RBI moots discussion on new banking licences

Mumbai: The Reserve Bank of India (RBI) today brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for the same to foster greater competition, reports PTI.

"The Reserve Bank is considering providing licenses to a limited number of new banks. A larger number of banks would foster greater competition, and thereby reduce costs and improve the quality of service," the central bank said in a discussion paper.

The RBI also sought to know "whether industrial and business houses could be allowed to promote banks." And, should NBFCs be allowed to convert into or promote banks.

The central bank sought feedback on this as also business model for the new banks by 30th September.

It was of the view that greater competition would also promote financial inclusion.

Currently, India has 27 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, 4 local area banks, 1721 urban co-operative banks, 31 state cooperative banks, and 371 district central co-operative banks.

RBI said the new licenses are required since vast segments of population, especially underprivileged, have still no access to formal banking services.

The discussion paper outlines various pros and cons for norms like minimum capital requirements for new banks, promoters' contribution, caps on promoters' shareholding and other shareholders, foreign shareholding.

Various entities like Reliance Capital, Indiabulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling entering the banking space.

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COMMENTS

Vaibhav kumar

6 years ago

These private sector bank is harasshing thier junior emplyee.Responsable for evry fraud is junior emplyee who works for bank on front.What is the responsiblity of managment.I think his work only SHARE THE BIG PROFIT.

Private Bank Employees

6 years ago

Attn. Axis Bank Employees of Jabalpur / Indore / Bhopal / Gwalior / Nashik / Nagpur / Pune / Pune ATM Cell & Other Branches

We understand that sincere employees are forced by the Axis Bank management to contribute the amount in order to adjust the frauds. We also understand that the bank has done the one time settlement of Agri NPA accounts and the amount recovered from the farmers is much higher then the settlement shown in the books and the balance amount is adjusted by the zonal office functionaries like zonal head, zonal audit head and zonal compliance head, in order to close the various frauds without reporting to RBI.

So sincere employees be aware, if you are not involved in the fraud, then the management cannot force you to contribute money for adjusting the various frauds done by others. As an sincere bank employee we take a custodian oath at the time of joining the bank, that we will protect the depositors / investors money and hence hiding the frauds without reporting to regulatory authority is the biggest fraud and a financial crime of the senior management and the same can be backfired on the sincere employees. So don’t contribute any money and also don’t sign any papers blindly, and seek legal advice from your Advocate.

In case any sincere employee is a victim of the bank frauds, then BEIP Forum is ready to provide you the defense representative along with free legal aid services of drafting, counseling and educating the employees, while dealing with the management of the bank.

For more reports on the frauds, please click and read the link below.


http://www.patrika.com/news.aspx?id=4295...

http://www.patrika.com/news.aspx?id=4303...

http://www.tisriaankh.com/all.php?id=572

http://bollywood.bhaskar.com/article/MP-...

http://www.google.co.in/search?q=%E0%A4%...

You can contact the BEIP Forum officials on [email protected] or Mr. Sanjay Prabhu at Pune on 90294 96425 / Mr. Ernest Moraes at Margao, Goa on 94206 87137


Sanjay Prabhu
President - Private Bank Employees & Investors Protection Forum

SANJAY PRABHU

6 years ago

Income Tax Dept raids Axis Bank Jabalpur Branch for Fraud Account in the name of Narmada Vikas Pariyojna with 50 crores balances and opened without any KYC for more details click the following link or watch NDTV India Hindi News

http://www.naidunia.com/Details.aspx?id=...

SANJAY PRABU

6 years ago

Click the below link to read the comments of Parthasarathi Kumar

http://www.peerpower.com/et/1277/Grantin...

SANJAY PRABHU

6 years ago

Attention Suspended / Terminated Employees of Axis Bank

As all the employee and depositors are aware, how the Axis Bank Management has forced the branch employees to mis-sell various bank products such as Metlife Insurance, ( and now Max New York ) Bajaj Allianz General Insurance, Priority Banking Savings A/c & Channel1 Current A/c to all those poor customers and shopkeepers who cannot maintain those high end average balances and looted them by charging with complicated charge structure and the ultimate beneficiary of those charges are the Top Management and the Heads of Central Office & Zonal Office Departments, who got the large chunk of Variable Pay, Functional Pay, ESOP from 25000 to 200000 every year and also the Promotions in an unethical way.

