Super Rich defaulters push Indian Banks towards collapse

[mkrishna100]

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http://www.dnaindia.com/india/repor...rs-push-indian-banks-towards-collapse-2096523

What is worse is that just the top 30 cases of default account for a Rs 1.21 lakh crore, which is almost 40% of the Non Performing Assets (NPAs) in banks. The upper middle class, who usually takes loans of over Rs 1 crore, accounts for 33% of the total NPAs.

It's not the poor farmers or the middle class who are defaulting on their loans. It's the country's super rich, businessmen and the upper middle class with loan amounts of over Rs 1 crore who account for a staggering 73% of the unpaid loans to banks.
What is worse is that just the top 30 cases of default account for a Rs 1.21 lakh crore, which is almost 40% of the Non Performing Assets (NPAs) in banks. The upper middle class, who usually takes loans of over Rs 1 crore, accounts for 33% of the total NPAs.


Finance Ministry documents as accessed by dna show that both public and private sector banks are equally in the red, struggling to recover even a part of the public's deposits lent to India's super rich. What is worrying is that while most banks are readily giving loans to unreliable people of high net worth, ordinary people are struggling to take loans to even educate their children.
The mounting bad debts have forced banks to clamp down on wilful defaulters. As on March 31 this year, banks have declared 7,035 wilful defaulters with outstanding of Rs 51,442 crore. The worst hit among PSBs is SBI, which accounts for over a 1,000 cases worth Rs 11,510 crore.
Banks are also taking the legal option proactively against defaulters. Apart from filing FIRs against willful defaulters, banks have initiated legal action against more than 6,000 individuals and companies who are habitual offenders.
Despite the aggressive intent of banks, the default situation in India might soon snowball into a crisis of existence for the Indian banking system. Banking data studied by dna indicated that gross NPAs of seven Public Sector Banks (PSBs) have increased by more than one percent against advances. The worst culprits are UCO bank, Indian Overseas Bank and State Bank of Travancore which have registered negative advances in the last financial year. The books of these banks are under severe stress and many depositors feel that they might be in danger of losing their hard-earned money deposited in these banks.
It's not just a handful of PSBs which are staring at an existential crisis owing to their piling bad debts. India's banking sector is walking a tight rope between salvation and collapse. Loans and advances by banks delined by 50% over the last one year, indicative of the fear mong bankers to lend to big corporates who are brazenly and willingly defaulting on their loans.
Non-payment by big corporate and the ultra rich has also caught the eye of the RBI, which stated that banks are free to take over the ownership of a company if it cannot repay its debts – a directive unprecedented in India's banking history. However, with many defaulting companies unable to run their businesses, this might further endanger the country's banks who will then be forced to invest public deposits to restart the business of rogue defaulters.
Sources in the Finance Ministry told dna that some banks may soon be forced to knock on the doors of the government to bail them out of a default crisis which could force many banks to down their shutters.
For Prime Minister Narendra Modi's 'Make in India' programme to be a success, it would require an immediate end to the culture of 'Steal from India' by the country's rich and rogue business houses.



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[vgane]

The gross NPA in Banks is at 5% in second half of 2015 which is the worst in the last 15 years...If you add the restructured ones the total distressed assets is terrifying at 11%...Some strong action is needed against these Corporate defaulters

 

[mkrishna100]

Will India see a Big Banking Crisis like the one that happened in the USA in 2008 ?

 

[krish44]

The one change that is taking place is that PSU banks are being made to disclose the exact extent of NPAs instead of burying the exact extent in balance sheets.

The banks need to act on immediate information of default instead of further rescheduling and postponing the recoveries. This only multiplies bad debts.

Banks throw good money after bad. That is cause of increasing NPAs.

PSU banks do not sink as every now and then they are recapitalised by the govt by infusing fresh capital.

Only it is public money which is going into them not politicians or industrialists.

 

[prasad1]

Mkrishnaji said it right in his op.
To an extent the bank officials make and remake loans so it never shows as default on the books, to their cronies. It also could be stupidity or complicity of the bank managers to defraud the taxpayers. The bank official who made the loan along with the loan defaulter should be investigated, and prosecuted.

 

[Vaagmi]

This is what I read in another in which I am a member. It makes interesting reading. The money power of crony capitalists in the country is pretty strong indeed. Read and discuss.

