making dividend payments and expanding its staff. As many as 13 listed public sector banks, out of 21, reported lower than 0.25 per cent RoA for the nine month period ended 31, December. The 0.25 per cent mark is crucial, since breach of that level invites a clamp down by the banking regulator as a part of its ‘Prompt Corrective Action’ norms.
Prompt corrective action is invoked if either, net NPAs goes above 10 per cent, capital adequacy ratio (CAR) falls below 9 per cent or RoA falls below 0.25 per cent.
Non-performing assets of public sector banks have taken a toll on their key financial ratios which has deteriorated sharply in the Oct-December quarter. The situation may become worse in the Jan-March quarter which may force the banking regulator to impose restrictions.
10 PSU banks under CBI lens-The Asian Age
The CBI, which is investigating Rs 6,000 crore suspicious remittances case at a Bank of Baroda (BoB) branch in Delhi, is all set to probe similar irregularities in at least 10 more public sector banks.
According to sources role of senior officials of several other public sector banks are now under the scanner of the agency. “The agency is preparing to start a separate probe to find-out similar irregularities in other public sector banks,” sources said.
Investigations by the agency have revealed that 59 current account holders and unknown bank officials of the BoB branch in Ashok Vihar allegedly conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs 6,000 crore in illegal and irregular manner, through 6,255 transfers during May 2014-July 2015, in violation of established banking norms under the garb of payments towards suspected non-existent imports, they added.
The CBI recently registered a case under Sections 120-B (criminal conspiracy), 420 (cheating) of the IPC and the Prevention of Corruption Act, 1988, against 59 current account holders and unknown bank officials and private persons on a complaint from BoB.
Investigations revealed that the accused had abused their official position and in conspiracy with each other and with the said account holders had allegedly cheated and misappropriated the bank funds to the tune of Rs 13.75 crores, thereby allegedly causing loss to Bank of Baroda, sources in the agency said.
“Accounts were allegedly opened either in fictitious names or in the names of persons who were employed in different companies. Forged and fake identity papers like PAN cards and voter ID cards were allegedly used for opening the accounts in fictitious names,” sources said.
Meanwhile, the Enforcement Directorate (ED), which is also probing the case, is all set to send judicial requests to the authorities concerned in Hong Kong and the UAE to get details about certain individuals based there as part of its investigations into the case.
10 PSU banks under CBI lens-The Asian Age
The CBI, which is investigating Rs 6,000 crore suspicious remittances case at a Bank of Baroda (BoB) branch in Delhi, is all set to probe similar irregularities in at least 10 more public sector banks.
According to sources role of senior officials of several other public sector banks are now under the scanner of the agency. “The agency is preparing to start a separate probe to find-out similar irregularities in other public sector banks,” sources said.
Investigations by the agency have revealed that 59 current account holders and unknown bank officials of the BoB branch in Ashok Vihar allegedly conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs 6,000 crore in illegal and irregular manner, through 6,255 transfers during May 2014-July 2015, in violation of established banking norms under the garb of payments towards suspected non-existent imports, they added.
The CBI recently registered a case under Sections 120-B (criminal conspiracy), 420 (cheating) of the IPC and the Prevention of Corruption Act, 1988, against 59 current account holders and unknown bank officials and private persons on a complaint from BoB.
Investigations revealed that the accused had abused their official position and in conspiracy with each other and with the said account holders had allegedly cheated and misappropriated the bank funds to the tune of Rs 13.75 crores, thereby allegedly causing loss to Bank of Baroda, sources in the agency said.
“Accounts were allegedly opened either in fictitious names or in the names of persons who were employed in different companies. Forged and fake identity papers like PAN cards and voter ID cards were allegedly used for opening the accounts in fictitious names,” sources said.
Meanwhile, the Enforcement Directorate (ED), which is also probing the case, is all set to send judicial requests to the authorities concerned in Hong Kong and the UAE to get details about certain individuals based there as part of its investigations into the case.
State-run banks like SBI, Bank of Baroda, Central Bank of India, apprise PM Narendra Modi of rising bad loans
CBI questions PNB board members on loans to diamond company, subsidiaries
Winsome Diamonds owes Rs 4,680.04 crore to a consortium of lenders headed by Standard Chartered Bank. Winsome’s associate Forever Precious Diamonds and Jewellery Ltd owes another Rs 2,121.82 crore to a set of banks led by PNB.-Indian Express
State-run bank's credit profile at risk if not adequately funded, says Fitch-The First Post
The stand-alone credit profile of many Indian public sector banks should come under pressure unless there is meaningful action to restore capital adequacy.
The ratings firm said the sudden drop in profitability of PSBs for the third quarter of the current fiscal was triggered mainly by higher provisioning following a Reserve Bank of India (RBI) order on reclassification of distressed loans.
