Business Standard
Shishir Asthana, Mumbai, August 31, 2012
The Mahapatra Committee recommendations could erode a large portion of public sector banks' net worth
Public sector banks are in trouble and have betrayed this fact by objecting to the recommendations made by Reserve Bank of India’s committee on loan restructuring. The Mahapatra Committee set up by the central bank had suggested the abolition of regulatory forbearance while recasting debt after two years. If implemented, this would mean that all restructured loans will have to be classified as NPAs (non-performing assets).
Credit rating agency Crisil has revised its loan recast figure to Rs 3.25 lakh crore for 2012-13 which is a sharp rise from Rs 2.18 lakh crore for 2011-12. Nearly 80 per cent of these loans are in the books of public sector banks.
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Comments
Rain...
My Dear Rain,
You would be very interested in the podcast this weekend on TFMetals Report.com. These guys are insiders and I only lead you to these because it is interesting that they "aren't David Wilcox" but are coming up with the same basic story on the shift in gold to China et al and the new monetary system and the devastating effect on western banks. China is forcing gold out of western hands and "it ain't their's to give" which is causing huge lawsuits--really like Ben and David have been saying with a whole lot more technical information than B & D explain. I like understanding the complexity of the really amazing troubles these bankers have gotton into. It is a 60 minute pod cast but you will be 60 minutes smarter let me tell ya! ;)
Thank you, Listener
Thanks for the tip, Listener. namaste