Tag: banking and Finance.

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Interpretation Of Banking Norms


Banking and Finance is a heavy subject. Science and most recently computers, information technology have been in popular circulation , as subjects of great interest . Apart ,from being  interesting , they are lucrative . The software hype has created billionaires in a short time. No wonder ,the craze for such courses is growing in supersonic speed.

Banking  may seem old, but yet it is new. It has been in existence from time immemorial. It gets transformed  and takes up a modern perspective ,according to the period. Its norms are altered, modified , and revoked, freshly added in respect to changing eras.

This measured ramifications  render the banking subject almost new. An absolute mastery of the subject is a near impossibility.The reformations are carried out ,after thorough analysis.Committees are set up to  discern ample possibilities  and vivid scope  that are available to promulgate vast interactive transcriptions.

The committee’s are  formed ,with great care and with greater expense.It takes a minimum of three years  to present its report. The conclusions are not accepted in full form. The clauses ,which get the approval of the majority of the bankers are assimilated . The balance, is shoved into the oblivion. The regulations concerning the corporates, are widely acclaimed. The strictures that deal with credit cards system also find a cordial welcome. But , that which deals with the employees , insinuates a confusion ,so that the specific recommendations centering on these issues get buried.

The interpretation of the norms, as put forth by the  committee , differs from bank to bank. This contradictory readings jeopardise the customer. The Reserve Bank Of  India , set up the Narasimhan Committee to give a face lit to Banking concepts. Its reports , present a rare insight on the NPA’s .  Accordingly, the non performing assets ,should not find a place in the balance sheets of the banks. Banks , practised a, phenomenon,which apparently predicted a distinct distaste to their integrity. They completely cooked up accounting details. They showed in their balance sheets , that they have wiped off the non performers, by collecting their dues., which in  reality ,  was not performed. Narasimhan Committee , firmly ordered that this insincere, fictitious proposition should not be carried out. The window dressing has led to various anomalies that extend a vast deformity  and mandatory difficulties.Public sector banks in India , have come with their own definitions, which are sometimes ridiculous, but mostly very risky and erroneous.The gross default has led to  a disaster unpredictable.

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The State Bank Of India-Vague Competency.


My alignment to the stateliest bank is so thick and firmly bound. It is something of a  ranting.,as . I indulge  in decrying the demerits of the erstwhile Imperial bank.The affliction has percolated so profoundly, that however much , I try to take this issue out of mind, it keeps on lurking , and disallows me to lie quiet.

The thought may seem to be a little odd, but I perpetuate it to safeguard potential customers to be doubly careful in their requisition for loan, and extremely cautious in tending col laterals. This Bank is a dangerous  institution , when it comes  to  mortgages.It is manned by officials ,who are inhuman, inconsiderate, and pose a falsification ,as though they are busy all through the year. A casual look at the interiors and close view of the premises during the office hours , give a most different portrayal. There is a rush in the lifts, denoting heavy traffic, with office sub staff , running up and down with beverages, and snacks. The staff loiter around , taking a few papers in their hand , pretending to be terribly busy. The higher ups are engaged in telephonic conversations , as though they are sealing the fate of the nation.All these happen in the background of gentle banter.

Their actual work amongst these pretensions look very incompetent , insufficient and not well informed. Their appraisal is filled with inadequate listings, distorted factual, Their response  is bombastic ,but bear no meaning,. Their reaction is pompous but unrelated to reality. Their conclusion is imperious , but totally detached from truth. Their averments are exclusive but exclude veracity. Their action is tardy, but  holds the neck tight. Their speech is kind , but  brings no help. They say they  go by rule, but there is no legality in their moves. They insist on codes , but they follow no such conduct. Their competency is vague, short of standard valuation.

The substandard evaluation of State bank Of India .in most cases , have driven their customers to unexpected extremes and unwanted hardships.

The greater be the  stature ,you   experiences more pain if  you tumble. If a cat slips , it gets up and leaps ahead without any injury. Imagine the plight of the elephant. Its fall is unbelievable and the injury has to be attended to with great care. So State bank of India has to reform its ways and reprimand its officials, to save itself from the plunge.

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The State Bank Of India – Connived Transparency.


Transparency in bank transactions is an high valued ethic. Any deal, whatsoever , should be governed by prescribed norms. It should undergo a thorough scrutiny . It must have a framed disclosure.It should lead to no digressions,  contain no ill conceived schemes,  consist no antithetical disbursement,  hold no prejudice ,   endeavour no underhand dealings and carry no unsolicited interpretations.

Such a constitution is an  existential  curiosity. A news clipping came out with a statistical data, that Banks in New zealand score high in the tranparent  category. They are resounding in integrity, and successful in emulating affability. The ir score is 14.

