Where does your 5% figure come from? almost all banks have double digit NPAs in the high teens.
Compare the respective bank's NPA against their respective profits. Y-o-Y compounded losses are piling up.
NPAs are part of the lending game but one can understand 3-5% NPAs out of 100 loans. These can be written off as business losses. What about double digit NPAs for decades? to the point where the bank itself has to be frozen. Is this the normal order of things?
The loans with the collateral are not the problem, the bank knows that procedure all too well. The problem is the complicity of banks in knowingly handing out OUR deposit money to people who have not given a collateral and who the bank KNEW beforehand is not going to repay the loan. It's one thing if the borrower turns out to be a fraud later, but the bigger NPAs are from people who have fed the system with the intention of defrauding the depositors right from the start, and they have run away from the country and the depositors are in a lurch.
Lending without collateral is not lending, it's INVESTING. When SBI gives my money to Mallya without securing a collateral, they are investing my money in his company at a risk (my risk). That's not what I make a safe deposit for. It's called safe for a reason. The bank is supposed to take a collateral of appropriate value as safety. If I wanted to make a collateral-free investment in Mallya's vision, I could have bought his company's stocks directly, instead of putting my money in SBI.
The IMF is not an apolitical or academic institution. All their comments and actions are colored by their paymaster's vested interests. India is doing fine. This quarter will shrink due to lockdown but other than that we ain't in 2008.
How do you guy's see the situation for india?
What are going to be long term effects because of this Chinese virus and how are we going to cope up with this shit?
It’s been no secret that Germany, which has a reputation as the economic engine of Europe, is in a troubling demographic predicament. With one of the oldest populations in Europe, and a low fertility rate of just 1.5 births per woman, it is only a matter of time before the rubber hits the road to affect growth in the country.
That time may be finally creeping in, and the country is poised to hit a dubious milestone in the next year that really crystallizes concerns around the demographic composition of Germany’s population.
By 2019, there will be fewer Germans under 30 years old than there are Germans that are 60+ years:
This ratio is certainly extreme on a global level – after all, 24.4% of the world population is under the age of 14, and only 12.3% is older than 60 years.
Does it make sense to invest in crude futures...This benefits us immensely. Ain't no one even talking about it. All the paints, solvents, varnishes, plastic, rubber industries will gobble up all this cheap raw material like Adriana Chechick gobbles nunnus.
If we take care of our energy needs, and somehow get scientifically advanced enough to keep up with the rest of the world in tech, we can have a completely self sustaining economy. The energy part is tricky, but at least we can concentrate on scientific advancements, so that we can produce high tech consumer products cheaply, tailor made for India. 1.38 Billion is a LOT of consumers, but they need money to consume something in the first place.Posting about Germany for context, their population is just 8 crores. This is not enough to support a consumerist society. They may be highly productive and produce a lot (hence the high income per capita) but a disproportionately high income-per-capita also needs very high domestic consumption-per-capita. They lack in the population department.
India has a thriving middle-class and more than 70% of what we produce gets consumed domestically.
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The demand always comes first, the cash follows in search of demand. Imagine you were a business owner and you figure that there is a demand for your product in Nigeria, but the people ain't rich enough to buy what you have to sell, wont you still set up a manufacturing plant in Nigeria and extend a line of credit to allow them to buy your product? Once the first generation has used your product on your credit line, the next generation will have enough money to repay your soft loan and pay for your other products as well. Same with India.If we take care of our energy needs, and somehow get scientifically advanced enough to keep up with the rest of the world in tech, we can have a completely self sustaining economy. The energy part is tricky, but at least we can concentrate on scientific advancements, so that we can produce high tech consumer products cheaply, tailor made for India. 1.38 Billion is a LOT of consumers, but they need money to consume something in the first place.
With recent discovery in Andhra Pradesh we now have as much uranium reserve as USA .When the Thorium reactors are up and running we'll be less dependent on foreign energy sources. Right now we are getting Uranium from Kazakstan.
That's already happening. Tata bought jaguar and has infuesd the tech in recent products from harrier to nexon to tigor ev. A lot of European firms are being bought up by Indian conglomerates. Mahindra even bought Australia / UK aerospace firm and is now marketing a 5 seater plane world wide.Europe will sell their know how to us. They are in dire need of money to save their economy. Just like Russia has been scavenging its military tech and selling it to India over these years, Europe will follow suit.
PS : If the IMF is so serious about ending the global economic downfall, let it come out with punitive measures for countries like the US which use economic sanctions as an instrument of economic war.
How do you guy's see the situation for india?
What are going to be long term effects because of this Chinese virus and how are we going to cope up with this shit?