Rajan Vs Mallya: Why PM Modi should be more than a mute spectator in battle vs cronies Dinesh Unnikrishnan The Firstpost Online Published on January 25, 2016​

At Davos, Switzerland, RBI governor Raghuram Rajan’s battle cry on politically connected crony capitalists, who have taken Indian banks for a ride for long, was precise on the target.“If you flaunt your birthday bashes even while owing the system a lot of money, it does seem to suggest to the public that you don't care. I think that is the wrong message to send,” Rajan said in an interview to a TV channel on the sidelines of the just concluded World Economic Forum.His words, an obvious reference to India’s flamboyant liquor baron, Vijay Mallya, defied the winter chills of Davos and found their way back to the home land, where a clutch of 17 Indian banks is nearing the end of a losing a battle to Mallya to recover not less than Rs 7,000 crore (plus interest overdue) of their dues lent to the now defunct Kingfisher airlines. Since 2012, banks have been trying out all possible options from court battles to friendly persuasions to tagging Mallya as wilful defaulter to get back their money but without luck. It is very unlikely that they ever will.But Rajan seems to be fighting a lonely battle as he repeated his warnings to Mallya. “If you are in trouble, you should be cutting down your expenses". “The system has been geared to favouring those who have the ability to work the courts. The policy that you (large businessmen) follow is that during good times you take the upside but in bad times you go to banks and ask how much of a haircut are you going to take,” Rajan said. Not too long ago, in his New Year message to his colleagues at RBI, the economist turned central banker, had expressed his displeasure at the RBI’s and banking systems’ inability to take on large corporate defaulters and sought a difference in their attitude. “No one wants to go after the rich and well-connected wrongdoer, which means they get away with even more. If we are to have strong sustainable growth, this culture of impunity should stop,” Rajan had said. King of good (and bad) times Mallya has been flaunting his wealth and lavish lifestyle as if openly challenging the banking system. His Rs 7,000 crore loan is a non-performing asset (NPA) on the books of banks since January 2012. He has dragged banks to courtrooms shielding himself with an army of top corporate lawyers. Mallya is not someone who is not repaying banks because he is a penniless pauper. He is still one of the richest men in India.Mallya’s 60th birthday party was celebrated at Kingfisher Villa in Candolim in Goa on December 18 with fireworks, celebrity shows and almost converting the villa to a palace with around 500-600 guests all coordinated by an event management agency.This is when some of his Kingfisher employees have still unpaid dues, the shareholders have lost most of their wealth invested in Kingfisher shares, 17 large banks of the country, tax authorities and investigating sleuths are chasing him for non-repayment of funds and alleged irregularities in the end use of the money borrowed from banks. Mallya managed to use the legal system to his advantage to such extent that one of the lenders in the consortium — United Bank of India — had to reverse its decision to classify Mallya as a wilful defaulter in late 2014 just two months after it classified him with that tag. After a prolonged legal battle, the State Bank of India (SBI) in November 2015 tagged him wilful defaulter.A wilful defaulter is typically ostracized from the financial system with no power to borrow money from elsewhere. Such promoters cannot be part of any of the listed companies. But, Mallya and his holding company United Breweries have moved court challenging this decision on the grounds of violation of natural justice.What is worth to note here is that whether Mallya is a wilful defaulter or not, banks have failed to recover even a fraction of the Rs 7,000 crore due to them, nor put the man in Jail despite this being one of the top corporate defaults in the country. It is to be remembered that Mallya’s personal wealth and real estate holdings sprawl across multiple countries. There are many cases such as Kingfisher, where banks are running from pillar to post to get their dues. According to the RBI data, standard assets among large borrowers declined from 86.2 percent of total gross advances as of March 2015 to 84.5 percent as of September 2015. This constitutes a large part of the Rs 3.5 lakh crore gross NPAs of Indian banking system. Rajan has reasons to get worried. Not just Rajan’s battle More than Rajan, Prime Minister Narendra Modi should be worried about the mounting bad loans of Indian banking system (of which over 90 percent is on the books of state-run banks). This is because it can potentially derail the fiscal arithmetic of his government, which is walking a tight rope to fulfil its commitment of fiscal consolidation.Bad loans have significantly increased the capital burden of banks since they need to set aside more money to cover their doubtful assets. Indian banks would require Rs 2.5 lakh core funds to meet their Basel-III norms (which is a moving target depending on multiple factors), while the government has so far committed only Rs 70,000 crore (with a promise to increase it in the budget). The government wants banks to fend for themselves with respect to the remaining amount but this will be difficult since there won’t be enough investor-interest for these banks in the market. The NDA government hasn’t so far performed poorly on handling the baking sector. It is going to be even bigger challenge now.The sad truth is beyond venting his anger on cronies through public interactions, Rajan clearly lacks the power to tackle wily corporate defaulters. The RBI arguably delivered its most powerful salvo to take on cronies when it allowed banks to use wilful defaulter tag on crony promoters. But, as seen in the Mallya episode, this powerful weapon has turned out to be no more effective than kid gloves in big battles. A change can happen only if the Modi government throws its weight behind the banking system to deal with large corporate defaulters such as Mallya, which is absent until now.True, the proposed bankruptcy code could make banks’ lives better to deal with future cases of default. But there is a large, ticking time bomb of existing bad loans in the country’s banking system. The government could do more than being a mute spectator in RBI’s battle with crony promoters.