As the Bank has withdrawn the powers of Branch Heads towards reversal of charges, the branches has adopted unethical practices to reverse those charges to customers such as increasing the DG Set fuel expenses, increasing the printing and stationery expenses, canceling the unclaimed DD and Pay Orders of customers etc, which was a serious frauds done by the employees in order to protect the interest of the depositors, as the management was not entertaining / responding to the mails sent by the branches towards reversal of charges.

The bank has no staff accountability concept since inception till 2009 and after my whistleblower they have discharged me from the services, and after that management starting dismissing the employees to show that they have been taking serious action. While taking those decision / actions, they have not even provided the defense representative to employees to defend the case and they have taken one sided decision, without going to the root cause of the frauds.

Now in order to bring it to the notice of general public and in order to decide the next course of action, all the suspended / terminated employees are requested to join the Private Bank Employees & Investors Protection Forum and make travel arrangement at their own cost to meet at Colaba, Mumbai on 29th August, 2010 along with the following documents.

a) Memo / Show cause notice issued by the bank and your reply to defend the case.
b) Copy of the minutes of the Personal Hearing signed by you and the inquiry officer of the bank
c) Charge sheet / Suspension Letter issued by the bank
d) Axis Bank Investigating Committee report
e) Termination Letter
f) Any other documentary proof to defend your case or to prove the unethical practices of the management are welcomed

Suspended / Terminated Employees, please note that if you have pocketed the money for personal benefits, then we will not be able to protect you, but if you have utilized those money towards reversal of charges, then yes we have all action plan to protect you and the investors interest.


Issued in Public Interest

Sanjay Prabhu – Pune

President - Private Bank Employees & Investors Protection Forum

Ex Discharged Employee & Share Holder of Axis Bank

[email protected] 95940 88588

REPLY

Vaibhav Kumar

In Reply to SANJAY PRABHU 6 years ago

Dear Sir,
We can say in these type of profit & fraud is done by junior employee.Management is only for sharing profit n also punish to junior staff.Its really a great law of INDIA

SANJAY PRABHU

6 years ago

Kashipur Axis Bank staff booked for Rs. 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank has been booked for defrauding about Rs. 2.20 reports from its 32 customers. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According to reports, Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money

In-charge of Kashipur police station said that so far 32 customers whose about Rs. 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected] crore. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

This is how the Axis Bank management is adopting the best practices in financial inclusion by looting the villagers and hence RBI should not allow entry of any new private sector bank. In Axis Bank the entire top management team including the departmental heads are corrupt and that is why the juniors are carrying forward the legacy of top management. Issued in Investors interest.

Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on

http://www.moneylife.in/article/8/8106.h....

With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Kashipur Axis Bank staff booked for Rs. 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank has been booked for defrauding about Rs. 2.20 crore. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According to reports, the Business Development Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money.

In-charge of Kashipur police station said that so far 32 customers whose about Rs. 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

This is how the Axis Bank management is adopting the best practices in financial inclusion by looting the villagers and hence RBI should not allow any new private sector bank. In Axis Bank the Auditors are themselves involved in fraud and hence the banks systems and procedures have failed.

SANJAY PRABHU

6 years ago

FINANCIAL INCLUSION OF AXIS BANK - Kashipur Axis Bank staff booked for Rs 2.20 cr fraud

Dehradun, July 22 -- The entire staff of Kashipur branch of Axis Bank Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. has been booked for defrauding about Rs 2.20 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>.

Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million from its 32 customers. A case of fraud and criminal conspiracy has been registered against as many 12 staff members including the branch manager.

According toaccording to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
..... Click the link for more information. reports, the Business Development Executive of the bank used to visit nearby villages and convince many villagers to open a bank account. He collected money from the customers but did not deposit it in their account. In some cases he deposited the money but got issued bearer cheques and withdrew the money.

In-charge of Kashipur police station said that so far 32 customers whose about Rs 2.20 crore was fraudulently withdrawn by the bank staff approached the police. A case under Section 4209, 467, 475 and 120B has been registered against the entire staff. Efforts are being made to arrest the accused, he added.

Published by HT Syndication with permission from Pioneer. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on

http://www.moneylife.in/article/8/8106.h...