India ranks the lowest , with the score of 2. My bank , the largest in Asia , The State Bank of India,will be conferred a big zero.The attaining of Zero is a confirmed prologue,as the real value  of the bank vanishes  when it comes to the argument of transparency.

Transparency is an effective tool in tackling financial exclusion.Full disclosure identifies ,who the banks are reaching, and who are excluded.It also throws light on how the savings and resources are being invested,It provides opportunity to understand market trends and refine products  and services to serve local markets.It enables to  compare the performance  in a verifiable way, so as to  reward top performers and penalise those who fall short. 

Transparency , obviously ,is the basis of greater openness,and shared information that can facilitate,working partnership between banks and alternative lenders.Disclosures ,should include declined applications,pattern of usage, account dormancy,and should have a consistent presentation.Rendition of truth, compilation of facts should take the prerogative in the transparent disclosures.  A small business should be allotted the same  treatment as that of a large one. size  should not take the upper hand. The requirement, the necessity, the prospect of repayment should have a controlling effect. But , State bank Of India , has its own principles , stuck all through the decades,. They have  never changed, never been  modified , never altered . State bank  puts to embarrassment the real,genuine entity, but  worships the treacherous , insincere leviathans..

Its serpentine attitude  is vicious. Its foxiness is scandalous. Its bearish impudence is preposterous. Its cattish conceit is ravenous. Its elephantine resemblance is incredulous.

The conniving bureaucracy prevailing in State Bank of India , impose a demeaning, derogatory,  discomfiture.

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State Bank Of India -High And Dry


The influence of State bank Of India , though for negative reasons, is so deep , that I am finding it difficult to wean away from it.

Royalty brings with it grandeur. Massive enormity forces us to give respect. Extensive reach enables us to admire. The core activities make us realise the vitality. The powerful interaction leads us to ease. The flow of wealth renders us awestruck. This is the normal consequence of anything true and great.

State bank Of India , to many like me , presents a not too  affable experience and an infuriating reminiscence. The attitude towards the constituents is animosity. The sanction of loan is subjected to unusual tardiness. The facilities are split, broken , and delivered in fragments. The assurance from the customer is verified, , crosschecked , scrutinised umpteen times. But their confirmation , is a dangling dilemma, concurring to the notifications.They take much, but disburse little. While processing the loan,they  pose to perform undue  caution, enacting lot of fuss, impelling extra stress .

Gaining entry into the portals . is a strain irrespective of merit and genuinity. I took pride ,when I became a constituent of State bank Of India , twenty years back. But , I regretted  this step  , after a few months of my dealings. The  accessibility was so difficult. Every small references has to be sent to the Local head office. The Branch , the Regional Offices are a dummy existence. A wholesome expense is met in maintaining such inert offices which are under spineless officials, who  find safe hideout in the omnipotent Local Head office.

The General Managers ,  are tied up  with issues , that they are hard pressed for time. The Presidents and Prime Ministers, of nations, meet people, hear their grievance , in the midst of heavy schedule. The high up officials  of this bank , have no free time to  lift their head to acknowledge a person. Such is their busy work out.  It seems that tough programmes enforced to take major policy decisions  make them unapproachable.These pretensions are amusing

 In places , of worship, in venues of  exhibitions , in areas of public meetings, the entry is difficult but the exit will be easy . But, in State Bank, getting into it is tedious. Getting out is alarmingly painful . The strength , the valour, the tolerance, the  money , all get sucked up . The customer is a skeleton of his self , both physically and in spirit.

  Gandhiji  has said, that for any business to thrive the customer is important.It is the other way round in State bank Of India.

 

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State Bank Of India’s Pathology


 

My nineteen years interaction with The State Bank Of India , prompts me to do a research on its abnormal behaviour. The structural pattern of the  bank , may look extremely  solid  and very strong, but in actuality is full of  eccentric porous  and very weak. The functional procedures ,may appear grand and highly disciplined, but in reality is flippant and extravagantly  chaotic.

Pathology is a medical speciality.It consists of anatomical ,clinical, forensic, veterinary, and plant studies.The pathologists are physicians ,who diagnose and characterize disease in living patients by examining biopsies or body fluids.

State Bank’s pathology  is a financial speciality. It considers the credit worthiness, background ,requirement, potentiality .  capacity of the creditor. The appraisal officer , conducts a thorough survey of the intricate details and ratifies the proposal.This is the original worksheet and a normal spread out of any financial institution  But  State Bank has its own formulas. Anomalies and  infringements creep in. The financial pathology undergoes a change. The identities reveal a catch. There is no thumb rule, in extending loan.The extension is lengthened  to high flung industrialist. The limit is curtailed to humble upcoming entrepreneur. The imposition of regulations vary according to specific norms ,formatted by the Committee.  No official takes up the responsibility for the alarming discrepancies.  They place  the claim  on the committee.This proves to be a peculiar significance.

