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11 Vijay Mallyas - the wilful defaulters story

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prasad1

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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
 
Now that every one is blaming Mr.
Vijay Mallya for the failure of his ambitious venture of Kingfisher Airlines, I wish to browse the causes for the failure of this prestigious Airlines. Here is one analysis I found in the financial paper "Live Mint" of "Hindustan Times" group. Time permits we should read this to understand real reasons for its down fall.

http://www.livemint.com/Companies/L...ounded-an-empire-Kingfisher-Airlines-and.html

Brahmanyan
Bangalore.
 
Now that every one is blaming Mr.
Vijay Mallya for the failure of his ambitious venture of Kingfisher Airlines, I wish to browse the causes for the failure of this prestigious Airlines. Here is one analysis I found in the financial paper "Live Mint" of "Hindustan Times" group. Time permits we should read this to understand real reasons for its down fall.

http://www.livemint.com/Companies/L...ounded-an-empire-Kingfisher-Airlines-and.html

Brahmanyan
Bangalore.
hi

i travelled from mumbai to chennai by kingfisher....it was my connecting flight from USA...i enjoyed very much...it was morning

flight...everything nice...i think the main reason for failure...too much ambition and accusion of deccan....
 
[h=1][FONT=&quot]Public Sector banks are very liberal in sanctioning loansand but in recovery….[/FONT][/h][h=1][FONT=&quot] [/FONT][/h][h=1][FONT=&quot]Public sector banks' bad loans equal defence, education,roads and health spending[/FONT][/h][h=2][FONT=&quot]
If the unpaid loans made byIndia's public-sector banks were recovered, they would be enough to pay forIndia's 2015 spending on defence, education, highways, and health[/FONT]
[/h]If the unpaidloans made by India’s public-sector banks were recovered, they would be enoughto pay for India’s 2015 spending on defence, education, highways, and health,according to an [FONT=&quot]IndiaSpend[/FONT]analysis.[FONT=&quot]
These bad loans, or gross non-performing assets (NPAs) as they are called inbanking parlance, of public-sector banks crossed Rs 4.04 lakh crore ($59billion), a rise of 450% since March 2011.[/FONT]
[FONT=&quot]
Private-sector banks also have an NPA problem, but their bad loans are less than half the level ofpublic-sector banks, which account for 73% of all lending.[/FONT]
[FONT=&quot]
The crisis in Indian banking, which IndiaSpend hasrepeatedly flagged (here, here and here),has now reached a point where the NPAs of many public-sector banks are higherthan their net worth.[/FONT]
[FONT=&quot]
This affects their ability to make fresh loans to business, and these bad loans are ultimately paid for byIndia’s taxpayers, the final guarantors of government-owned public-sectorbanks, as editor and columnist T N Ninan recently wrote in BusinessStandard.[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]“So what is to be done?” he wrote of the banking crisis. “The easyoption is to take more of your tax money and give it to the same banks, on aplatter. The government has talked of giving them another Rs 2.4 lakhcrore—which works out to Rs 10,000 from every family, rich and poor.”[/FONT][FONT=&quot][/FONT][FONT=&quot]
“Indeed, 19 of 24 listed government banks’ stocks now quote at less thanhalf of book value, some at a discount of 75 per cent. Clearly, investors stillthink these banks’ books are akin to fiction.”[/FONT]
[h=1][FONT=&quot][/FONT]Read moreat: [url]http://www.business-standard.com/article/specials/public-sector-banks-bad-loans-equal-defence-education-roads-and-health-spending-116021600233_1.html[/URL][/h]
 
More I read about "King Fisher Airlines " default accusing the CEO Mr. Vijay Mallya for the losses incurred by the KFA and failure of the Company for returning the Bank loans, many questions come to my mind. Companies, except major policy matters, are run by Board of Directors and executives specialised in areas of operation. All the major financial institutions appoint independent directors in the Board to take care of their interests. Such is the case, how can all blame falls on CEO only for the defaults and losses? Is he directly involved in taking decisions in financial matters? My doubts may be purely academic.
Here under this website gives the list of executives of KFA.

http://m.timesofindia.com/business/...isher-Airlines-board/articleshow/51418253.cms

Brahmanyan
Bangalore.
 
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