With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Comments invited on RBI New Banking Licence Policy
Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalized bank and save the investors money. Let us discuss all those points in detail on
moneylife dot in/article/8/8106 dot html#comment-4969

Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion

Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Sanjaymprabhu at gmail dot com 95940 88588


SANJAY PRABHU

6 years ago

Respected Regulatory Authorities


Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us first answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator known for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the underprivileged by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail on http://www.moneylife.in/article/8/8106.h...


With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feels more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”


Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% YoY basis to Branch Heads and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Derivative Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds under their able leadership and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.


After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.


By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the present regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank branch on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.


I see the future of India in villages i.e. category III to VI Branches and hence in order to capture the great potentials of growth in villages and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion, but keep in mind that we should not run the bank at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the various charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Banks failure on Corporate governance which is as under



“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are readily available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to Hyderabad and Axis Bank being the schedule commercial bank while dealing with huge investment of public money should have invited quotes for premises through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of Rs. 282 crores , plus the large chunk of brokerage shared between top officials at Rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.


Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems in next 5 years and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of Satyam, which is already happening by forging the balance sheet figures such as showing high CASA figures on quarter end, by disbursing large credits and reversing those entries on 3rd of next month, showing NPAs below the actual higher NPAs. As far Axis Bank is concerned they took a biggest hit in Retail Assets, SME & Agri Credit and they have shifted most of the top officials from SME & Agri Credit to other departments. The banks quote of 0.30 % NPAs is misleading the investors and RBI should conduct the probe in against the CFO of the bank


My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.


Conclusion : In present scenario we don’t advise any more new faces in private banking including Co-operative Banks and yes if you really feel that we have to achieve the financial inclusion targets then float INDIAN POST BANK at every post office and start landing activity through them, which will give some facelift and income to the hardworking employees of Indian Postal Services including our underprivileged POSTMAN who are also the part of financial inclusion.


Sanjay Prabhu – Pune
President - Private Bank Employees & Investors Protection Forum
Ex Employee & Share Holder of Axis Bank
[email protected] 95940 88588