 

[Rangachari Sampathkumaran]

The above quote/reply "Rajan Vs Mallaya" by Shri Vaagme has clearly indicated the reason. Corporate Bosses like Vijay Mallaya are able to manage "everything". Patronage by powerful politicians, weakness in judiciary, deviations by the top brass of various banks etc., coupled by the "purchasing power" of such defaulters have made a mockery of the Indian Banking scenario. Unless the defaulters are booked by confiscation of all properties owned by all directors / their spouse / children, the situation will not improve. Some poor Bank officer at a desk level, recommendatory level will face the music by the respective banks under staff accountability policy (whereas they might have carried out the oral instructions of their bosses). Loop holes in the law of the land ensures the defaulters roam freely, lawyers making hay while sun shines and banks battling with poor performance. I am sure that the next two years will see a quantum jump in the Gross and Net NPA (it may in double digits), eroding the capital.

In an old tamil movie, actor Nagesh will say "money can do ten things, if I have it, I can do eleven things" (பணம் பத்தும் செய்யும், அது எங்கிட்ட இருந்தால் நான் பதினொண்ணும் செய்வேன்" - this is the reality....

 

[yesmohan]

The above quote/reply "Rajan Vs Mallaya" by Shri Vaagme has clearly indicated the reason. Corporate Bosses like Vijay Mallaya are able to manage "everything". Patronage by powerful politicians, weakness in judiciary, deviations by the top brass of various banks etc., coupled by the "purchasing power" of such defaulters have made a mockery of the Indian Banking scenario. Unless the defaulters are booked by confiscation of all properties owned by all directors / their spouse / children, the situation will not improve. Some poor Bank officer at a desk level, recommendatory level will face the music by the respective banks under staff accountability policy (whereas they might have carried out the oral instructions of their bosses). Loop holes in the law of the land ensures the defaulters roam freely, lawyers making hay while sun shines and banks battling with poor performance. I am sure that the next two years will see a quantum jump in the Gross and Net NPA (it may in double digits), eroding the capital.

In an old tamil movie, actor Nagesh will say "money can do ten things, if I have it, I can do eleven things" (பணம் பத்தும் செய்யும், அது எங்கிட்ட இருந்தால் நான் பதினொண்ணும் செய்வேன்" - this is the reality....

The points related to reality are rightly collated and presented.

 

[vgane]

The swindling duo of Pramod and Vinod Mittal owed over Rs 2000 crores to lenders, employees and suppliers; yet Pramod Mittal manages to splurge Rs 500 crores on his daughter's marriage; what an irony!!

 

[krish44]

I do not expect corporate or political culture to change to please RBI governor.

He will face the prospects of getting loaded with a committee to fix interest rates.

Next Govt wants easy money for welfare programs for pleasing the electorate and feeding the corporates who finance political parties at election time.

Govt banks need to serve these purposes.

Too much of tight money can only harm the economy and hurt growth.

One has to relax on inflation front and encourage wild and free Govt spending to kickstart the economy which is paralysed.

All this talk on fiscal discipline and CAD control can only damage growth.

Unless the RBI and Govt decide to open up on spending on a large scale, misery of people can only go up.

The sufferers will only be the poor and middle class.

It would be wise to stop the witch hunt against black money and corporate bad loans and go on a write off spree to get investor confidence back.

There is no alternative to recapitalising banks.

It will happen.

Whether RBI governor can compromise and put up with it is to be seen.

RBI governor will get a pat abroad.