What is a committee? It is basically a group of people officially delegated to perform a function , such as investigating,considering, reporting  or acting on a matter.The committee has on board ,human beings  with life and blood. It does not comprise of demigods, who descend from the other world,who are unaware of the idiosyncrasies of the commercial and industrial genre.Unfortunately , the Committee behaves in a quixotic manner , completely irrelevant to the day to day progressions. It also succumbs to pressure and acts  in a perplexing autocratic deviation

.Medical pathology facilitates treatment , by making a serious attempt to acquire knowledge  related to human disease.

State Bank Of India’s  pathology obstructs  prosperity  by creating a series of harassment  to diffuse  stoicism  leading  to cutomer’s  extinction.

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State Bank Of India’s Lexicon


Compiling  a wordbook is a tremendous task. A lexicon consists of the vocabulary of a particular language, persons,field, social class,etc. State bank Of India , has formatted a beautiful glossary of terms pregnant with meanings , connotations and latent inferences , which could be understood only by its officers. The interpretation of the terms are entirely  mind blowing . Never would have anybody , with the reasonable level of education, and a rational degree  of comprehension , accept the indications of the reputed bank’s presentation, nor would have thought or more so dreamt of the definitions of certain common phrases and terminologies.

The experience , I  am having with this presitigious bank , would make anyone spellbound and speechless. Such are the whims and fancies of the officials. A two and half a year back , I got a statement from the branch , of which I am a constituent, that there is no due in my  company’s loan account. This , unobtrusively , I procured to finalise my company’ s balance sheet. Well, the job was done .  The filing of returns and other routione check ups were accomplished by my auditors.So far , so fine.

The gigantic Bank , the biggest in Asia, came with a powerful thunderbolt . almost as massive as its size, calling me to pay further amount, a lumpsum , saying I have not repaid to the ” Full satisfaction ” of the Bank.The penetration has created a dent in my complacence. I fumed ,I shook in  anger.What is their intention?What do they want from me?More money, more money. more money.Where to get? How to get?Why should I pay?. My ramifications  have fallen into deaf ears.This is a typical illustration of their inventory of words. Many more  are there to prove my point, but I restrain myself from exhibiting this one vital concordance.

The lexicon of State Bank Of India,is a worthy contribution to society in general and to the financial institutions in particular. The dictionary is an asset to the world.It should find a place in every library .

Kudos to State Bank Of India .

Long Live the Officials.

May their tribe increase.

God be with them

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Latitude And Longitude Of Debt.


Earth is essentially a sphere. It is a habitat of mortal life.

The geographical coordinates  are called latitude and longitude.

This is an indulgence unfamiliar, leading to a comparative study of earth and debt. The  imaginary lines , around the planet Earth, reveal the intricacies of the earth’s formation  and location of a place. The lines of the financial are cynically  dubbed as latitudes and longitudes, in this post  throw extra  focus on the intrinsic value and the status of the constituent.

Debt  is an amount owed to a person or organization. It is an obligation to pay money under an implied agreement.

Latitude,  geographically is measured from the equator . It measures the angular distance between the equator and points North and South of it on the surface of the earth. It is attributed with positive values going North and negative values going South.

The financial latitide  ,is measured from the debt. At present , the positive results are apportioned for the  elite and snobbish.. The negative points are set apart for the sincere and modest .

Geographical longitudes  are meridians , which run perpendicular to lines of latitude,and all pass through both poles.A degree of longitude varies in size.It is approxomately 69 miles at  the equator. At 45 degrees it is 45 miles .It is zero near the poles.The degree and size of longitude  are in direct ratio to each other.

Over to the financial debt as of now, the quantum and power are in direct ratio to each other. The richest is the most eligible suitor. He can stretch his facilities to  any extent. His money power facilitates him to dictate terms, negotiate rates, dictate tenure , overide policies and overstep procedures.

As degrees of latitudes and longitudes can be further subdivided into minutes and  seconds geographically , the financial lines  can be classified as wilful and genuine defaulters.The notations geographically allow us to locate places quite precisely. The coordinates in the debt ratio help us to identify the regular and the irregular, the fraud and the sincere, the exaggerated and the exact , the pretension and transparent.

This attempt may appear slightly out of range and  an unrelated study. Getting deep into it we  can draw many interesting analogies , fine comparisons and similar surveys.

Geography is a science ,which deals with description, distribution and interaction of the diverse physical, biological,and culturl features of the earth’s surface. Financial  debt is a discipline , which concentrates on variables of  funds, risk and fair valuation.

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Transfer of Debts.


