Indian Banking Scenario – 8

ramkey By ramkey, 20th Sep 2013 | Follow this author | RSS Feed
Posted in Wikinut>Money>Investing

Indian Bank will be bailed out every time its net worth runs out. But other banks should be careful. Public sector banks still dominate Indian banking scenario. Farmers’ loan waiver has been eaten by the bank staff because they also consider themselves as farmers. You can dial *99# soon to know your bank balance.

Indian Bank’s Case Is Different

RBI is contemplating to keep brokers and real estate agents out of purview of issuing new banking licences. This is because these people have been dealing with assets whose price could fluctuate widely and the banking funds could be misused at the cost of the customers. Here one may have a doubt. Indian Bank has been widely misusing the customers’ funds but still it has been bailed out by the government. This is because the ruling politicians have asked Indian Bank to lend funds to their friends and cronies and then bailed out the bank in order to lend again to the very same cronies. But the government will not bail out the other banks.

Public Sector Banks Still Dominate Indian Banking

As per the 2011-12 data, there are 82140 branches of various banks in India. Out of this, 67466 branches belonged to public sector banks, 13452 to private sector banks and 322 to foreign banks. There were 95686 ATMs out of which 58193 belonged to public sector banks, 36079 to private banks and 1414 to foreign banks. Total deposits were Rs.64.5 lakh crores out of which Rs.50 lakh crores were garnered by public sector banks, Rs.11.7 lakh crores by private banks and Rs.2.8 lakh crores by foreign banks. Loans amounted to Rs.50.8 lakh crores out of which 38.8 lakh crores were advanced by public sector banks, Rs.9.7 lakh crores by private banks and Rs.2.3 lakh crores by foreign banks.

Bank Staff May Be Treated As Farmers by the Government

SEBI Chairman U K Sinha’s term ends next February and he may continue. India’s largest bank SBI’s Chairman Pratip C Chaudhuri’s two year term comes to a close this month and the government will be looking for a pliable person during an election year to fill the vacancy. CAG report points out that the farm loan waiver has been eaten up by the bank staff. But the government is unlikely to take action as a substantial chunk of the booty would have gone into the pockets of the politicians and bank executives. Just as the government stated that Robert Wadhra was a small farmer, the government may now say that the bank staffs are also farmers as they cultivate flowers in pots in their houses.

Dial *99# to Know Your Balance

RBI has stated that portability of bank accounts is not feasible in India. But another RBI working group suggested banks to increase their jewel loan lending. It also proposed setting up of Bullion Corporation of India to provide refinance for these sanctioned jewel loans. It is a good suggestion as jewel loans are risk free and provide a good income to the banks. Moody’s has already given a negative outlook for the banking industry because of higher NPAs. The government has approved Rs.12517 crore capital infusions into the public sector banks in order to meet Basel III norms. RBI has cautioned that the risk to banking sector is increasing which may result in decline in stability of the banking system. For this banks should not divert resources from needy developmental activities to speculative commodities trading. One positive news after discussing all the negatives is that banks have tied up with the telecom companies and the customer can very soon dial *99# to know his balance with any bank. The customer can also transfer funds from one bank to another, from one account to another. This charge is free.


Bank Staff Ate Farmers Loan Waiver Funds, Dial 99 To Know Your Bank Balance, Farmers Loan Waiver, Indian Bank, Public Sector Banks

Meet the author

author avatar ramkey
I am running a coaching centre and teach Mathematics, Physics and Chemistry for students appearing in competitive examinations like IIT, SAT etc I am interested in journalism as a pastime.

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author avatar Lady Aiyanna
21st Sep 2013 (#)

You have a lot of documentation that you need to submit to be able to get a farmers banking loan.
I know that they include certificates from the original farmland which is ancestral, has to be produced including a lot of other documentation apart from a 250 page long declaration which needs about 4-5 hours to read and sign before a loan is gotten.
I know my laws out there and the fact remains that I come from a family wherein my dad was from the Government and as government employees you are always susceptible to income tax raids if you own things beyond your income. We know our budgets well and our records are always clear as crystal in all walks of life as we are constantly being monitored. So I have no idea which corrupt bank official you are talking about but all you have to do is email or send a letter to the fraud surveillance unit to investigate them. Know how to do that too.

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author avatar ramkey
21st Sep 2013 (#)

The rules and regulaions are all thre in paper. But the implementing officers are corrupt. That is why the entire networth of Indian Bank got wiped out. Income Tax officials can be bribed and silenced. If you know the ruling party members intimately, you are the king or queen in India and whatever you do will not be questioned. Enquiries and raids conducted are for the name sake only and not real.

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author avatar Lady Aiyanna
21st Sep 2013 (#)

That is with State Bank of India and Canara Bank which are both government owned.

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