Here in india, his actions will not be welcome.

He is taking on strong corporate and political interests.

What happens next is to be watched with interest

 

[biswa]

Krish ji, why do you say that we should "stop the witch hunt against black money" ?

 

[vgane]

Only posterity will appreciate the tough monetary stance of RBI...Easy money leads to spiralling inflation...Do we want interests in the range of 20%...How will the middle class service the loans?

 

[krish44]

Krish ji, why do you say that we should "stop the witch hunt against black money" ?

A lot of black money goes into productive sectors adding to the GDP .

The black economy making up of 85% cash transactions are outside the ambit of taxation.

We can sacrifice revenue of govt for growth. In any case uses these revenues for fancy schemes of govt and Govt fritters it away. the leakage of revenues to politicians and middle

men is only harming than aiding the economy. A massive govt work force and huge cabinets are getting supported with this money not aiding the common people.

Less govt without interfering with the economy will help the countries growth.If india grows it is inspite of the govt. The success in IT is because govt did not come near

it.Our businesses will do well if the govt leaves them alone. Our people will also benefit due to goods and services are made cheaper due to less indirect taxes .

 

[krish44]

Only posterity will appreciate the tough monetary stance of RBI...Easy money leads to spiralling inflation...Do we want interests in the range of 20%...How will the middle class service the loans?

Tough money stance is crippling the economy.It is badly overdone.

Figures of inflation being lower does not cover food inflation. We have surplus of rice and wheat but gdal prices are hitting the roof. Costly food is making life difficult for all.

Add to it lowering interest deposit rates by banks is hurting only the poor and middle class [retd types] who live on it.

These classes do not borrow and buy luxury apartments. The richer classes are not bothered by bank rates. They borrow mostly not to return the money.

Due to deflation , consumer goods have no takers. We are getting into a depression.

Large scale spending led by govt alone can kick start the economy. Private players and others sitting on mounds of cash will then only develop confidence to do

anything productive . When threats of black money hunts are launched , who will take the risk to do anything?

 

[Vaagmi]

This makes interesting reading. It appears there is no end to the Indian ingenuity in playing games. Now the instead of private assets reconstruction companies it is going to be Govt. owned Company taking over the dirt from banks inorder to make their Balance sheets shining and attractive. Is it not public money? where from will the money come to capitalise these Govt Reconstruction Corporations? And what is the cost?

Govt plans to defuse ticking bank bomb​ ​ P Vaidyanathan Iyer​ The Financial Express​ Published on February 1, 2016​ ​

