National Defence College was on terror radar: Headley
Mumbai : Pakistani-American terrorist-turned-approver David Coleman Headley told Special TADA Court Judge G.A. Sanap on Friday that terror outfits Lashkar-e-Taiba and Al Qaeda considered targeting the prestigious National Defence College in New Delhi.
 
He claimed that the Al Qaeda thought the NDC was a good, high value target and that he visited the college campus casually once in 2007 at the instance of his LeT handler, Sajid Mir.
 
After the 2008 Mumbai terror attack, Headley again did a recce of NDC and the Chabag Houses in Goa, Pune and Pushkar on the instructions of slain terrorist Ilyas Kashmiri, who later joined the Al Qaeda.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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JNU students union's head arrested for sedition
New Delhi : The president of Jawaharlal Nehru University's students union was on Friday arrested in a case of sedition and criminal conspiracy, police said.
 
Kanhaiya Kumar was arrested for raising anti-India slogans at an event organised by the students to commemorate the hanging of Parliament attack convict Afzal Guru, who was hanged in Tihar Jail in 2014.
 
He was arrested by the Vasant Kunj north police in south Delhi.
 
Earlier on Thursday, police took suo-moto cognizance and registered an FIR against unknown students.
 
The university witnessed violent clashes between two students groups on Tuesday night over an event after which police were deployed to maintain law and order.
 
The students from a Left wing organisation were to hold an event marking the death anniversary of Guru in which anti-India slogans were raised.
 
Another commemorative meeting was held at the Press Club of India in Delhi on Wednesday where anti-India slogans and placards were raised.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Bad loan clean-up must co-opt 'name, shame' policy
New Delhi : Even as Reserve Bank of India (RBI) Governor Raghuram Rajan says the claims made by analysts on the size of bad loans in the country's banking system border on scare-mongering, official data does not paint a rosy picture -- and even shatters some popular perceptions.
 
As per statistics available with the central bank, the net NPAs, or non-performing assets, of all banks, excluding accrued interest, was 2.8 percent of total loans as on September 15 last year. For state-run banks, it was 3.6 percent -- a sign that it is not uniform across the industry.
 
But the problem gets compounded when one takes into account the gross NPAs, that also includes the interest component: 5.1 percent for all banks and 6.2 percent for state-run banks. And by adding one more component, rescheduled loans, the issue becomes even more perplexing.
 
The quantum of gross bad loans, along with rescheduled ones (usually done when a loanee is unable to pay in time, and banks allow some more time so as to get the money back), jumps significantly to 11.3 percent for all banks and 14 percent for government-run banks.
 
Then there are the write-offs -- that is, the loanee has been unable to pay and banks are forced to consider them as exposures they'll never get back. Together with gross bad loans and rescheduled assets, this ratio is at 14.1 percent for all banks and 17 percent for state-run ones.
 
For private sector and foreign banks, it is distinctly lower at 6.7 percent and 5.8 percent.
 
When we compare historical data, the total bad exposures, including rescheduled and written-off assets, has grown to 17 percent as on September 15 last year, from 13.4 percent in March 2013 and 14.1 percent in March 2014 and 16.1 percent in March 2015.
 
For private banks the respective figures are: 5.4 percent, 6.4 percent and 6.7 percent, while for foreign banks, it is 5.5 percent, 6.3 percent and 6.5 percent. Rajan says not all bad loans are due to malfeasance. Then governance must be the reason for private versus state-run mismatch.
 
Is this not alarming? 
 
A presentation on asset resolution and management of bad loans of commercial banks by RBI Deputy Governor S.S. Mundra at a banking conclave of the Confederation of Indian Industry on Thursday, just ahead of the talk by Rajan, seeks to put the issues in perspective.
 
Contrary to the general perception, the level of stress is a lot more pronounced in the so-called non-priority areas, when compared to the exposures to the farm sector and the micro enterprises. This apart, large industries are the ones that have the highest NPA ratio.
 
The central bank data reinforces this fact. The ratio of gross bad exposures, plus rescheduled loans, plus written-off assets for all banks was 7.9 percent for the agriculture sector, 12.3 percent for the micro enterprises and a whopping 23.7 percent for large industries.
 
For small and medium scale sectors it was 16.8 percent and 31.5 percent, respectively.
 
The picture emerges even clearer seeing the actual quantum of money involved. As per the Reserve Bank's weekly statistical supplement, the total outstanding bank credit of all banks was Rs.67,060 billion as on September 15, 2015 -- this date has been taken for comparisons.
 
If the total exposure in terms of gross NPA, rescheduled loans and write-offs was 14.1 percent for all of India's scheduled commercial banks, then the actual quantum works out to Rs.9,455 billion (around Rs.9.5 lakh crore). 
 
The assumption may be that banks that were in denial over the poor quality of their loans are waking up now. This is getting reflected in the balance sheets for the quarter ended December 31, 2015. In doing so, if their net NPAs exceed 10 percent, there will be several curtailments.
 
Rajan, nevertheless, sees hope. He feels the extent of government help to commercial banks in the form of capital will be adequate -- Rs.70,000 crore in the present budget. He is also confident that by March 2017, the banks will have a clean and fully-provisioned balance sheets.
 
In doing so, the misdemeanor in the system must also be addressed. The Supreme Court has given its consent to banks to publish the names and photographs of defaulters, including directors. This "name and shame" policy must be pursued vigorously by both banks and the watchdog.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

TIHARwale

1 year ago

This Govt of Feku56 is hand in glove with crony capitalists. If the government is simply bailing out banks without making efforts to recover money from corporate defaulters, that equals to letting crony promoters loot taxpayers’ money. It needs to clamp down on the corporate wilful defaulters and recover money. If Subrata Roy (of the Sahara group) can be put behind bars, there is no reason why the same can’t be done with a wilful defaulter of Rs 7,000 crore loans to some 17 banks, who have committed financial irregularities by diverting bank funds to other group activities, dragged lenders to courtrooms instead of repaying money and continues to flaunt his wealth challenging the banks.
The point is this: If this government shows the guts to act on Mallya that would send a strong message to other wily promoters that there is no more free-lunch in this country with taxpayers’ money. Else, it will have to answer the same taxpayer why his money is used to bail out Sarkari banks looted by crony promoters.

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