The RBI, in line with its target for banks to clean up their balance-sheets by March 2017, has nudged both public and private banks to identify stressed accounts and significantly raise provisioning over two quarters through to the end of the current fiscal.
Fitch said that RBI's intent to clean up bank balance sheets by next year could help revive investor confidence in PSBs.
"But the suddenness and speed of the provisioning in the second half of FY16 highlights how long it has taken to address poor balance-sheets," it said.
It also raises questions over the pace and implementation of bank recapitalisation and reforms, especially when central bank intervention is required in identification of bad assets," Fitch Said
Congress party perhaps do not remember that they took more than two years to punish Kasab and more than a decade to punish Afzal Guru and others. They lodged more than 80 cases against Ramdeo but did not arrest corrupt leaders of its own government and did not provide justice to victims of Bhopal Gas Tragedy even after lapse of four decades. They are now raising their eyebrows and asking why BJP led government failed to catch culprits of JNU campus and asking question of capacity, integrity and efficiency of Delhi police.
I am very sad that some of politicians and some of media are not bothered about our nation and they have undoubtedly sold their soul and conscience just to please their high command ,to serve their self, to satisfy their ego and also to serve anti-national elements sitting outside as well as within the country. They are not trying to understand that their such misbehaviour, their improper and irrational support to anti-India-slogan-shouters and unwarranted debate on such issues on TV channels not only send wrong message to Pakistan based terrorists camps but also encourage anti-national activities within India.
I would like say here that seeds of anti- national activities sown during rule of Congress party only and now the poisonous fruits are sold openly in Market in entire India. Modi government is now simply trying to catch them , expose them , weed them out or diluting the evil effects of evil culture created by Congress party.
I hope however that all political parties will shed their personal sentiments, move above party politics, discard vote banks politics and stand united and unanimous on all issues which concerns image of the country, which concerns growth of the country and which relates to unity and safety of the country. I request them to leave the issue of criminality of the case to be decided by police and court of law . I request media men not to sit on chair of Judge and not to decide on their TV channels as to who is culprit and who is not without verifying pros and cons of the matter and without looking into all real evidences.
-The RBI, in line with its target for banks to clean up their balance-sheets by March 2017, has nudged both public and private banks to identify stressed accounts and significantly raise provisioning over two quarters through to the end of the current fiscal.
Fitch said that RBI's intent to clean up bank balance sheets by next year could help revive investor confidence in PSBs.
"But the suddenness and speed of the provisioning in the second half of FY16 highlights how long it has taken to address poor balance-sheets," it said.
It also raises questions over the pace and implementation of bank recapitalisation and reforms, especially when central bank intervention is required in identification of bad assets," Fitch Said
Listen (Link showing TV debate in You Tube is given below)
How anchor of NDTV is seen as working as advocate of traitors and trying to suppress the issue of anti-nationals with holliganism which took place as a spontaneous reaction to misdeeds of anti-India-slogan-shouters, please listen upto the end.
Some of Opponents of BJP and Mr. Narendra Modi are so much selfish that they do not feel shame in ignoring dirty act of JNU students and highlighting the manhandling and hooliganism which took place in court campus while presenting accused Kanhaiya Kumar in court of Magistrate.
Some of Opponents of BJP and Mr. Narendra Modi are so much selfish that they do not feel shame in ignoring dirty act of JNU students and highlighting the manhandling and hooliganism which took place in court campus while presenting accused Kanhaiya Kumar in court of Magistrate.
Even Human Right Commission has taken cognizance of court incident when a few advocates tried to manhandle accused Kanhiya Kumar but ignored incidents of rape committed by a few bad students on Mother India which took place in JNU campus.
Rahul Gandhi, Nitish Kumar, Arvind Kejriwal like politicians talk of freedom of students but do not feel shame in standing in support of anti-national elements in JNU campus. A section of Media men also keep mum on origin of tremor which shook entire India but talking of freedom of speech only.
When Indira Gandhi was killed by a security guard in her home in 1984, followers of congress party created havoc in entire India and killed thousands of innocent Sikhs and destroyed and looted properties of hundreds of crores of rupees. Further they did not ensure even court to decide on the issue for three decades. They are now asking why police is unable to catch hold of culprits and why has police arrested only Kanhaiya Kumar.
It is shameful indeed that some students of JNU attacked on Mother India and threatened to destroy India and break it into pieces and still some of TV media and same congress party followers are trying to ignore killers of Mother India and asking questions after questions on incident which place in spontaneous reaction to attack on mother India. They are trying for release of Kanhaiya Kumar and keeping silence on those who attacked on Mother India. They are now talking of freedom of speech but they do not have patience to wait till police and court complete their task of investigation, collect evidence and decide on the issue judiciously.
