Banks misguiding investors on NPAs

It is a fact that when system identifies NPAs,the figures are more as the system does not discriminate the borrowers and follows the guidelines of RBI.When the NPAs are identified manually,the human intervention helps some borrowers to project a better image and figures get camouflaged.Further there are umpteen ways to hide NPAs which the system may not follow unless the programmes are made that way.There is always a trade off between the Management and Auditors of banks and the NPAs get generally underestimated.When the system generates NPAs,it is bit difficult both for the Auditors and the Management to underestimate NPAs,though it is not fully ruled out.All these years,investors have been wrongly informed of the position of NPAs is a fact which the Deputy Governor also knows as he was all along a commercial Banker before he took over as DyGovernor.The auditors though are independent on paper,as long as they are being paid by the Banks they audit, they get influenced,to adjust NPAs.


 Dr.T.V.Gopalakrishnan
(This comment is in response to the article Banks misguide investos on NPAS in Business Line dated 28/06/12).

IT honchos and wage cut

IT companies honchos take a salary cut is no doubt good news to fool the public and not a scarifice to be worth emulating or taken note of. They are taking dividends in crores of rupees and they do not know what to do with the money they earn. No grouse or grudge on that. They have undergone the trouble and sacrificed a lot to bring up the companies and they deserve what they enjoy.But taking a pay cut in their salaries should not be projected as a great sacrifice they do is not easily digestible to justify deferment or wage cut to their employees. These honchos can sacrifice part of their dividend and take care of employees. Let not them fool the employees or the public as everybody knows that the entire dividend is tax free thanks to the unjustifiable taxation policies in this great economy where every transaction undertaken by common man is taxable under service tax and indirect tax and he is finding hard to make both ends meet because of persisting high inflation and what not? Let the honchos pl not make public the sacrifice they do as employees know how exploitation takes place in each and every company and public are taken for a ride by our so called democratic way of governance.

(this has been piblished in ET dated 27/06/12 in response to the news item IT honchos take a wage cut)

Elites are insensitive to fraud

Our elite are not only insensitive to fraud, they are insensitive to all accpted values and ethics. They can get away with anything with the backing of power and money.Bureaucrats are at their beck and call and they can buy all enforcement authorities.Let us appreciate that Raj Gupta has to go to jail for the insider trading and in US law is made applicable without going into the background of the person and backing of money and influence. Insider trading and malpractices right in the fixing of premium for IPOs and many others are very common in India although SEBI has intentions to stop them.Let us not make the mistake of comparing our enforcement standards with those obtaining abroad. Here the simple thumb rule is show me the person,we will show the rule and its enforceability. Connection and contacts matter here and this accounts for the innummerable scams, corruption and accummulation of black money. Nobody can find fault with our various laws which are free from flaws.

from: Dr.T.V.Gopalakrishnan

 

(This comment  in response to an article by B.S.Ragghavan appeared in BusinessLine dated 25/06/12)

 

Rupee depreciation who gains who loses

The depreciation affects the common man more than any body through inflationary pressures has not been highlighted. Importers and borrowers of money from abroa, students and tourists going abroad are also affected badly and of these some are avoidable. import of gold particularly by banks and the Govt for sale of gold coins can be completely curtailed for sometime. Tourism can be given a go bye for a temporary period. Like that unnecessary imports can be reduced or avoided totally. There are measures but willingness is that matters. The Govt has to take the initiative.
(This appeared in ET dated 23/06/12 in response to an Article Rupee depreciation who gains who loses)

Stupid Rules and smart Indians

''The article reads well . The fact remains that in India only smart people make the life miserable for people other than politicians and VIPs through their stupid rules. Stupidity is for commoners and VIPs escape.These sort of stupid rules are there everywhere in all Government institutions and even in Private organisations. The author can spend his entire life time by writing such matters in India which are in abundance.This is the secret of our Civil services efficiency. so long as people put up, let the tamasha go on is the simple rule followed.''

(This appeared in Times of India in response to an article in Times of India dated 23/06/ 12)

Monetary policy Measure unease

The author has been very forthright in saying that the RBI gave different signals to the market and market being influenced by more of speculative tendencies than the realities and fundamentals of the economy which have been moving from bad to worse,has been projecting reductions both in CRR and Repo rate.Banks and industries always clamour for more concessions and reliefs without going into minute details of their demands and any justification taking into consideration the seriousness of issues faced by the economy.Fortunately,the Reserve Bank kept the policy rates unchanged without giving heed to the FM's directions,markets' expectations,industries'demands and banks appeals.The opaqueness in interest rates needs a serious investigation by the Reserve Bank and the banks'tendency to maintain high NIM without passing on the benefits to genuine and good borrowers has to be controlled The ills of the Economy are not only the problems of the Reserve Bank and all stakeholders have to share.

from: Dr.T.V.Gopalakrishnan

Posted on: Jun 21, 2012 at 21:52 IST

 

(This is in response to an article appeared in BusinessLine dated 21/06/12) 

Should india provide $10 billion for Eurozone Fund

 Dr.T.V.Gopalakrishnan , Mumbai , says: Nothing wrong in extending the financial support to bail out Eurozone. Though it may have repurcussions on our already strained financial position,this can be made good if Eurozone improves its economic performance which is very essential for the entire world paricularly for emerging economies like India.This is a good gesture shown despite the economic crisis the country is at presnt placed.
( This appeared in ET dated 20/06/12).