prasad1
Active member
The Indian banking system has a sea of loans to recover. Nearly 9000 wilful defaulters owe a whopping Rs 92376 crore to Indian banks until the end of March this financial year, according to data.
Mallya, who still holds the inglorious crown as India's greatest defaulter, by himself owes Indian banks Rs 8191 crore. Vanilla mathematics suggests another way of seeing the total wilful default amount. This amount could be as large as 11 Vijay Mallyas (Rs 92378 crore divided by Rs 8191 crore - the Mallya default amount).
We are adding new members to the wilful defaulters list at a rate of 20%. Indian banks collectively declared Rs 76685 crore as having been wilfully defaulted in March 2016, but by March 2017 another Rs 15691 crore was added to the list.
In the previous financial year, the banking system seemingly ushered in two new Vijay Mallyas into the formal 'take loan, declare bankruptcy, and move to London' club. Although, these new recruits have just entered the first phase - take loan and not pay up, it still sounds an alarming growth rate. All credit to the banking system for maintaining consistency - it has just observed these wannabe Mallyas take money and wilfully not pay up.
In phase two and three, these new VMs could potentially take the bankruptcy route, and rush to an obscure exotic location, where Indian law authorities could take time to reach. The cliched phrase, Kanoon ke haath lambe hote hain, (the arms of law are long) does not seem to deter most.
Most defaulters will be be happy in sharing their selfies of their infamous night-outs, or even lend their Whatsapp and Instagram default picture for banks to use, but returning money - that is a clear NO for these lot.
The King of Good Times too posed, gave interviews, exclusives and came out supporting Virat Kohli in the matches that Royal Changers Bangalore played. But did he cough up? Did his photographs and the label of "defaulter" shame him? Rs 8191 crore is far from being recovered.
Mallya besides being associated with UB, was also the Chairman of Sanofi India and Bayer CropScience. Much beyond liquor and aviation, he had exposure to the real estate and fertilizer industry too. Indian banks have found themselves in a pit of quicksand. Every effort to rise up from it, is sadly dragging them down. It might make sense for them to stay calm and wait for external help rather than drown in the pit. And till Mallya finally arrives in the grand black and white stripe robes in India, let policymakers ponder ways and means to stop inducting newer Mallyas into the system.
Read more at: http://www.sify.com/finance/11-vija...lters-story-news-corporate-riqsvAaicffbj.html
Mallya, who still holds the inglorious crown as India's greatest defaulter, by himself owes Indian banks Rs 8191 crore. Vanilla mathematics suggests another way of seeing the total wilful default amount. This amount could be as large as 11 Vijay Mallyas (Rs 92378 crore divided by Rs 8191 crore - the Mallya default amount).
We are adding new members to the wilful defaulters list at a rate of 20%. Indian banks collectively declared Rs 76685 crore as having been wilfully defaulted in March 2016, but by March 2017 another Rs 15691 crore was added to the list.
In the previous financial year, the banking system seemingly ushered in two new Vijay Mallyas into the formal 'take loan, declare bankruptcy, and move to London' club. Although, these new recruits have just entered the first phase - take loan and not pay up, it still sounds an alarming growth rate. All credit to the banking system for maintaining consistency - it has just observed these wannabe Mallyas take money and wilfully not pay up.
In phase two and three, these new VMs could potentially take the bankruptcy route, and rush to an obscure exotic location, where Indian law authorities could take time to reach. The cliched phrase, Kanoon ke haath lambe hote hain, (the arms of law are long) does not seem to deter most.
Most defaulters will be be happy in sharing their selfies of their infamous night-outs, or even lend their Whatsapp and Instagram default picture for banks to use, but returning money - that is a clear NO for these lot.
The King of Good Times too posed, gave interviews, exclusives and came out supporting Virat Kohli in the matches that Royal Changers Bangalore played. But did he cough up? Did his photographs and the label of "defaulter" shame him? Rs 8191 crore is far from being recovered.
Mallya besides being associated with UB, was also the Chairman of Sanofi India and Bayer CropScience. Much beyond liquor and aviation, he had exposure to the real estate and fertilizer industry too. Indian banks have found themselves in a pit of quicksand. Every effort to rise up from it, is sadly dragging them down. It might make sense for them to stay calm and wait for external help rather than drown in the pit. And till Mallya finally arrives in the grand black and white stripe robes in India, let policymakers ponder ways and means to stop inducting newer Mallyas into the system.
Read more at: http://www.sify.com/finance/11-vija...lters-story-news-corporate-riqsvAaicffbj.html