Bank Collapse In India! $2 Trillion Dollar Debt
India’s banking collapse began as far back as 2007 and 2008, before the global financial crisis and stock market crash, when a lot of investments were made. Those investments created a lot of bad loans that needed to be cleaned up in order to spur lending.
Banks are the most significant source of funding for Indian companies. The banks have stopped lending because their balance sheets were getting clogged with non-performing assets. India’s banking system has lost $24.8 billion dollar due to non-performing loans of 416 defaulters being written off, CNN-News18 reported last month. In the last three years alone, the Indian banking system has lost more than 26 billion Dollars on accounts of non-performing loans of 416 defaulters. Subsequently, any deterioration of banking has a deep and durable shock on the economy and will cause economic collapse sooner or later in India.
The recent NPA crisis has been followed by a sharp downturn in investment expansion and a compelling economic slowdown. Among the many causes that the crisis has been attributed to, a critical one is the influence of government-owned banks in the system. In India, government-owned banks, or public sector banks PSBs, account for seventy percent of bank loans. All along the late banking collapse, they were hit worse than private and foreign banks and accounted for ninety percent of the total NPAs. The PSBs had to make rations for these bad loans, Contributing to the corrosion of their capital. The government had to re-capitalize the banks. The aggregate amount of capital infused by the government in PSBs since 2008–09 is US$42 billion. Roughly two percent of India’s total GDP. For a government that is faithfull to fiscal strengthening, this is a severe budgetary burden. There are grave institutional concerns with these PSBs, which succeeded in being in 1969 as a result of bank nationalization.
India is in a deep crisis, and these kinds of news are slowly spread as eventually, bank accounts will be frozen and the next economic collapse will finally arrive! The govt is fudging all numbers, and the RBI has bailed them out for the moment. But hiding facts won't improve the economy...so the last step will be confiscating deposits!!
With an economic collapse building, the Reserve Bank of India is struggling to reassure the public that the banking sector isn't imploding. It is coming to a bank near you soon. The Punjab Maharashtra Co-operative Bank, PMC, in India, has been busted cooking the books and giving false statements on non-preforming loans of Mumbai-based real estate developer Housing Development & Infrastructure Ltd. As Reuters reports, PMC disguised the bad loans using 21,000 bogus accounts, which has freaked out depositors, investors, and government officials. Suits them right to entrust the banks. Instead of abiding by the tried and actual traditional precious metals. You should have kept all your Rupees in silver and gold. You can never trust A BANK OR YOUR GOVERNMENT! The crisis development at PMC Bank is but the tip of the iceberg of more substantial, pending issues in India’s banking sector.
Your money in the bank coffers is not really your money; it belongs to the bank and ultimately to the state. Capital controls... Bail-in's.... 'And it's all gone by a huge stock market crash.’ This can't happen if you take ownership of either Gold or silver or even bitcoin. This is the lesson to be learned here. Also, history shows us that India is the testbed for anything nasty The Power That Be have planned for us 99% It happens first in India, lessons are learned, the people studied. Then it is rolled out in the west.
The recent NPA crisis has been followed by a sharp downturn in investment expansion and a compelling economic slowdown. Among the many causes that the crisis has been attributed to, a critical one is the influence of government-owned banks in the system. In India, government-owned banks, or public sector banks PSBs, account for seventy percent of bank loans. All along the late banking collapse, they were hit worse than private and foreign banks and accounted for ninety percent of the total NPAs. The PSBs had to make rations for these bad loans, Contributing to the corrosion of their capital. The government had to re-capitalize the banks. The aggregate amount of capital infused by the government in PSBs since 2008–09 is US$42 billion. Roughly two percent of India’s total GDP. For a government that is faithfull to fiscal strengthening, this is a severe budgetary burden. There are grave institutional concerns with these PSBs, which succeeded in being in 1969 as a result of bank nationalization.
India is in a deep crisis, and these kinds of news are slowly spread as eventually, bank accounts will be frozen and the next economic collapse will finally arrive! The govt is fudging all numbers, and the RBI has bailed them out for the moment. But hiding facts won't improve the economy...so the last step will be confiscating deposits!!
With an economic collapse building, the Reserve Bank of India is struggling to reassure the public that the banking sector isn't imploding. It is coming to a bank near you soon. The Punjab Maharashtra Co-operative Bank, PMC, in India, has been busted cooking the books and giving false statements on non-preforming loans of Mumbai-based real estate developer Housing Development & Infrastructure Ltd. As Reuters reports, PMC disguised the bad loans using 21,000 bogus accounts, which has freaked out depositors, investors, and government officials. Suits them right to entrust the banks. Instead of abiding by the tried and actual traditional precious metals. You should have kept all your Rupees in silver and gold. You can never trust A BANK OR YOUR GOVERNMENT! The crisis development at PMC Bank is but the tip of the iceberg of more substantial, pending issues in India’s banking sector.