IMF was always an American stooge. Nothing new here. Global economic system is now broken it's each for his own now.PS : If the IMF is so serious about ending the global economic downfall, let it come out with punitive measures for countries like the US which use economic sanctions as an instrument of economic war.
No use trying to act innocent now when the IMF itself participated in these sanctions which had no economic purpose and which did not gel with their mission statement. They were purely geo-political moves.
India has always maintained that unilateral economic sanctions are a violation of WTO norms, still the US keeps using it.
Everyone has to save their own economy, ain't nobody care about IMF, and ain't IMF care about nobody either.
Lol IAS is a meritocracy. ---- what we really need is high skilled technocrats in system. ---- India need a disciplined workforce groomed in scientific manner. --- most Indians from what I observe are susceptible to flattering. --- are emotional. --- are to defensive instead of ignoring things. --- simply they lack discipline --- just look how western conduct there media news, and other thing. --- no music and other low grade Bollywood crap like we see here. ---- proper discussion on topic. --- to much macho culture pumped my media lol and low IQ politician including current dispensation and it's bots on social media are ruining another generation.India and its academic institutions and people need a fundamental rethink of how they approach problems. For years, decades, centuries probably Indians have looked out instead of in. Approval from a foreigner means more than approval from a fellow Indian. Instead of relying on the IMF and all this other stuff, follow the China model. Send the best to study in the US at the top institutions. Bring them back afterwards. Undergraduate, Masters, PhD. Their experience and expertise should then be put into the universities in India, but not just at a teaching level but at a designing level.
Simultaneously, stop worrying about what the IMF, the ABC, the QED etc all think about you. Rescind visas for journalists who continue to slander the government. If they do not change what and how they write, kick them out. You have a right. You are a civilization much older than any of these outlets put together.
Restructure the society. Absolve the IAS and bring in true meritocracy. Protests will be temporary. Use intelligence, security, and home ministries to predict where they will be and stop them before they happen. Do the same for land and labor reform.
Ban foreigners who come for ministry work, it doesn't matter the religion. This isn't needed in the country and will only divide it further. There's more too but this is all I have off the top of my head
Tata ne puray desh ko chuna laga Diya. --- tum in charsioon ke gun gaan chood do.That's already happening. Tata bought jaguar and has infuesd the tech in recent products from harrier to nexon to tigor ev. A lot of European firms are being bought up by Indian conglomerates. Mahindra even bought Australia / UK aerospace firm and is now marketing a 5 seater plane world wide.
Chinese did the same at a much larger scale and that tech assimilation is the reason why Chinese consumer products have become so much better at least the medium to high priced once.
This is new wisdom for me. For last 10 years everybody told me that if i had to buy stocks, i must have 7-to-8-to-10 years of "maturity period". Now i get that actually the view should be for 20-30 years.The value paradox kicks in at such a time. Meaning, we're buying a stock because it is trading at a discount to its previous value, by that yardstick, the steeper the discount the better the purchase. But if it were such a good stock then it wouldn't have given such a steep discount. So the question arises, do you buy something that has fallen so steeply, or do you buy something that has not fallen as much, considering their relative resilience? decisions, decisions.
It could go either ways. The cheaper ones could bounce back if they were good or become even cheaper. The expensive ones could either be very strong stocks or just that their correction is pending and they may fall after we buy. Moral of da story be, just price alone cannot be a metric for judging the quality and 2 years is not a good enough fermenting time. Just 45 days of correction has evaporated 5 years of gains. The gains are incrementally slow and the falls are sharp and quick. Consequently the equity returns from the decade of 2009 to 2019 are 4% cagr << even less than an FD. 10 years is blink of an eye in the market. The money will just keep going up and down notionally but not go anywhere conclusively. If you take a 20-30 year view, then equity beats FD otherwise FD beats equity on a 10 year horizon.
2 years? not worth the risk. It could go further down, or if it goes up a bit, the STCG tax will cap your gains below FD rate anyway.
Liberalization in those times meant allowing Western capital and companies to flood India. At that time we had just achieved freedom from these colonial Allied powers. Again allowing them to come back in to invest their colonial wealth in the name of liberalization would be like inviting them to re-colonize us.Her economic incompetency always eclipsed her aggressive foreign and defence policies. Caused more loss than gains.
Only significant thing which gave India long term gains she did was dissolving Pakistan.
No, I don't beat you by a mile. You keep on shitting same shit over & over without any justification.
There is absolutely at least no logical justification to oppose liberalisation and justifying socialism. You can't do anything except name calling because your economic concept is useless and proven piece of shit around world.