Banking regulations did not allow for trading in debt. This is the Gujarat High court  judgement.

Banks cannot  trade transfer or purchase a pool of non performing asset or bad debt.Thus securitisation loses its meaning. Debt cannot be transferred without the borrower  being  party of the transaction.The court has researched in depth and found out that under section 6 trading in debt is not within the purview of banking company.  The impact is wholesome . The banks cannot ,hereafter simply shed their debt box as dry leaves fall from the tree. They have to carry the bag with them.

Is a loan item of the borrower an asset of a bank or debt of a bank?This has to be studied carefully. From a layman’s point of view the loan of a borrower is a debt not an asset. But the bank’s term the faltering companies as Non performing asset. The situation is little peculiar . How can the banks address a loan as an asset?. So far we have blindly followed the bank’s regulations, The judgement of the Gujarat High court is an eye opener. This will have a retrospective effect too.

Selling a debt to Asset Reconstruction Company will also have a similar reference . The ARCIL is a company formemed by different banks, Its regulations and rules ,as found in their Memorandum ,will also definitely reflect the distinctions as found in Bank’s strictures.

The Supreme court can set aside the judgement, but the ruling of the Gujarat High court is an evolution of a thorough analysis of the laws and formulas that govern the financial institutions.

If the judgement is upheld by the Supreme Court of India, then the entire scenario of Non performing Assets under the DRT, under Securitisation (SARFESI ACT)  wil produce a remarkable challenge to the banks autocratic behaviour. It will a stimulate the depressed industrial dogma , and rejuvenate the dishevelled manufacturing premium .

Times change.  Rules get modified. Profiles undergo moderation. Perceptions get altered. But  true Judgements provide a certainity and a memorable requisite and a required respite.

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Graceful Gravity.


The Reserve Bank of India, had time and again, announced One Time Settlements,to borrowers .

Non performing assets create  panic to the banks.

The increase in the NPA’s,  is due to the high interest rate, high power tariff, and high raw material costs.

Banks also contributed to the industrial unviability, by not sanctioning  appropriate limits at the most propitious period.

 Government policies are  always favourable to farmers, as it has insisted the banks to waive of loans advanced to agriculturists.

Failures in the industrial sector should be analysed in three vital fronts.

1. Lack of proficiency at the managerial level.

2. Financial Institutions role in helping industries.

3.Recession unexpected.

If the first factor is pronounced , then the promoter should have to face the brunt.

When the second and third  takes the foreliner , the entrepreneur is not to be blamed, as he is caught between the jaws of a  wild crocodile.

Arbitrations  are conductd for amicable  solutions.

The Debt recovery tribunal   is a body fully structured to give a competitive hearing to the defaulter, and mediate between the complainant and the customer.

The one time settlement announced by The Reserve bank Of India, is another equation to find a graceful settlement.

So far,,so good.

Let us take up the case of MR X.who is a first generation entrepreneur,.

His company became a NPA.

He accepted the settlement,  put forth  by the bank,according to RBI OTS.

He started his schedule,and  diligently paid  the instalments.

He could not make the last payment within the time frame stipulated by the Bank.

He accomplished his deal after 3 months.

A delay of three months  , by X., who had remitted the majority  of the amount, was deemed by the Officers as  a serious and  a deadly aberration.

They accepted his payment,but did not release his securities, as ,the collateral, he had given at the time of availing the loan turned out to be attractive, and of high value.

Let me come out withe the Bank’s identity.

The State Bank Of India ,is now in  possession of the settlement amount, the securities and the interest accruals.

Shakespeare’s Shylock demanded a pound of flesh from Portia.

It is a milder comparison , I feel.

it would be a disgrace to Shylock ,if I try to draw parallels between him and the Officers .or rather the committee. as they call it.

Representations, pleas, and besechings  of X  have gone  unnoticed.

He  , after paying the OTS ,with a delay of  just 3 months, is now bersek. 

  The bank is sitting pretty on this issue,, signalling a  wily sneer and cheeky contempt at X .

They mercilessly deputed The Debt recovery tribunal officer to attach the property, on the eve of Deepavalli.

It was a ruthless, cruel ,condemmable  implication

Are they really human?

Do they possess a heart?

What do they expect?

Mr X.is already battered by the loss his company made, tossed by the interest he has to pay, , has sold his unencumbered assets to meet the OTS,.and set sail abroad to take up an assignment to keep him going.

He has  now only his shirt on .

The bank  officials can rip him off . and lay him bare chested by their  offensive guiles.and  vehement syntax..

In spite of  being in such a sordid ambience.Mr X  wishes  in good spirit. 

May  the officers  tribe increase.!

May the committee  flourish!

May the Bank prosper!.

Mr X, I submit my anthems to you  with folded hands.

God be with you.