WHERE THIS MONEY GO, WHO ARE ACCOUNTABLE AND ANSWERABLE. PL. OBSERVE: Bad loans mountain grows, risks delaying bank clean-up Stressed loans in India's banking sector crossed $138 billion in June, central bank data reviewed by Reuters shows, an increase of nearly 15 per cent in just six months that suggests a state clean-up effort will take longer and cost more than expected. Fixing the mountain of bad debt weighing down India's banks is vital for Prime Minister Narendra Modi's government to revive weak credit and investment growth and put a faltering recovery in Asia's third largest economy on a firmer footing. India's central bank has set a March deadline for banks to fully reveal problem loans on their books. When lenders disclose bad loans, they need to take writedowns that hit their bottom line and eat into equity. The latest data obtained by Reuters through a right-to-information request showed stressed loans rose to Rs. 9.22 lakh crore ($138.5 billion) as at end-June, from Rs. 8.06 lakh crore ($121 billion) in December. The end-December $121 billion figure has been cited by the government and bankers as the peak of stressed assets in the banking sector. Bad loans of private banks balloon 62.5% in Q4 RBI-mandated review reveals ICICI, Axis have most NPAs; outlook for others better MUMBAI, APRIL 29: With the RBI tightening provisioning norms, the bad debt problem is knocking at the doors of private sector banks too. Cumulative gross non-performing assets (NPAs) of leading private sector banks, including ICICI Bank, Axis Bank, HDFC Bank, IndusInd Bank and YES Bank, have surged 62.5 per cent to ₹38,227.14 crore in the fourth quarter of 2016 compared to ₹23,519.89 crore in same quarter last year. The NPAs have grown 18 per cent sequentially from ₹32,368.14 crore in the third quarter, ended December 2015. The rise has been due to the asset quality review (AQR) process ordered by the Reserve Bank of India. As part of the AQR exercise, the RBI had asked banks to review certain loan accounts and their classification over the third and fourth quarter of FY16. Standing on the edge? ICICI Bank and Axis Bank accounted for 85 per cent share of the total gross NPAs of private banks as at the end of March 2016. ICICI Bank on its own accounted for 68.6 per cent of the total NPAs. The largest private sector bank’s gross NPAs in terms of percentage to gross advances has jumped 202 basis points year-on-year and 108 basis points sequentially, to 5.8 per cent. A mixed bag Gross NPAs as a percentage of advances for other banks vary. HDFC Bank has remained stable over the last four quarters; others have seen a rise of 8-30 basis points in the fourth quarter of FY16 compared with the first. India bad loans getting messier MUMBAI, MAY 12: India's bad-loans problem looks much worse than lenders have been willing to acknowledge, heaping pressure on banks' profits and further tightening the screws on distressed debt that could be bigger than New Zealand's $170 billion economy. The magnitude of the debt-mess was laid bare late last month when two of India's largest private sector lenders provided unprecedented guidance on non-performing loans, underscoring repeated warnings by Reserve Bank of India's governor Raghuram Rajan on the need to clean up banks' balance sheets. The dangers are clear cut. Increasing provisions to cover rising bad loans are likely to hurt banks' profits and curb credit growth, stoking a vicious circle of lower economic growth triggering more defaults and choking off business investment and production. Indeed, banks' loan growth at 10.7 per cent in the last fiscal year ended March 31, was the slowest in nearly two decades, partly on lower lending to debt-heavy sectors such as iron and steel that account for the lion's share of bad debt. Quick Facts * Distressed loans 60 per cent higher than reported $121 billion - Fitch * Axis Bank predicts tripling of bad loans in two years * Private bank disclosures signal bigger problem at state lenders Profits at most lenders have also taken a hit in the past six months as they set aside a higher sum to cover for defaults after a clean-up exercise ordered by the RBI. “The banks need to keep provision covers high,” said Abhishek Bhattacharya, a director at Fitch's Indian affiliate, India Ratings and Research. “That all points to the fact that the earnings should continue to be under pressure.” Bhattacharya estimates about 13 trillion rupees ($195 billion), or a fifth, of bank loans are already stressed - bigger than the size of New Zealand's economy. That compares with 8.06 trillion rupees of distressed loans reported as of December or 11.5 per cent of India's entire bank debt, meaning more pressure on profits. Deep surgery RBI's Rajan, who wants banks to fully disclose and provide for bad debt by March 2017, is calling for “deep surgery” to clean up the