The guest post below has been written by Sandeep Dixit of Nestegg Capital. Sandeep has many years of experience in the Indian Capital Markets.He was closely involved with managing Alliance Bernstein’s India Growth Fund and was the Head of Research for Deutsche Equities.
[gview file=”https://alphaideas.in/wp-content/uploads/2015/06/RM-No-Achhe-Din-for-banks.pdf”]
4 replies on “No “Ache Din” for banks yet”
Very good read – but aside from the solutions of recapitalizations and splitting up of assets into good bank/bad bank, why is there is little mention of coming out with a proper bankruptcy code? Not to mention that recapitalization just means throwing good money after bad. Already troubled institutions probably need handholding by the RBI (merger perhaps?).
The rot seems too deep and state banks are probably to blame. Unfortunately taxpayer money will probably continue to be supplied to the banks, the RBI will do its best to engineer inflation at the cost of the people, and the extend and pretend by banks and government will continue. It is indeed a sad state of affairs. Hell, if the government doesn’t have the wherewithal to shut down the banks, the least they can do is to let (or force) the banks shut down the offenders!
@alphaIdeas,
glad you are back n posting. hope things are well @ ur end. wish you well. missed reading daily reads for almost a fortnight.
regards,
blue
Tx for your kind words and warm wishes
Hi Gaurav,
The SARFAESI Act gives banks the right to force promoters to out of the company. I don’t think we need a new law. We need effective implementation. We need some headline examples of high & mighty losing their assets.
The Courts & political pressures have weakened banks’ resolve to force promoters to exit. That needs to be fixed. Until then, our (taxpayers) money will go down the drain.