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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday 20 February 2018

NaMo’s Achilles heel ?





Ordinary Indian citizens on the road ( approx. 1300 Million ), do not understand – nor care to understand – the difference between a NPA and a FRAUD



When they get to read following news headline :








- the only conclusion they draw is what I described in my following blog :






Tuesday, 23 June 2015



Bank Recapitalization ?




Here is a layman's understanding :



*    Bank executives give Rs 4 Lakh*Crores worth loans to   Industrialists / Businessmen
      ( who , sometimes happen to be close relatives / friends )

   
 

*    Bankers " forget " to examine past records of loan-repayments by these individuals 

     


*   Banks do not share among themselves info about " black-listed " borrowers



*   Banks " forget " to inquire if a loanee is a " Benami " company



*   Banks do not incorporate stringent clauses in loan agreements (on purpose )



*   Banks adopt " Forget & Forgive " approach to defaulters



*   For loan recovery , bankers wait for other  bankers to take the lead



*   Before taking action , bankers check-out with people in power



*   When sinking under the burden of NPA , bankers run to Government of India to bail
     them out through " Bank Re-Capitalization "

     


*   Government oblige by giving money to stressed banks, so that they can survive



*   Government rationalize its bail out by saying, " depositors must be protected " .

     Sounds so reassuring  !



*   Government then goes out and raises taxes ( direct + indirect ) to balance its
     books  ( Current Account Deficit ? )

   


In a nutshell :



*   Eventually , honest tax-payers foot the bill, one way or the other



*   7,000 + loan-defaulting swindlers spend vacation in Switzerland with family ( and
     their politician friends ) - till they are ready to borrow more !


 

*   Bankers vie with each other to " Re-Schedule Payments " and advance fresh loans to
     pay off old loans ( Rs 4 lakh Crores of NPA ).


     If EU / IMF can do this for Greece , why cannot we ?

   

*   Government will take pride in " Bold Banking Reforms "( to please IMF ? )



*   As a Nation , we are very compassionate !  We cannot let any institution die !

    We are obsessed with keeping it alive at any cost . We must, forever , keep it alive
    with artificial ventilation / blood transfusion !





    It is time to re-think : 


    When a person or an Institution just cannot be kept alive , it must be allowed to die ,
    in a dignified way !




    Would it not be far better to protect the small bank-depositors by returning their
    deposits , rather than infuse Rs 4 lakh*crores into these banks , by way of re-
    capitalization ?




    Am I missing out on something that economists know better ?



21 Feb 2018 :



I was about to miss out that despite ground-breaking / transformative reforms carried out by the NDA government during last 4 years, the recent spate of “ Bank Scams “ have convinced the ordinary citizens that ,



: Between them , the Government and the Banks constitute a gargantuan mechanism whose sole purpose is to siphon away the “ Blood and Sweat Money “ of the toiling masses to nourish the fraudsters :



This is a  VERY BAD omen for the BJP for  2019  Lok Sabha Elections  !




21  Feb  2018


    

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