tag:blogger.com,1999:blog-33693245.post3143651037677525928..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Crisis fails to dent Indian banks' financialsThe Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-33693245.post-73412519797394322552010-04-03T23:44:36.959+05:302010-04-03T23:44:36.959+05:30I am late here. But, a word here definitely.
Ind...I am late here. But, a word here definitely.<br /><br />Indian Banks are good are Money appropriation i.e. they take money in one form and lend it diffrently. How many Banks have really given loans - except agriculture and may be priority sector loans - without security? How many Banks support genuine entrepreneurship in the country by giving loans with minimum or less security based on busines proposals or models? I am no Banker, but very less percentages.<br /><br />Bank will lend money, if one provides security. If you dont pay, the asset will be appropriated on Bank's name. This cold lend some resilience to Bank, but does not help country go richer by helping young profesionals with business ideas.NPRnoreply@blogger.comtag:blogger.com,1999:blog-33693245.post-5593864359926163752010-01-10T16:50:16.203+05:302010-01-10T16:50:16.203+05:30Financial results of Indian banks cannot be compar...Financial results of Indian banks cannot be compared with those of American banks for a variety of reasons including the following:<br />1)Indian banks invest proportionately more in G-Secs which as you have pointed out boost treasury gains in a decreasing interest rate regime which we witnessed in the last two years, 2)Directed lending, euphemistically called priority sector advances,accounts for as much as 40% of credit portfolio of Indian banks; the government has a vested interest in ever-greening this substantial portfolio exemplified by periodic government grants for write-off (directed lending is a desirable ideal but corrupted in practice because of various misdirected measures; the resultant loss is very often borne by the government and in turn by the public)and 3)banks availing subsidies from RBI and GOI for lending to agriculture and exports (the benefits accruing to agri and export units help to convert the otherwise unviable units into viable units;we therefore need to measure banks' profitability after taking into account the burden borne by external systems).<br />Indian banks certainly have better credit-appraisal systems and skills. If our banks are liberated from political highhandedness and interference, they can perform much better and that too without subsidy props.K.R.Srivarahanhttps://www.blogger.com/profile/12303077412055435963noreply@blogger.com