SANJAY PRABHU

6 years ago

Respected Regulatory Authorities
Before issuing any more licences to the NBFC & Industrial/Business houses, let us go through the ground realities from different angles as an Investor, Depositor & as a Regulator of the Republic Citizens of India and then let us come to an debatable conclusion if India really requires new faces of private banks and if answer is really YES then let us answer some questions i.e. whether the existing regulator has enough capacity to monitor those new faces? Whether the regulator was successful in the past in monitoring the existing banks? Where is the accountability of the regulator & the promoters in monitoring those sunk ships like GTB and various NBFCs like CRB, Lloyds etc ? Is our Regulator know for giving clean chits?. How does RBI monitor those mushrooming Microfinance companies ? who loot the poor by charging 25% to 40% Interest in the name financial inclusion, by adopting all unethical practices including involvement in money laundering activities. Does RBI has control over Microfinance Companies towards end use of those funds? Or is it the best time to consolidate banking sector with few private and nationalised bank and save the investors money. Let us discuss all those points in detail
With my 17 years experience in private bank, we have seen the tremendous growth in business by adopting all unethical practices, and major chunk of business is pooled from nationalised bank, as at that time the nationalised bank were not having core banking solutions and ATM network till 2007, but now due to core banking solutions, most of the corporate and individuals feel more secured with the transparency of nationalised bank and the same concepts stands true with insurance also and hence we see the reverse scenario of shifting the business back to the nationalised bank. Refer my comment on Axis Culture Ref Business India dated 25/07/2010 & page 8 of Business India – Independence Day special issue dated 22/08/2010. “Axis Bank has grown by acquiring business by putting aggressive pressure on the branches and adopting all unethical and illegal practices and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOPs up to the level of AVPs and giving 1 lac and 2 lac esops to MD and DMD, promotion not on the basis of merits and performance but on the basis of lobbying, frequent changes in PMS & Promotion policies has increased staff attrition rate. Its a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from shadow. Sanjay Prabhu – Pune Ex Employee & Share Holder of Axis”
Axis Bank in order to show 70% YoY growth, has given unachievable budgets of 90% to 100% yoy basis to Branch Head and employees and those Branch Heads has adopted all unethical and illegal practices to achieve the budgeted level of growth, and in the pressure of growing business they have unknowingly committed serious frauds not only in savings and current accounts but also a criminal breach of trust in Govt Accounts such as JNNURM 150 crores fraud with Nashik Municipal Corporation Accounts, Central Excise Chandigarh fraud, Defence Accounts frauds at Kanpur, out of court settlement with Exporters in forex derivatives frauds, Agri Credit fraud at Rajkot, Lucknow, Forex Frauds in Kolkatta and Mumbai, agricultural debt waiver and debt relief scheme frauds which has been happening for last 3 years and the bank internal and external auditors could not unearth the frauds, as the auditors like Mr. Vyas – VP & Zonal Audit Head & Mr. Nandi – erstwhile Zonal Head and presently the Audit Head of the Bank, was himself involved in serious frauds and hence before giving licences to any new faces I request CBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank.
After my whistle blower on staff accountability, axis bank management woke up suddenly after 15 years and first time in the history of axis bank they have realised that they are dealing in public money and they have terminated the services of those branch heads and junior employees who actually where not the real beneficiaries of frauds, but the Axis Bank top management who took a large chunk of variable and functional pay along with large number of ESOPs where the actual beneficiaries of those frauds, as all unethical practices has been forced by the management on the branches in order to deliver the results at any cost and hence the branch employees had no option, but to bribe the officials and get the business and the branch heads and junior level employees have been made scapegoat by the management.
By giving new licenses to new faces we will be compromising on safety and security aspects of public money, as the preset regulatory authority has failed in monitoring the existing private bank and if we allow new faces we will be putting more burden on the depositors money. Presently in Urban & Semi-Urban locations we see all the Nationalized & Private Sector Bank not competing but actually pulling the business of each other by adopting all unethical and illegal practices. In order to handle the same volume of business at one center we spend crores of investors money in various banks branches leased premises rentals & lavish Interiors, staff cost, Electricity and if we consolidate and grow with few private and nationalized bank, then every bank will have enough business to handle, we will see healthy competition and the greatest saving will be on the multiple cost incurred by each bank on leased premises rentals & lavish Interiors, staff cost, Electricity & transactions cost, which will definitely add value to investors / depositors money, at the same time it will be easy for Regulatory Authority too to monitor and keep a track of the situation.
I see the future of India in villages / rural areas i.e. category III to VI Branches and hence in order to capture the great potentials of growth in Agri business and to give equal opportunity for Poor and underprivileged to enjoy better standard of living, it is our obligation to provide transparent banking facilities towards financial inclusion in those villages, but keep in mind that not at the cost of looting the poor in the name of financial inclusion. Hence RBI as the regulator should make it compulsory for all private banks that rural Savings A/c & Current A/c should have an average balance requirement of Rs. 1000/- & 2500/- respectively and the charge structure should not be the looting one as it is prevailing today in private sector banks. RBI should monitor the bank more aggressively and also keep the third eye reserved in order to monitor the worst practices adopted by the bank management, so that we can protect the interest of investors / depositors, before it is too late. I would like to quote one such example of Axis Bank failure on Corporate governance which is as under
“In February 2010 the Times of India & Economic Times has reported that axis banks new headquarters deal in buying Bombay dyeing property at Rs. 782 croes is the costliest deal in the present market recession, where as the similar properties are available at Rs. 500 crores and even banks like ICICI is cutting its cost by shifting the major departments to hyderabad and Axis Bank being the schedule commercial bank should have invited quotes for such a huge investment of public money through all the leading newspaper for buying the property, instead they have opted illegal methods and paid the brokerage to the tune of 23.50 crores from public kitty and they have deceived the investors and taxpayers money to the tune of rs. 282 crores , plus the brokerage to the tune of rs. 23.50 crores. Banks top officials are involved in multi crore fraud of leased premises, wherein they have purchased the Branch & ATM premises in their relatives name and given it to Axis Bank at a rent which is twice above the prevailing market price and if this type of practices continues in private sector banks then I am sure the new junior faces will follow the legacy of our new and old generation private sector banks and the depositors will be taken for a Ferrari Ride.
Wake up regulators, its time to act judiciously in the interest of the investors, as every one wants to take a bath in the holy rivers of India and make it more polluted. If this fraudulent practices continues with the blessings of our regulators, then we will see collapse of Indian financial systems and RBI will have to merge this white private sector elephants with nationalized bank and we will see more frauds in banking similar in line of satyam.
If you really wants to give the opportunity of adding new faces in the banking, then I request you to give the opportunity to the Indian Post Offices and LIC, and I am sure they will handle the job of financial inclusion in a sincere manner.
My sincere thanks to Dr K. C. Chakrabarty, Deputy Governor, RBI, as we see one person among the 113 crores population, who can voice the concern for investors protection and if every citizen try to perform his duties with sincerity then India can have Ram Rajya against all the odd Rawanas.

