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Showing posts from July, 2015

Policy Paralysis Ahoy !

An artist depiction of sleep paralysis 13 lakh crores, that is the NPAs the public sector banks have accumulated. They are not showing no signs of turning good. 4-6 lakh crores is what that the PSBs require for recapitalization and to meet with Base III norms over next few years and it is a moving target, moving up that is. Bank after bank is reporting abysmal earnings. IOB takes the cake. It reported 1500 cross loss last financial year. At the end of First quarter of 2015, it has reported that its NPAs have risen to 16%.of its gross assets from the earlier 10%. RBI feels the asset quality norms are still too lax and are actually encouraging loan default! The Bank staff have long stopped considering themselves as employees of a commercial organization. They are outstanding specimens of what is called as 'rentier class' in leftist parlance. Right from comparing themselves to Central Government employees and seeking jobs for dependents on 'compassionate groun