Finance Ministry, Niti Aayog pitch for state-owned asset reconstruction company with govt, RBI contribution​ New Delhi, January 31: With the bad loan crisis casting a shadow on the ability of banks to lend as and when private sector investment picks up, the Prime Minister’s Office (PMO) is deliberating on a proposal to set up an asset reconstruction company with equity contribution from the government and the Reserve Bank of India (RBI). It’s learnt that the Union Finance Ministry and Niti Aayog have separately pitched for “taking the tumour (of non-performing assets or NPAs) out” of the banking system. Apart from making balance sheets look better, a recapitalisation will enable banks to service the growing credit needs of the economy. Finance Minister Arun Jaitley has convened a meeting in mid-February of experts, including from the International Monetary Fund (IMF), to discuss ways to operationalise an asset reconstruction company, or ARC. The IMF is expected to share its global experience on a relief programme for troubled assets. An ARC acquires bad loans from banks and financial institutions, usually at a discount, and works to recover them through a variety of measures, including sale of assets or a turnaround steered by professional management. Relieved of their NPA burden, the banks can focus on their core activity of lending. “There has been a lot of discussion within the government on the crisis in banking. The RBI, too, has taken some tough action during the last year-and-a-half. But bank NPAs continue to be the ‘white elephant’ in the cupboard. Too little has happened all this while to pull the elephant out,” a senior government functionary, who did not wish to be named, told The Indian Express. It’s learnt that the finance ministry first floated the idea of an ARC last May, following which a presentation was made to the PMO. But RBI Governor Raghuram Rajan, who was present, was not comfortable with the idea of government equity in ARCs and feared a “moral hazard”. “Why should the taxpayer pay for reckless lending by banks in the past? The RBI was averse to the idea of government or the RBI contributing equity to the asset reconstruction company,” said a source. Tightening the screws over banks and errant borrowers, the RBI then took a series of important steps during 2014-15. These include tightening the Corporate Debt Restructuring (CDR) mechanism, setting up a Joint Lenders’ Forum, prodding banks to disclose the real picture of bad loans, asking them to increase provisioning for stressed assets, introducing a 5:25 scheme where loans are to be amortised over 25 years with refinancing option after every five years, and empowering them to take majority control in defaulting companies under the Strategic Debt Restructuring (SDR) scheme. With these steps, Rajan hopes banks would be able to clean up their balance sheets by March 2017. Banks, however, want more time to achieve this. Even as the ARC plan was being discussed in the finance ministry between May and July last year, the government announced in August that it would provide Rs 70,000 crore towards recapitalisation of banks over the coming four years. But there is a growing sense in the government that mere recapitalisation without taking the bad loans out may not suffice. “Equity infusion by the government and the RBI would lend credibility to the ARC. Government’s direct presence will also put pressure on banks and corporates to own up their bad loans and prompt them to shed these by taking a hair cut,” said a source involved in the deliberations. A source said tackling the bad loan mess requires multiple instruments. “An ARC is a potent instrument,” the source said. While there are more than a dozen private ARCs already registered under the SARFAESI Act, they have achieved little. The 15 ARCs have a combined net worth of Rs 4,000 crore and as on March 2015, they have managed to resolve less than a third of the assets acquired. “(The) Government and RBI have to be invested to bring credibility. Moreover, public sector banks are scared to sell to private ARCs for fear that the quantum of hair cut can always be questioned by the government’s auditor, vigilance or at worse be probed by the intelligence agencies,” the source said. Each year, the government ARC can buy NPAs to the tune of, say, Rs 1 lakh crore, by running an auction amongst banks. “In an auction, the ARC can choose the assets. It will be for the banks to make it attractive for the ARC. The banks will automatically take a haircut in the process. This will ensure they are paying a price for mismanagement and do away with RBI’s concerns of a moral hazard,” another source said. The biggest challenge, according to officials familiar with discussions on the issue, is to get professionals or specialists to run the ARC. “An operation of this scale has not been run in India so far. The ARCs can float different funds for different sectors. If the government agrees to guarantee the principal of the bonds floated by ARCs to raise funds for further acquisition of NPAs, it will attract domestic as well as foreign investors,” the source said. Bad Loans For the year-ending March 2015, gross NPAs of scheduled commercial banks stood at Rs 3.02 lakh crore in absolute terms, or 4.6 per cent of total advances. Six months later, this rose to 5.1 per cent. The stressed advances ratio — stressed assets is defined as bad loans plus loans that have been restructured by banks — increased to 11.3 per cent in September 2015 from 11.1 per cent in March. Private estimates of stressed assets, however, are significantly higher and vary between 17.5 per cent and a quarter of all bank advances.

 

[krish44]

Buy loss making PSU bank shares at rock bottom prices .

You might get a windfall in course of time.

This is as good as a free ticket to riches.

There is no morality left in governance.

Will RBI help the loot?

The business lobby is waiting for a bail out by a very obliging govt.

We can ride the bail out wave for prosperity.

Let us watch what happens in new budget.

PSU banks will definitely get recapitalised.

Will bad assets vanish from balance sheets?

 

[Vaagmi]

Buy loss making PSU bank shares at rock bottom prices .

You might get a windfall in course of time.

This is as good as a free ticket to riches.

There is no morality left in governance.

Will RBI help the loot?

The business lobby is waiting for a bail out by a very obliging govt.

We can ride the bail out wave for prosperity.

Let us watch what happens in new budget.

PSU banks will definitely get recapitalised.

Will bad assets vanish from balance sheets?

krishji,

You may buy some of these stocks with strong fundamentals (keeping aside the NPAsand their matching provisions) at rock bottom prices when they reach that level. This you have to do carefully and buy just adequate numbers to bring down your averaging effect to reasonable levels. That will help you sell quite early when the prices start picking up without waiting for the prices to reach dizzying levels which may not happen or happen after a long time - again compelling you to factor in holding cost.

 

[krish44]

Vaagmiji
Thanks for the tip.

Only no one knows the rock bottom .lol

Even large A class banks have lost as much as 40 to 50 percent.

My dilemma is whether a weaker one is better than a stronger one.

