Singh bling Posted March 8, 2020 Author Share Posted March 8, 2020 On 3/6/2020 at 4:04 PM, velu said: any other bank ? Are Nirav modi PNB bank, PMC and Yes bank not enough in span of 2-3 years Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 17 minutes ago, Straight Drive said: Well, I differ on this. Personally I got rid of my position in Yes Bank when there was a hint of cooked loan books. The CMP was 400 then. Even most other investors and Mutual Funds have reacted negatively over a period of last 1 or 2 years and bought the CMP down at 16 Rs as of yesterday. Market is never emotional and it shows in this case as well. I don't mind bail-outs but in this case I am against it because it's a intentional scam or fraud. bank bailouts saves the bank , employees , their customers and their business .. not the promotors Bailouts won’t save equity holders which is also right Link to comment Share on other sites More sharing options...
Singh bling Posted March 8, 2020 Author Share Posted March 8, 2020 3 hours ago, Straight Drive said: The while banking sector is messed up with NPA and loans given for return benefits. All parties are using public money to recapitalize the scam hit banks. RBI may be the governing body but they are under control of the parties who form the government. It's been that way since the times of Congress and continues even now. There is lot of conflict between RBI and government at times, but even t then RBI cannot take all decisions they want. I guess last year they recapitalized Corporation bank with 5000 crore? Why should public money be used to cover us scams and frauds. Agree with it. Yes banks loan book was 55k crores in 2014 which surges to 2.55 lakh crores in 2019. It is crystal clear that politicians from ruling party were involved in it o/w why RBI did not take notice of it and put stop on it. Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 2 minutes ago, Singh bling said: Are Nirav modi PNB bank, PMC and Yes bank not enough in span of 2-3 years PMC is a corporate bank .. PNB was scammed and unless you a dumb libtard ( I assume you are ) you know it was not scammed by bjp .. yes bank loans went bad because of the risky lending to corporates and again this is also a private bank and only a dumb liberal like you can think of reasons to blame bjp/Bhakt Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 17 minutes ago, Singh bling said: Agree with it. Yes banks loan book was 55k crores in 2014 which surges to 2.55 lakh crores in 2019. It is crystal clear that politicians from ruling party were involved in it o/w why RBI did not take notice of it and put stop on it. Yes bank had under-reported NPA few years back and it was somewhere around 4000 crores. Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 (edited) 27 minutes ago, velu said: bank bailouts saves the bank , employees , their customers and their business .. not the promotors Bailouts won’t save equity holders which is also right Why is tax payers money used to bail out a fraudulent company. The ones who will lose jobs will find it in some other bank as customers from Yes bank will obviously move to other Banks. The other Banks will recruit more people as their customer base increases due to the migration of customers. Will have to see how market will react to SBI stock post this decision. Edited March 8, 2020 by Straight Drive Link to comment Share on other sites More sharing options...
Singh bling Posted March 8, 2020 Author Share Posted March 8, 2020 18 minutes ago, velu said: PMC is a corporate bank .. PNB was scammed and unless you a dumb libtard ( I assume you are ) you know it was not scammed by bjp .. yes bank loans went bad because of the risky lending to corporates and again this is also a private bank and only a dumb liberal like you can think of reasons to blame bjp/Bhakt If you believe that a Government who is ruling from 6 years and under whose tenure loan book increased cannot be questioned then I have nothing to say.We all know that India has lot of regulations and without Political patronage you cannot bypass them. Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 36 minutes ago, Straight Drive said: Why is tax payers money used to bail out a fraudulent company. The ones who will lose jobs will find it in some other bank as customers from Yes bank will obviously move to other Banks. The other Banks will recruit more people as their customer base increases due to the migration of customers. Will have to see how market will react to SBI stock post this decision. you are missing the main point here .. RBI has the duty to protect the depositors and also need to stabilise the banking sector .. if yesbank fails , then whole banking sector will be get screwed up .. people will lose faith and everyone will withdraw money and keep it under their bed .. SBI is buying it a minimum value of 10rs , probably that will be the floor value Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 37 minutes ago, Singh bling said: If you believe that a Government who is ruling from 6 years and under whose tenure loan book increased cannot be questioned then I have nothing to say.We all know that India has lot of regulations and without Political patronage you cannot bypass them. government is not running day to day activities of the banks .. and in a growing economy , obviously loan book will keep increasing , banks have to lend to business and they make money in it , they cant give their money to RBI.. yesbank got into trouble because of its reckless lending and in trouble because of their loans to stressed companies like rcom , vodafone ,zee etc .. when il&fs got inoto trouble , libtards blamed that government and lic didnt do enough .. now when they want to save yesbank , they are blaming the government/rbi that its overdoing its work.. Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 6 minutes ago, velu said: you are missing the main point here .. RBI has the duty to protect the depositors and also need to stabilise the banking sector .. if yesbank fails , then whole banking sector will be get screwed up .. people will lose faith and everyone will withdraw money and keep it under their bed .. SBI is buying it a minimum value of 10rs , probably that will be the floor value SBI will obviously get it at low price given the bank they are buying is dying and needs some saviour. SBI will buy it at the price they want rather than what Yes Bank will want to sell their stake at. Tax payers will also lose faith. It's just not about the depositors. Tax payers also have their opinions. Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 10 minutes ago, Straight Drive said: SBI will obviously get it at low price given the bank they are buying is dying and needs some saviour. SBI will buy it at the price they want rather than what Yes Bank will want to sell their stake at. obviously 10 minutes ago, Straight Drive said: Tax payers will also lose faith. It's just not about the depositors. Tax payers also have their opinions. saying tax payers money is used is sort of misleading ( in many other cases as well ) .. percent of indians paying tax is quite less and amount of tax collected as income tax is also less .. even if we assume we are bailing out the failing companies , it mostly comes from the corporate and indirect tax collections .. when comes to banks , they need to lend .. they cant keep their cash idle .. when they lend there will be lot of defaults as well .. banks lending rates are higher than their deposit and repo rates .. this will take care of the bad loans Link to comment Share on other sites More sharing options...
