Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Tuesday, 19 July 2016

Robbing Peter To Pay Paul ?


It has finally come to pass

NDA government is pumping in Rs 22,915 crore in 13 Public Sector Banks to help them " Re-Capitalize "

Meaning ?

#  Rob the tax-payers ( Peter ) of this amount and pay it to these 13 banks ( Paul )

So that , in turn , these bank can write-off this debt owed to them by 8167 " Wilful Defaulters " ( the Ultimate Robbers ? )

And this is just the BEGINNING !

This process of " Bailing Out " of the banks ( both Public Sector and the Private Sector ) , will continue for next 4/5 years till the entire NPA ( Non Performing Assets ) of approx Rs 7 lakh*crore gets written off

All the while when poor farmers , unable to repay Rs 20,000 loan ( when monsoon fails ) , continue to commit suicides ( 17,000 each year )

Apparently , not allowing banks to go under ( or , for bank officers to forgo their annual performance bonuses ) , is GOOD ECONOMICS

I only wish , those farmers had borrowed Rs 50 lakh each ( instead of Rs 20,000 ) and then refused to repay !

--------------------------------------------------------------------------------------------------------------------------------

20  July  2016


www.hemenparekh.in / blogs

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