A question of who deceived who or a question of systemic failure in our culture and society

Recent Article by Bharat Jhunjhunwala on How banks are deceived by companies points towards a systemic failure in our culture and society in general. So the result is, a father son duo asking for a ₹ 5 Cr. loan is scrutinized to the hilt and even a single red flag is enough for rejection while a large corporate asking for a ₹ 5000 Cr. is scrutinized to a minimum and many red flags are overlooked

SELECT“A question of who deceived who or a question of systemic failure in our culture and society”

Finance in India: Business reforms or ? About Bank Mergers

As always, facts are being quoted and reported without evidence or investigations by various people groups and media. The government assumes that this will bring in efficiency and reduce dependence on both RBI and the government. Obviously the banking leaders are supporting the decision. Employees are against it citing some logic but everyone knows whats the real issue. Left as always is supporting them. Perhaps there are no independent academicians, researchers, economists or management experts in our country as they have not been quoted. No one cares or has the time to report on the hard facts.

SELECT“Finance in India: Business reforms or ? About Bank Mergers”

Business is Risky: Secured lenders should have exited before insolvency occurred.

The case concerns the country’s most high-profile bankruptcy, Essar Steel India Ltd. Insolvency judges recently ruled that creditors whose claims are backed by collateral won’t get preferential treatment in the $6 billion sale of the company’s plant to ArcelorMittal. Secured creditors will stand in line with unsecured creditors.

SELECT“Business is Risky: Secured lenders should have exited before insolvency occurred.”

Global MNCs also trapped in India’s Infrastructure Leasing & Financial Services bond squeeze

What should be worrying for these MNCs and their employees is that they fall in the category of unsecured creditors and their money is not at all safe due to the level of toxicity. Bata India employees statutory PF, Glaxo India, Otis Elevator, Sumitomo Indian Staff PF, McCann Erickson India EPF, Lufthansa German Airlines employees local PF, Philips Electronics India, BASF, Novartis, Pernod Ricard, Bechtel India, JP Morgan, Nestle, shockingly Canadian High Commission India Staff, British Airways pls staff, Texas Instruments India, Volvo India, Cisco Systems India, Sanofi India, Sapient Consulting, BBC Worldwide India, McKinsey Knowledge Centre and Shell India. American Embassy School PF, Barclays Bank Plc India, American Express India, Societe Generale EPF, British Airways has many entries ranging from Staff Pension Fund to Cabin Crew Pension Fund, ditto for Philips, Alcatel Lucent, Mercedes Benz R&D India, Procter & Gamble Executive Pension Plan, Adobe Systems, HP Globalsoft, Schlumberger, CapGemini, Cadbury India, Goodricke Group, Gillette, et al. This list compiled by MCA is as recent as December 31, 2018.

SELECT“Global MNCs also trapped in India’s Infrastructure Leasing & Financial Services bond squeeze”

Reducing Bank’s lending risks will benefit which segments of Indian society?

Indian credit bureaus are waiting for the final draft of the personal data protection law to understand whether they can use alternative data for generating scores, helping assess the creditworthiness of potential borrowers lacking loan records. Alternative data for credit bureaus are data sets acquired from sources outside the core banking systems, such as those from telecom companies, payment firms, and government databases. These could supplement existing core bank data with bureaus in the analysis of transaction behavior patterns of customers.

SELECT“Reducing Bank’s lending risks will benefit which segments of Indian society?”

Personal insolvency should be approached carefully and in a planned manner

Today, we have approximately Rs 77 lakh crore as outstanding non-food credit. Out of this, industry accounts for about Rs 26 lakh crore and the services sector accounts for about Rs 21 lakh crore. These two put together accounts for Rs 48 lakh crore. It is 70 per cent of non-food credit outstanding. We are left with 30 per cent which we need to address now.

SELECT“Personal insolvency should be approached carefully and in a planned manner”

What if: you find yourself in a scenario where you have a limited budget to start a business

In cases where a person has money to start a business, he or she can take two pathways. One which leads to starting a business and then putting in money as and when required. And secondly, analyzing the kind of money that would be required and then starting the business. Here, I discuss the second pathway. Remember, there is nothing wrong with the first pathway.