balance sheets. Investors and analysts have long suspected that Indian lenders, especially the dominant state-run banks, are not disclosing the true extent of their troubled loans to avoid having to raise provisions. But granular details released for the first time last month by ICICI Bank and Axis Bank - India's no. 1 and no. 3 private sector lenders respectively - highlighted the depth of the problem. Axis Bank disclosed it had put 226 billion Indian rupees of its loans on a 'watch list', and was expecting 60 per cent of those to default within two years. That would mean its bad debt could triple from the 60.88 billion rupees reported at end-March. ICICI said some 525 billion rupees of loans to struggling sectors including steel and power had been put on watch. Moody's estimates bad loans at the 11 state-run banks it rates to be between 10.5 and 12 per cent, compared with the 7.2 per cent reported as of end-December. “The ability of (state) banks to support economic growth or to provide loans will ultimately depend on how the government will support them in terms of capital,” said Alka Anbarasu, a Singapore-based vice president at Moody's. These state-owned banks account for more than two-thirds of the sector's assets and about 85 per cent of bad debts - a major headache for policymakers keen to support a slowing economy. “It could get worse before it gets better is the sense we have,” India Ratings' Bhattacharya said. ($1 = 66.6575 Indian rupees) (This article was published on May 12, 2016) FinMin confident of speedy solution to bad loan problem NEW DELHI, AUGUST 18: The Finance Ministry is quite confident that the latest changes to the SARFAESI and other debt recovery laws would support banks and financial institutions in taking recovery actions, speed up NPA resolution and improve the quality of assets in the banking system. While cautioning that the latest legislative changes should not be seen as a “magic wand” or “doing wonders” overnight to resolving banking industry’s problems, the Ministry feels it would definitely facilitate improvements to the recovery regime. Amendments notified The Centre has now notified the amendments to the SARFAESI and Recovery of Debts Due to Banks and Financial Institutions Acts (RDDB) and made them “more responsive to the demands of present day banking. The latest changes have rationalised provisions to rebalance the interests of borrowers and lenders, while providing the latter with sufficient legislative support for speedier resolution of defaulted loans, a senior Finance Ministry official said. “There is no point in making strong statement that everything is wonderful or a strong statement that everything is bad. Because it is neither. We are watching a lot of progress in moving towards a better regime and better set of financials. Things can’t happen overnight and it takes time to resolve issues,” the official said when asked if latest legislative changes would bring dramatic improvements to asset quality situation. The latest legislative changes will simplify the resolution process and enable debt recovery tribunals to move things “little faster”, the official added. Banks’ role “Banks are commercial organisations and board-run institutions. We do not interfere in their commercial practices. Recovery is part of banking business. We have done from our side as to what is required. to provide greater legislative and institutional support to their recovery efforts,” the official said. (This article was published on August 18, 2016) more  

So much time has been devoted by concerned citizens in pointing out issues related to social security of retirees from private sector.What is important is that the concern must translate in to a position paper and recommendations which can be considered for implimentation by the government/related agencies.I also recommend the creation of a web portal which can create a network of senior citizen experts for getting associated with start ups as well as private/government agencies and earning consultancy fees. more  

Whole thing is not of interest going down and no pension plans etc. Main factor is we do not have any proper welfare scheme. All the welfare schemes are in the name of SC/ST & backward classes and Below poverty line. That is also okay, provided they benefit them. It is all corruption, which is the main factor of each problem. more  

This absolutely a sore point that has been raised by Mr.Govind. This needs utmost attention by the government. more  

Whole point is juveniles rape and dont get punished because of obscure laws and professionals who are fit like a fiddle are branded as retired at 58/60 years and discarded by everybody. This is no acceptable.The senior citizens must give a memorandum to the government and seek justice including reaappointment in corporates as is prevalent in America. more