One oscillates between decent banks in private giving reasonable 20 to 25 % and Govt banks waiting for a bail out with a high risk high return . When some PSU bank

gets into a downward bottomless pit, One tends to be tempted to close eyes and take some risks with a philosophy - excellent windfall or total loss.and buy up these.

Let me see for further distress in PSU banks before adding to my collection

 

[Vaagmi]

Vaagmiji
Thanks for the tip.

Only no one knows the rock bottom .lol

Even large A class banks have lost as much as 40 to 50 percent.

My dilemma is whether a weaker one is better than a stronger one.

One oscillates between decent banks in private giving reasonable 20 to 25 % and Govt banks waiting for a bail out with a high risk high return . When some PSU bank

gets into a downward bottomless pit, One tends to be tempted to close eyes and take some risks with a philosophy - excellent windfall or total loss.and buy up these.

Let me see for further distress in PSU banks before adding to my collection

Govt Bank, private Bank, large bank, small bank all banks in India get their loan customers from the same feed stock. So it is just a question of time before private banks too get their wounds to nurse.

In the case of govt banks the babus could afford to be careless and retire after which after a few years only the advances will becpome NPA and so they will have nothing to worry.

In private banks they will be a little m ore careful because there is no big daddy to open his coffers. They will have to go to the market for capital and investors will look for negative prices for the shares. LOL.

 

[yesmohan]

No Corporate giants talk to the Managers / AGMs / GMs of the Banks. They will not talk below the rank of Chairman / MD
level or through Central Ministers / Ministry of Finance.

Now, Government have given a long rope to the Defaulting Industrial Giants and they are enjoying.

In case the Industries are taken over by the Banks as in the case BINNY Mills and assets sold over at least in one two cases it will be a lesson to DEFAULTERS who run the Industries profitably but shows accounting loss and thereby evade tax in addition to avoiding repayment of the loan to the banks.

 

[krish44]

Govt Bank, private Bank, large bank, small bank all banks in India get their loan customers from the same feed stock. So it is just a question of time before private banks too get their wounds to nurse.

In the case of govt banks the babus could afford to be careless and retire after which after a few years only the advances will becpome NPA and so they will have nothing to worry.

In private banks they will be a little m ore careful because there is no big daddy to open his coffers. They will have to go to the market for capital and investors will look for negative prices for the shares. LOL.

I agree even private banks may face the issue of NPAs but they are smarter in hiding it.

Besides they have recovery agents who would stoop to anything to get the money back.

Credit Card recovery agents are notorious and are known for resorting to criminal practices of intimidation and threatening by local shady elements.

 

[krish44]

No Corporate giants talk to the Managers / AGMs / GMs of the Banks. They will not talk below the rank of Chairman / MD
level or through Central Ministers / Ministry of Finance.

Now, Government have given a long rope to the Defaulting Industrial Giants and they are enjoying.

In case the Industries are taken over by the Banks as in the case BINNY Mills and assets sold over at least in one two cases it will be a lesson to DEFAULTERS who run the Industries profitably but shows accounting loss and thereby evade tax in addition to avoiding repayment of the loan to the banks.

Govt taking over industries for dues is the best joke I have heard.

Only useless assets after stripping are left by management for govt to take and enjoy.

You must be living in some dream world.

 

[yesmohan]

Govt taking over industries for dues is the best joke I have heard.

Only useless assets after stripping are left by management for govt to take and enjoy.

You must be living in some dream world.

In the 90s, State Bank of Bank of India took over the assets (a lot of lands in Chennai city limit)of the Binny Mills at a little bit less than the then prevailing market price, for the dues.

I think that SBI still holds some parts of the taken over lands(4/5 acres) in Perambur , an area well in city limit.The present value may be more than 300 crores.
Mine is not an half baked comment.

 

[auh]

I personally know of companies that get loans from bank agains hypothecation of stock.... basically stock that has rusted and not fit for any use except perhaps for their book value...

Corporate practices are not at all in the overall interests and serve only to fill their selfishness and greed.

Banks need a whacking.

 

[krish44]

In the 90s, State Bank of Bank of India took over the assets (a lot of lands in Chennai city limit)of the Binny Mills at a little bit less than the then prevailing market price, for the dues.

I think that SBI still holds some parts of the taken over lands(4/5 acres) in Perambur , an area well in city limit.The present value may be more than 300 crores.
Mine is not an half baked comment.

I do not doubt your statement.

BINNY management could not even preserve and protect their asset from a nationalised bank .lol

It is a sad commentary on its management