I had blogged earlier about the implications of Chidu taking charge of the Finance Ministry.One implication was the outlook turning negative for PSU banks.
So even though the markets are rallying, PSU bank stocks are taking it on the chin in the last one month. (See Table Below):
| Symbol | Fall |
| CANBK | -15.38% |
| UNIONBANK | -14.38% |
| BANKINDIA | -13.99% |
| PNB | -13.41% |
| IOB | -13.01% |
| ANDHRABANK | -12.84% |
| CENTRALBK | -11.37% |
| INDIANB | -10.69% |
| SBIN | -10.31% |
| UCOBANK | -10.14% |
| UNITEDBNK | -10.03% |
| ALBK | -9.61% |
In the meantime, Gopal Kanda also became friendly with a powerful IAS officer, who took him along to Gurgaon when he was posted there in 1997-98. It was he who arranged the first tranche of cash (Rs 25 lakh) and a list of few properties that were disputed. Kanda opened an office in Sector 14, Gurgaon, where he dabbled in a readymade garments business as well as real estate. The garment business failed but realty turned out to be Kanda’s calling in life and he never looked back since. Kanda acted as the front man for the IAS officer. His modus operandi was to buy disputed land for a low price, settle the dispute with the help of the IAS officer, and then sell the property for a premium.
“The IAS officer was not the only one. When Kanda came to Gurgaon, the Bansi Lal government was in power and his relative Ajit Singh was the local tehsildar. Kanda became close to him. You cannot dabble in such business without support from powerful people. Kanda worked with him for close to two years,” says former Haryana deputy speaker and INLD leader Gopi Chand Gehlot.
IN 1999, when Om Prakash Chautala became the chief minister, fortune smiled on Kanda. He rose to dizzying heights during this period under the alleged protection and tutelage of Abhay Chautala. The senior Chautala’s tenure also coincided with the property boom in Gurgaon. The IT sector and the call centre industry came to Gurgaon at around the same time.
Kanda made a killing in influencing the change of land use, from agriculture to residential and commercial, which was the single biggest reason behind the astronomical growth in the wealth of politicians and landholders. For example, land that was bought for Rs 25 lakh per acre in 2002 became worth more than Rs 5 crore in just three years. Till 2005, it was alleged that Kanda was Chautalas’ front man, who took care of almost every big deal that happened in the satellite city.
–From the Tehelka
Some stuff I am reading today morning:
Mangalore airport still unsafe (Mint)
New rules for India’s borrowers (WSJ)
How you could be stuck in your mutual fund forever (FirstPost)
Introducing Screener.in (DalalStreet)
Hewlett Packard Truth Serum Call (JeffMatthews)
Time to friend Facebook (AswathDamodaran)
Stuff Warren Buffett doesn’t do (ClimateerInvesting)