Sanjay Prabhu – Pune
President of Private Bank Employees & Investors Protection Forum
Ex Discharged Employee & Share Holder of Axis Bank

[email protected] 95940 88588

REPLY

Ravi Mishra

In Reply to SANJAY PRABHU 6 years ago

How do you come to know these facts?

African nations offering land for free to Indian farmers

Bangalore: Some African countries are offering land on lease for 99 years for free to overseas farmers and India should grab the opportunity, reports PTI quoting the Associated Chambers of Commerce and Industry (Assocham).

Assocham has sent a proposal to the external affairs ministry to consider tapping the emerging agricultural opportunities in Africa and offering to act as a facilitator to help Indian farmers reap the benefits of the huge potential that lie in Africa.

"Hoping to address the huge issue of food shortage, these countries have begun inviting overseas farmers to come and cultivate their lands. These governments are willing to lease land free of cost for 99 years," Assocham secretary general D S Rawat told PTI.

Farmers are free to cultivate the land and raise any crop and sell it to the domestic market and also export.

"It is a win-win situation for the farmers and for the African governments," said Assocham director Om S Tyagi.

"Since the lease is for 99 years, it means that a farmer is in control of the land for his life time. It means land for roughly around three generations," he said.

The countries that were in the forefront trying to attract agriculturists were Sudan and Ethiopia, he said.

Several Chinese farmers have already accepted the offer and begun cultivation of land, said Mr Tyagi.

A number of farmers from Punjab have also on their own initiative migrated to these countries and begun cultivation. However, the chamber was not able to provide statistics on the number of Indians farming in these African countries.

According to J Crasta, chairman Karnataka State Council, "We know of five farmers from Karnataka who have already acquired hectares and hectares of land and have begun farming and are doing well".

Assocham has proposed to the ministry that the chamber was willing to coordinate between these countries and Indian farmers to facilitate those desirous of going overseas for farming.

It has suggested that part of the cost should be funded by the Centre or state governments and partly by it.

It was willing to identify farmers who want to take up the opportunity and to help them network with the embassies of these countries to complete the procedure and fulfil the various requirements, said Mr Tyagi.

"We are keen in taking educated farmers", said Mr Rawat adding the process has begun with over 1,000 farmers in Patiala who have come forward and expressed their intent. Out of these around 300 have been screened and work was on to get them in touch with the required government agencies.

According Mr Rawat, such a move would be specially beneficial for farmers in the country who were working on lands of others to go and have a land piece of their own.

It would also, he said, in some way mitigate the current scramble for agricultural land in India.

User

COMMENTS

Guljar

3 years ago


I am interested for this Agriculture 99 year lease Project Plan .Please someone provide me more info where should i have to contact?

REPLY

Guljar

In Reply to Guljar 3 years ago

this project proper not clear plz advise

jagmohan sharma

3 years ago

how to apply , pl advise
Regards
jms

ganga kr sinha

3 years ago

Whenever such article published, a coordination group with email and phone no. also be published

Pardeep saroha

5 years ago

Hello sir aim pardeep interested for this agriculture lease plan pls sir someone provide me more info whare should i have to contact my mob no 9991666382

Davinder Singh

5 years ago

I am interested for this Agriculture 99 year lease Project Plan .Please someone provide me more info where should i have to contact?

karamveer sandhu

6 years ago

i want to invest in agricultural plans in zimbabwe for punjab farmers.please kindly give me some info about the plans for investing.

dhanasekar

6 years ago

plz tell the details of this news and how to register and all details whom to contact

Sandeep Rathore

6 years ago

to whom should we contact for this ???

anand mehra

6 years ago

its fantastic, i wish to take this oppurtunity but from where can i apply for this and how in shortest possible time

jagmoha sharma

6 years ago

term & condition required to get free agriculture land in Africa .
regards

Ramarao

6 years ago

In this case govt is doing well But if govt provide more details then it is for the indian farmers to come forward .More over this is helpful for africans as well as indian farmers.