Similarly some of journalists are taking entire judiciary and police system in their hands in deciding who are anti-nationals and who are not. What police should do and what not, what BJP government should not do in handling JNU episode and what it should have done. But at the same time they do not hesitate in preaching sermons to advocates not to take law in their hands while protesting misdeeds of accused Kanhaiya Kumar in court of law.
Rahul Gandhi, Nitish Kumar, Arvind Kejriwal like politicians talk of freedom of students but do not feel shame in standing in support of anti-national elements in JNU campus. A section of Media men also keep mum on origin of tremor which shook entire India but talking of freedom of speech only.
When Indira Gandhi was killed by a security guard in her home in 1984, followers of congress party created havoc in entire India and killed thousands of innocent Sikhs and destroyed and looted properties of hundreds of crores of rupees. Further they did not ensure even court to decide on the issue for three decades. They are now asking why police is unable to catch hold of culprits and why has police arrested only Kanhaiya Kumar.
It is shameful indeed that some students of JNU attacked on Mother India and threatened to destroy India and break it into pieces and still some of TV media and same congress party followers are trying to ignore killers of Mother India and asking questions after questions on incident which place in spontaneous reaction to attack on mother India. They are trying for release of Kanhaiya Kumar and keeping silence on those who attacked on Mother India. They are now talking of freedom of speech but they do not have patience to wait till police and court complete their task of investigation, collect evidence and decide on the issue judiciously.
Similarly some of journalists are taking entire judiciary and police system in their hands in deciding who are anti-nationals and who are not. What police should do and what not, what BJP government should not do in handling JNU episode and what it should have done. But at the same time they do not hesitate in preaching sermons to advocates not to take law in their hands while protesting misdeeds of accused Kanhaiya Kumar in court of law.
Biased Media men are repeatedly telecasting and showing their viewers where Mr. O P Sharma ( who manhandled protestors ) is and what did he do in court campus . But they do not consider that it is their duty to find out and show where culprits lie Umar Khalid are hidden and they not think it wise to help police in exposing the misdeeds of ill-motivated students. Media men give news on their TV channels how police has formed five or ten teams to trap guilt students of JNU campus and where they are moving and in which states the are going to raid. They give avoidable inputs to accused so that they may get rid of police trap and run away to more safer place.
I remember how the same media used to give inputs to terrorist camps when terror attack in Mumbai was in progress and police team was in process of finding out and arresting terrorists who carried out serial blast in Mumbai. Media men do not treat it their duty to help government in trapping the culprits but feel great in pointing out deficiency of the government. It appears as if these media men are not Indians but agent of enemy of India or they are agents of Opponents of BJP.
Congress party perhaps do not remember that they took more than two years to punish Kasab and more than a decade to punish Afzal Guru and others. They lodged more than 80 cases against Ramdeo but did not arrest corrupt leaders of its own government and did not provide justice to victims of Bhopal Gas Tragedy even after lapse of four decades. They are now raising their eyebrows and asking why BJP led government failed to catch culprits of JNU campus and asking question of capacity, integrity and efficiency of Delhi police.
I am very sad that some of politicians and some of media are not bothered about our nation and they have undoubtedly sold their soul and conscience just to please their high command ,to serve their self, to satisfy their ego and also to serve anti-national elements sitting outside as well as within the country. They are not trying to understand that their such misbehaviour, their improper and irrational support to anti-India-slogan-shouters and unwarranted debate on such issues on TV channels not only send wrong message to Pakistan based terrorists camps but also encourage anti-national activities within India.
I would like say here that seeds of anti- national activities sown during rule of Congress party only and now the poisonous fruits are sold openly in Market in entire India. Modi government is now simply trying to catch them , expose them , weed them out or diluting the evil effects of evil culture created by Congress party.
I hope however that all political parties will shed their personal sentiments, move above party politics, discard vote banks politics and stand united and unanimous on all issues which concerns image of the country, which concerns growth of the country and which relates to unity and safety of the country. I request them to leave the issue of criminality of the case to be decided by police and court of law . I request media men not to sit on chair of Judge and not to decide on their TV channels as to who is culprit and who is not without verifying pros and cons of the matter and without looking into all real evidences.
In my opinion, persons who are supporting directly or indirectly anti-India-slogan-shouters are equally guilty of indulging in anti-India activities. I do not know whether charges of sedition are applicable to students or not but I have no doubt that those students are guilty of being anti-national and their supporters are equally so. Law should take its own course of action and should not spare anyone whosoever is found to be guilty of maligning the image of the country.
I make an earnest appeal to elected representatives Member of Parliament of each political party or individuals to treat all national issues above all party politics and support government in punishing all persons who are found to be Mother India
I would also like to suggest Government of India to make adequate legal provisions to punish all those processionists , strikers and protesters who in the name of freedom cause violence and burn national properties. They can lodge their protest to any action of the government and they may put their demand before government on any issue silently and without violence too.
Hats off to you sir for your commendable comment .
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