Loans
SBI not to cut lending rates

Pratip Chaudhuri, SBI Chairman, said the bank will lose Rs300 crore because of the additional provisioning requirement while gain from the CRR cut is only Rs225 crore

Mumbai: State Bank of India (SBI) has ruled out any cut in its lending rates due to steep hike in the provisioning for restructured standard assets, a senior bank official said, reports PTI.

 

“The 75 bps (0.75%) hike in provisioning has closed the room for any lending rate cuts. Therefore, our asset liability committee, which met yesterday, decided to leave the lending rates unchanged,” an SBI official told PTI.

 

The only measure which may have prompted a look at the rate cut was the 0.25% reduction in the cash reserve ratio by RBI in its second quarter policy announcement on Tuesday.

 

After the credit policy announcement, bank chairman Pratip Chaudhuri had hinted at a rate cut saying the Alco will be meeting in a day or two and the bank will prefer a ‘secular cut’ in the base rate.

 

The RBI, as part of its gradual move towards higher provisioning for standard restructured assets, as mooted by the B Mahapatra committee, has increased the same to 2.75% from 2%. The committee has proposed it to be raised to 5%.

 

Mr Chaudhuri said the bank will lose Rs300 crore because of the additional provisioning requirement while gain from the CRR cut is only Rs225 crore.

 

However, he had said the Rs75 crore shortfall will not deter the bank from cutting rates as it has already budgeted Rs10,000 crore towards provisions for the fiscal and the asset quality is improving.

 

With a base rate of 9.75%—the last cut was in mid-September by 0.25% following the CRR cut in the mid-quarter policy review, SBI’s base rate is one of the most aggressive in the banking system at present.

 

Already the bank has cut lending rates to a low of 10.25% on home loans and 10.50% for auto loans as part of a festive offer valid till the end of December. The offer also includes a 50% reduction in the processing fee.

 

Bankers have been maintaining that changes in the base rate are directly aligned with the movement of their cost of funds and the broader drop in deposit rates observed in the recent past is being seen by many optimists as a pre-cursor to a lower rates regime.

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New MD & CEO for BSE

Ashishkumar Chauhan appointed as MD & CEO of BSE

 
Ashishkumar Chauhan has been appointed as Managing Director & Chief Executive Officer of BSE Limited. He was working as the interim CEO till date.
 
The selection was done by the Selection committees of BSE in co-ordination with Egon Zender International, a leading international talent search firm and all required approvals from SEBI have been received.
 
Mr Chauhan is working with BSE since 2009, before which he worked as the President and Group Chief Information Officer of Reliance Industries. He joined then as a deputy Chief Executive Officer and was elevated to the position of Interim Chief Executive Officer in May 2012. He has worked in various areas including technology upgradation, has looked at various regulatory issues and has also worked closely with the team to develop innovative products and was ranked amongst the “top CIOs in the world” by several magazines and institutions from 2005 to 2009. 
 
Mr Chauhan completed his B-tech in Mechanical Engineering from IIT Bombay in 1989 and accomplished his PGDBM from IIM Calcutta in 1991.
 
Besides working at BSE, Mr Chauhan is also a member of the Board of Governors of the Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur. In addition to that, he also serves on Central Board of Direct Taxes (CBDT), PNG on Information Technology, Securities and Exchange Board of India (SEBI)’s Primary Market Advisory Committee (PMAC).
 

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Mega wedding turns the spotlight on frequent misuse of political power and money

The upcoming wedding of Andhra Pradesh transport minister’s daughter’s wedding highlights how officials misuse power and money to overcome entrepreneurs and the common man. This isn’t the first time this has happened

 
The recent controversy surrounding the extravagant wedding of Andhra Pradesh (AP) transport minister Botsa Satyanarayana’s daughter highlights the ways in which tax payers’ money is being misused at the cost of small entrepreneurs. According to media reports (http://timesofindia.indiatimes.com/city/hyderabad/Botsa-daughters-mega-wedding-bash-has-govt-staff-in-a-tizzy/articleshow/17054529.cms) the mega wedding is expected to accommodate around 80,000 invitees, including top government officials, governors and ‘VVIP’ guests.
 
So big and ‘important’ was the wedding that AP government officials had to call off the “Gram Sandarsha” programme as ministers had to attend the wedding. It is shocking to learn that some of them even misused tax payers’ money to attend the wedding on the pretext of attending meetings. Further more, media reports that the panchayati raj department, which is supposed to look after interest of villager and the poor, have been entrusted to take care of hospitality needs instead, especially accommodating wedding guests in five-star hotels. 
 
Even worse, we hear that some vehicles owners were asked to have their vehicle impounded because there was lack of vehicles to transport ministers to the wedding. Check out the image below. 
It doesn’t end here. It is also reported that taxi owners were promised rent of Rs1,000 when the commercial rate is actually Rs4,500. Even small entrepreneurs like taxi drivers are coerced to give up their gains if they had gone about doing their business. 
 
However, this kind of atrocity isn’t new to the Andhra Pradesh government. It has happened before as well. Former expenditure secretary to the central government, EAS Sarma had written a strongly worded letter to the state chief minister about the manner in which small entrepreneurs are being made to suffer a loss due to strong arm tactics of the government and all for an extravagant spending on another wedding. In this case, an examination venue had to be shifted to accommodate another wedding, which resulted in loss of life and future life prospects.
 