beetle Posted March 8, 2020 Share Posted March 8, 2020 Yes Bank scam: Rana Kapoor bought Priyanka Gandhi's painting for Rs 2 crore https://timesofindia.indiatimes.com/ speedheat and velu 2 Link to comment Share on other sites More sharing options...
sergio04 Posted March 8, 2020 Share Posted March 8, 2020 adi B 1 Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 1 hour ago, velu said: obviously saying tax payers money is used is sort of misleading ( in many other cases as well ) .. percent of indians paying tax is quite less and amount of tax collected as income tax is also less .. even if we assume we are bailing out the failing companies , it mostly comes from the corporate and indirect tax collections .. when comes to banks , they need to lend .. they cant keep their cash idle .. when they lend there will be lot of defaults as well .. banks lending rates are higher than their deposit and repo rates .. this will take care of the bad loans The income tax isn't the only tax that people pay. If taxes are going into bailing out the several companies that are due to intentional fraud, then where is the money for development of the nation. We still have lot to improve on infrastructure, baisc amenities etc. Why to create a shortfall in development or delay it by using the money in covering up fraudulent companies. Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 41 minutes ago, Straight Drive said: The income tax isn't the only tax that people pay. If taxes are going into bailing out the several companies that are due to intentional fraud, then where is the money for development of the nation. We still have lot to improve on infrastructure, baisc amenities etc. Why to create a shortfall in development or delay it by using the money in covering up fraudulent companies. As I said earlier saving a bank Is different from saving a company .. if yes bank failed ( still they have net +ve ) , it will create a big panic .. I am 200% sure you yourself will withdraw your money from other banks .. this will have a far bigger cascading effect .. if the company has a value and infrastructure there is a good value to be made by bailing out .. anyway here it’s more of a takeover than bail out .. randomGuy 1 Link to comment Share on other sites More sharing options...
randomGuy Posted March 8, 2020 Share Posted March 8, 2020 11 minutes ago, velu said: As I said earlier saving a bank Is different from saving a company .. if yes bank failed ( still they have net +ve ) , it will create a big panic .. I am 200% sure you yourself will withdraw your money from other banks .. this will have a far bigger cascading effect .. if the company has a value and infrastructure there is a good value to be made by bailing out .. anyway here it’s more of a takeover than bail out .. Any opinions on merger with SBI vs the current proposal Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 14 minutes ago, velu said: As I said earlier saving a bank Is different from saving a company .. if yes bank failed ( still they have net +ve ) , it will create a big panic .. I am 200% sure you yourself will withdraw your money from other banks .. this will have a far bigger cascading effect .. if the company has a value and infrastructure there is a good value to be made by bailing out .. anyway here it’s more of a takeover than bail out .. Yup, anyways it's going to be a takeover of stakes and right with privileged shares. Let's see how the transaction is structured. Iirc they did not declare the results for last quarter. The balance sheet is a mess. Unless and until they file the results with a genuine uncooked balance sheet, it is difficult to guess how much value is left. There is surely some but the balance sheet might throw up more skeletons from the cupboard. Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 2 minutes ago, Straight Drive said: Yup, anyways it's going to be a takeover of stakes and right with privileged shares. Let's see how the transaction is structured. Iirc they did not declare the results for last quarter. The balance sheet is a mess. Unless and until they file the results with a genuine uncooked balance sheet, it is difficult to guess how much value is left. There is surely some but the balance sheet might throw up more skeletons from the cupboard. they have exposure to Jet , Vodafone , hdil , rcom .. their declared bad loans are 30k crore atleast Straight Drive 1 Link to comment Share on other sites More sharing options...
velu Posted March 8, 2020 Share Posted March 8, 2020 19 minutes ago, randomGuy said: Any opinions on merger with SBI vs the current proposal if they merge share holders will be hit badly .. if they don’t merge and stay independent , whoever bought at lower prices will have a multibagger Link to comment Share on other sites More sharing options...
Straight Drive Posted March 8, 2020 Share Posted March 8, 2020 5 minutes ago, velu said: they have exposure to Jet , Vodafone , hdil , rcom .. their declared bad loans are 30k crore atleast Thanks velu 1 Link to comment Share on other sites More sharing options...
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