Your money in the bank coffers is not really your money; it belongs to the bank and ultimately to the state. Capital controls... Bail-in's.... 'And it's all gone by a huge stock market crash.’ This can't happen if you take ownership of either Gold or silver or even bitcoin. This is the lesson to be learned here. Also, history shows us that India is the testbed for anything nasty The Power That Be have planned for us 99% It happens first in India, lessons are learned, the people studied. Then it is rolled out in the west.
The Job of the RBI is NOT to maintain price stability or peg the rupee or print the INR.INR is printed all over the world from BKK to Lagos.With 400 Billion USD anyone can peg the INR to anywhere they want.The Purpose of the RBI is to protect the Robbers and Barons of India, id.,est., Banias,Brahmins etc.,to enable them to loot the Indian People,on the pretext of new business ventures,to keep the wheels of commerce moving,and thus,ensure,a pittance of jobs and excess production capacities.
Furthermore,there is no agri policy in India – except to ensure the disaster of over production,to depress agri farm gate prices, which is to ensure that the input costs for the Robbers and Barons of India and the food costs of the middle classes,are as low as possible – at the cost of the misery,pain and blood of millions of farmers.
Since the Robbers and Barons of India,being bania and brahmin weasels and vermin, are INHERENTLY incompetent,they need various subsidies and protection in form of import duties and tax sops – and the biggest sop is the Indian Agri Policy, which is designed to kill farmers and REDUCE the costs of the Banias.
How does the RBI protect the Robbers and Barons.The Indian Banking system does not do any commercial banking.It is a VC enterprise,which lends to ultra-high risk activities ,id.est FRAUD.
Let us say Mr A starts a business B and then takes a bank loan from a Private Bank Say HDFC bank – and then steals the money.Then what ? Then The RBI gives him the key to the door of a lower tier Private Bank,like Axis Bank – say,for working capital funding (after sinking the term loan – by diversion and over- invoicing).This money is also eaten up by A.
Then A goes to a 2nd tier state owned bank – but by now his name is flashed ONLY In the banking system.So he floats a new trading cum manufacturing company called D,and starts the entire process again.Within 1 year,he digests this money also. Then he targets the STCIL,MMMTC and MSTC and PEC to get merchant financing for transactions, as a trader or an associate and he rips them off also.
Now,the beauty is that all these Banks and other agencies,have more than Rs 900000 crores of such OUTRIGHT FRAUDS and Mr A has positioned him at a scale and a type of fraud which is far less than the rest and so,Mr A is NOT a Priority for the bank or the legal system.Now Mr A has to be creative.So he taps his trusted suppliers and other participants in the supply and value chain of Business B and D, to raise working capital loans from new banks, based on bogus financial statements – and now Mr A has a cartel – of partners in crime.So Mr A is a seed VC, who has tried and tested the banking system, and placed his confidants in a position to loot money on his behalf – who will follow the same pattern as that of Mr A
Then Mr A moves to the last tier of the Indian Banks,which is the Cooperative banks and Societies – a perpetual black hole.Here he has to just share the loot with the bank board and the local neta.The bank will be bailed out by the state – else,there will be civil war.
The genius of the RBI is that the Indian Public does not know the names of the companies, shareholders and directors of these FRAUDULENT BORROWERS.The RBI says that it is a State Secret.The purpose is to ensure that these Robbers and Barons,can keep the Ponzi scheme working,y ripping off as many institutions,suppliers and public as possible.
Now Mr A has invested the stolen 1 Billion USD, in land or gold or stocks and in 10 years, it is worth say USD 3-5 billion, and he now wants to “get back in the gane”.So what does he do ? He dials the banker and asks for a CDR/OTS,and the banker thinks that an angel has descended from the pole star.The entire bank staff stands in line with garlands and does bharatnatyam when Mt A descends in his Chariot.
Mr A has the interest halved or waived,has the principal loan converted into equity and then uses his OWN 3 Billion USD to route it through some FII or entrepreneur (say USD 100 million) to be a partner in the CDR.He also secures some tax concessions for the old plant.
People say ,Y did he wait for 10 years ? Simple – in 10 years, the demand of the products outstripped supply and the Indian economy and banking was busted and vulnerable.
Next day,it is the top wired news across the world and a case study, for the WB and IMF and Harvard.
But what of Company D ? Mr A says that he has redeemed his sins.So he lets the company be taken over by ARCIL, and uses his links with Netas to force some PSU to PURCHASE THE ASSETS OF CONPANY D, at the WDV and pay off the loans ! WONDERBAR !
Now Mr A will get a Bharat Ratna and be the talk of the Robber Community for decades.
But Mr A has to get back his 100 million USD in the CDR – and so,within a year he does an IPO,and his so called partner, exists his 100 Million at 150 Million,and pays 145 million in cash back to A,and Mr A sells of 5% of the entire equity of his company B,and then,he is off to a Greek Island with the female beaus of Adnan Orkut
All the above,is a part of the Indian GDP.
This is the Indian Economic story and the RBI – which is based on lies,cheating and fraud – and which was blown wide apart by COVID.