Tata Motors — retail investors should exercise caution

The scrip is at an all-time high, but going ahead, Jaguar Land Rover’s performance will hinge on demand from the US and China, favourable currency movements and depressed raw material prices

JLR was a show-stopper

Tata Motor's Q1 performance exceeded the Street's expectations by a wide margin thanks to a stellar performance from Jaguar Land Rover (JLR). Tata bought the British automotive company in 2008 for $2.3 billion in a deal that drew huge criticism at that time. JLR's successful turnaround could be the first step for the Tatas in proving critics wrong - the second, of course, will have to be lowering the massive consolidated debt quicker than expected.

JLR margins: 410 bps improvement

JLR's margins saw a huge 410 bps q-o-q improvement due to a mix of factors such as favourable currency movement, better product mix, and cost control. A weaker pound boosted the profitability of JLR's US exports. A weaker euro lowered costs. JLR also lowered its incentives (discounts) and exercised tighter cost control. Its EBITDA margins now stand at 15.5%. For margins to sustain in the coming quarter, the pound and the euro have to weaken and commodity prices will have to remain lower.

Tata Motors' standalone EBITDA margin was higher than expected due to higher 'other income' and lower amortisation of product development expenses. Ace Truck, Ace Magic and Winger continue to register strong sales. Indigo Manza had a successful launch.

Demand: Strong from US, China

Demand remains strong from China and North America (UK is still lagging). China made up for 11% of sales in Q1 (8% in FY10) while UK declined to 23% (28% in FY10). If demand remains so strong, incentives and discounts should remain low. JLR is launching the new LRX Land Rover and a smaller Jaguar - this should support volumes (next year). For competitors too, demand has been strong - Daimler and BMW recently raised guidance.

JLR inventory and realisations

JLR's inventory (both at the dealer and JLR end) are now down to a comfortable 77 days (102 days in Q1 FY10). It has sustained at current levels for three quarters now. Its realisations have been steadily climbing for a year now and were up 6% q-o-q - they have risen from £31,337 in Q1FY10 to £38,209 in Q1FY11.

Some supply constraints

Tata Motors indicated that with the current manpower, JLR is operating at close to full capacity. It is also encumbered by the supply of engines (from Ford). Hence, most models are on a waiting period of 2-3 months.

Cost-cutting

JLR sources nearly 20% of its components from low-cost centres like Eastern Europe which it plans to increase to 35% over the next few years. Warranty costs have been much higher for JLR at ~5%, versus ~2% for competitors. JLR says it will work on internal and vendor-related processes to minimise these costs. JLR plans to (eventually) shut down one out of its three operational plants and reduce the number of employees. For now, though, JLR has resumed hiring.

A quick look at some key numbers:

Consolidated:
Net sales: Rs270.56 billion (up 65% y-o-y, down 7% q-o-q)
EBITDA: Rs39.5 billion (up 563% y-o-y, up 17% q-o-q)
Net profit: Rs19.89 billion (down 10% q-o-q)

Standalone:
Net sales: Rs104.16 billion (up 63% y-o-y, down 15% q-o-q)
EBITDA: Rs11.75 billion (up 61% y-o-y, down 5% q-o-q)
Net profit: Rs4.4 billion (up 119% y-o-y, up 25% q-o-q)

Most brokerages tracking Tata Motors are completely blown away with JLR's performance and are predictably asserting that it will sustain. However, it faces three key challenges - US and China demand has to sustain at current pace but both economies are showing signs of strain, currency movements have to be favourable, and commodity prices have to be down. For now, the dollar index is showing absolutely no signs of rising, so it may be difficult for even the last two conditions to come true. Tata Motors is at an all-time high today. Retail investors should exercise caution.

User

COMMENTS

Gaurav Verma

6 years ago

hello i bought tata motor @1109/- . what shoul i do? is it hold he share? ya sell it what i do ?

REPLY

GIRI k

In Reply to Gaurav Verma 6 years ago

SELL IT AT THE EARLIEST OPPORTUNITY OF 1050+ OR AT MAY BE DIWALI PEAK . DONT BUY ANY SHARE FOR NEXT 2 YEARS OR TILL SENSEX TOUCHES 12000 POINTS.

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