Last time, I wrote about Sindicate bank
http://indiatoday.intoday.in/story/syndicate-bank-scam-cbi-pawan-bansal/1/376615.html
Again, same thing happened, Axis tried to hide some details in a clandestine manner and market punished it for this.
But about the rest, most of the Indian banks are bankcrupt and the deposits of taxpayers are at risk. I have written extensively about this NPA fraud. Recent comments of Transport Secretary, Mr. Chibber proved the same
1. Most of the Indian infra companies work on negative equity
2. All the credit have been sapped out by the infra/real estate companies and little is left for manufacturing. This pushes up the interest rates.
I found a question on UPSC mains examination on why Indian could not have a booming secondary economy and why tertiary zoomed ahead.
One of the reason was the credit squeeze, most of the banking credit was siphoned off by nexus of politicians and businessman and little was left for capital intensive secondary economy.
Wait and Watch ! - Major bankruptcies will emerge in the following sectors
1. Infra
2. Real Estate
3. Banking
It is prudent for retail investors to stay away from such companies even on stock market. Stock market has already punished the like of JP, Unitech etc for multiple reasons and debt overhang is one of these.
http://indiatoday.intoday.in/story/syndicate-bank-scam-cbi-pawan-bansal/1/376615.html
Again, same thing happened, Axis tried to hide some details in a clandestine manner and market punished it for this.
But about the rest, most of the Indian banks are bankcrupt and the deposits of taxpayers are at risk. I have written extensively about this NPA fraud. Recent comments of Transport Secretary, Mr. Chibber proved the same
1. Most of the Indian infra companies work on negative equity
2. All the credit have been sapped out by the infra/real estate companies and little is left for manufacturing. This pushes up the interest rates.
I found a question on UPSC mains examination on why Indian could not have a booming secondary economy and why tertiary zoomed ahead.
One of the reason was the credit squeeze, most of the banking credit was siphoned off by nexus of politicians and businessman and little was left for capital intensive secondary economy.
Wait and Watch ! - Major bankruptcies will emerge in the following sectors
1. Infra
2. Real Estate
3. Banking
It is prudent for retail investors to stay away from such companies even on stock market. Stock market has already punished the like of JP, Unitech etc for multiple reasons and debt overhang is one of these.
