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  • Category: Miscellaneous

    NPA do we need to worry about it?

    Every day either the papers or news channels report about NPA (Non performing assets) of banks. The share value of Axis Bank fell around 70 rupees each since the quarterly results were announced last week. This is quoted to be primarily because of an increase in NPA.

    Many banks have huge NPAs. If we go by the figures the NPA for Indian banks in estimated to be Rs 2.2 trillion rupees(16-17) and Rs 3.3 trillion rupees (17-18).

    These are basically bad corporate loans that have to be written off. Ultimately the simple analysis means that the already burdened taxpayer will be further indirectly made to bear these huge loses as I don't think anyone will be willing to take the responsibility.
  • #612698

    How the NPA's get accumulated into the bank debts ? Quite simple. The loan sanctioning ways of certain banks are purely based on the face value of the customers and their submitting papers which are highly managed and manipulated with valuable suggestion and ideas from the bank field officers who were well versed in duping their own banks and favoring customers with huge loans and having a cut for their favor. Like this all the public sector and even private sector banks given the loans left and right and now facing the problem of recovery which is negligible or nil. Ultimately these loans would be waived and the defaulters would go scot free.

    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #612725
    NPA value is increasing very much from year to year. They worry about the loans given to small shop vendors and farmers but never bother about Malyas. While giving loans to small people they will ask 101 questions and proofs and certificates and finally may sanction 50 to 60 % of the loan amount asked for. But when it comes to big corporations, Banks will sanction loans without asking any security separately and will sanction very early. In this process, the bank Officials may be getting so many benefits from the customer. So they don't bother much about loan repayment etc. They shoot out letters and even tell the customers how to reply it also. Finally, the amount will be added to NPA. This is the drama goes on always in many cases. Ultimately the taxpayers who are made to pay tax from their nose will get burdened furthermore to make up the loss there. This procedure is to be stopped and loan sanctioning should be made more transparent to the public. The justification for giving loans to that extents should be known to all.
    always confident

  • #613202
    Glad that both views are similar that over a period of time the NPA is left unrecovered or cannot be recovered and finally written off with the taxpayer footing the bill slowly over a period of time.

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