 
E.A.S.Sarma
14-40-4/1 Gokhale Road
Maharanipeta
Visakhapatnam 530002
Tel. Nos. 0891-6619858/ 9866021646 
 
To
Shri Kiran Kumar Reddy
Chief Minister
Andhra Pradesh 
 
Dear Shri Kiran Kumar Reddy garu, 
 
I enclose an extract of a disturbing news report on the shifting of a centre in Srikakulam for the examination of candidates for VAO/ VRA appointments on Sunday to accommodate the Minister’s son’s wedding reception! There have been reports of at least one candidate trying to rush to another centre as a result of this avoidable dislocation, meeting with a serious accident in which her father lost his life and she was injured. 
 
Some days ago, the same Minister, for a similar event, did not hesitate to break down the compound wall of a school and damage the precincts, without either the district authorities or the State Education Department resisting it. 
 
In the recent past, this very same person has thrown a veiled threat against all those that disagree with him on matters of public policy, committing an act of indiscretion that is condemnable. 
 
Of late, we have witnessed the same Minister’s involvement in the allotment of a valuable granite mine to his son in the same district. In another district, his son has got a valuable apartment for a song in return for the favours shown to the building developer who has misappropriated the land on the basis of fabricated documents. The State government has shown its complicity in this infamous matter by (i) dragging its feet in allowing prosecution of the culprits under Prevention of Corruption Act, (ii) suppressing the facts before Hon’ble Lok Ayukta on a case filed against this and (iii) allowing the culprits enough time to interfere with the evidence and get interim court orders against public interest. 
 
In any civilized society, such persons would have been brought to the book straightaway. A public representative would have been sacked without any hesitation from the sacred office he is in occupation of. It is only in a banana State that encourages feudal tyranny that such persons are allowed to continue and flaunt their authority to threaten the common people. 
 
If your government allows such atrocities to persist, we will be constrained to draw the inference that they have your taciturn support. Ours is a civilized democracy in which the rule of law is supreme and the persons occupying public offices accountable. They cannot take the law, the democratic conventions and the people for granted.
 
I request you to ascertain the facts and, if the facts as reported are true, ask the concerned Minister to quit gracefully. 
 
Regards,
 
Yours sincerely,
E.A.S.Sarma
Visakhapatnam
20-2-2012
 
It would seem that the Andhra Pradesh government is not concerned about the welfare of entrepreneurs and the common man and continues its lavish ways at the expense of the tax payers’. There is no end in sight to this brazen loot of tax payers’ money, that too for a mega wedding and the way they strong-arm to their own convenience. 
 

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COMMENTS

NSriramamurty

4 years ago

CNN_IBN Reporters Questioned Ministers ,Including Botsa Satyanaraya,why so many Govt.officials are utilised for it and their stock reply is that so many Ministers attended Marriage and consequently elaborate Bandobastu arrangements are done for Function's smooth running.But Ministers,etc have got their OWN VIP Security Provided DGP of AP,IG of visakhapatnam District and district transport commissioner have to answer on whose orders they have done like this.CM do not take any action on Mr.Sarma's letter ,as his existence stands on ministers support,but he has got minimum duty of issuing circular to all departments not to waste its staffs valuable time for Private functions.

NSriramamurty

4 years ago

Now Media says 700 Constables and 125 Police officers including DSPs were on Duty for Wedding to ensure smooth Function. Imagine Public Money Wastage for a Private Wedding.
2 ) Govt. boasts of Doing manythings for Girls/Ladies.Girl's wedding Expenses are to be Borne by Her Parents ,as per Customs Practiced in India now.Parents will be in debts for many years on perforforming Daughters Marriage.Afraiding of Parents Financial Troubles for her Wedding,Girls are Postponing their Marriages,Leading to Non-availability of Brides ,who are already in Scarcity, due to growing gender gap.( 3 ) POLITICIANS should be of Examples to society by performing their Daughters Marriges Simpler ,so that society can guided to follow.Unfortunately With their Money earned UnEthically,Politicians are using Weddings as a show of their MONEY Power.( 4 )In addition to No-Dowry ACT in Existance,Govt shoud enact Law to Limit Brides Parents Burden,by Prescribing Limits of Expenses incurred for Wedding,to Different economic classes of people in Society.

TIHARwale

4 years ago

it is shameful the Minister belings to a party where the then PM Indira Gandhi had marriages of both her sons with guests numbering no more the eleven. Children of Communist Party CMs also get married where thousands of well wishers participate but the guests will be served only cool drinks. it is time that guest control acts are put in place for elected representatives and Public servants that guest list is limited to 100 only.

NSriramamurty

4 years ago

1 ) Visakhapatnam-Deputy Commissioner and Mr.P.GopiKrishna - Assistant Commisioner , who signed Letter are to be suspended, for issuing such official letter for a Private Wedding.All State Govt.Employees worked for the Wedding Arrangements are to be ashamed for forgetting that their salaries are Paid from Public Taxes and not by Ministers-for not knowing their exact Duties. As all this Data can be obtained by using RTI,IAC team or NGOs should try to get data and file PILs,so that Courts can order their suspension enmass.
2)Rs.2 Crores are spent for the Wedding set by film sets designers - itself is UNImaginable -that too in SRIkakulam - underdeveloped area -in Poor Country like India. (3) without Bueucrates Submissiveness Ministers Money Grabbing or their Extravanaza Expenditure is not Possible.
Thus sending Home Submissive Bueareocrates and corrupted Politicians is only solution to curb such things.

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