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Will this 79-year old’s protest move the government and the RBI to stop mis-selling by banks?

When a banker comes to your home, exploits your trust and dupes you, he is called a bankster. Why doesn’t such systematic criminal exploitation of hapless depositors move the government and the banking regulator? This 79-year old has resorted to Gandhigiri to get justice

In the past couple of days 79-year old Mangelal Sharma goes to his bank (IndusInd Bank, Preet Vihar Branch, New Delhi) wearing a specially made T-shirt. It carries his photograph and says “BEWARE IndusInd Bank is a cheat. It has cheated me and may cheat you”. He says there was a lot of commotion when he first walked in and some said that they too had been cheated by the bank. On Saturday he wore the T-shirt and danced at the branch singing “Kya mil gaya sirkar toomhen meri FD (fixed deposit) toodake, mujhe mutual fund mein fansa ke, mujhe choona lagakey”. This parody of this song from the film Kissa Kursi Ka has Mr Sharma asking the bank what it achieved by entrapping him to invest in a mutual fund.

 

The story behind this protest will make you furious. It is about how banks have turned into banksters and send out armies of managers to entrap, con and lure trusting account holders to invest their saving in instruments that earn them a high return. ML Sharma, like the majority of senior citizens in India, has his money in fixed deposits. The risks are low and the interest income provides him with the income security someone at his age and in his circumstance requires. He is 79. His wife, at over 70 years, has recently undergone second knee replacement surgery, after the first operation in October 2012 was unsuccessful. He is, in his own words, an “old man with an ailing wife”. Yet, his bank, IndusInd Bank, thought it fit to sell him a mutual fund product with a lock-in period of five years by persuading him to withdraw his fixed deposit of no less than Rs7 lakh and invest it in what they told him would simply be another low-risk banking product. This is no doubt a shocking example of how far banks will go to earn commissions. Mr Sharma approached the Banking Ombudsman for justice, but his case was rejected outright because Mr Sharma had signed the investment form. Apparently nothing else matter. This gives banks and their agents the license to lie and cheat any of us out of our savings so long as the signature on the form is ours.
 

Yet, this 79-year old hasn’t given up. In his reply to the banking ombudsman, after his case was dismissed, Mr Sharma has written, “I beg to knock on your door for justice again. Sir, I am totally unable and devoid of energy to take legal action in a court and count only on your sense of justice and mercy. Even a judge considers the relevant circumstances under which a person commits a murder to arrive at the correct judgment. Just the fact that I had signed the investment documents is insufficient. It must also be considered under what circumstances I had signed the form.”
 

It is very apparent what transpired. Mr Sharma says, “I never approached the bank for investment advice. Jyotirmay Sharma, the branch manager, came to my house, along with another officer, Mr Kesharwani. Yet, the bank still claims that they came to my house on my request. That they came to my residence to tender advice on my seeking is unthinkable. If I had sought any advice, the branch was the proper place, not my residence. They had gone on a hunting spree for a gullible person like me for earning profit for the bank.”
 

While at Mr Sharma’s house, the bank representatives found out that he had no money to invest. Knowing that he would object to breaking his fixed deposit, as he would have to pay a penalty on premature withdrawal, they offered to waive the premature withdrawal fees. They then proceeded to tell him about a cooked up product name—Development of Wealth Scheme or DWS, which they said was also offered by IndusInd Bank. What they did, in fact, sell him was DWS Hybrid Fixed Term Fund Series 10 Growth, which is sold by Deutsche Asset Management India Pvt Ltd (DWS).

 

Mr Sharma says, “They did waive the premature withdrawal fees. But at no point was I told that I was investing in a mutual fund. I was told it would be a scheme of the bank itself. They told me I could quit the scheme at any time and that the proceeds would be credited in my savings account the very next day. I did not think of a mutual fund or lock-in period at all.”
 

At the time, Mr Sharma appreciated the service of the bank employees. The service, of course, included filling up the form as well. All Mr Sharma needed to do was sign the form. Today he regrets trusting the IndusInd bank employees. Mr Sharma says, “I had signed the cheque in the name of DWS and the rest was written by the bank personnel. Had I written full name of the mutual fund, I would have known. I am ready to bear the fees of a handwriting expert for examination. I am even ready to pay a penalty of Rs1 lakh if it is proved that the full name of the scheme on the cheque is in my handwriting.”
 

It was only when an email, sent by IndusInd Bank on 11 October 2012, was received by Mr Sharma that he realized what had been done to him. He said, “I raised an objection the very same day I received the email. Had I known the terms and conditions of this investment earlier, I wouldn’t have raised the objection immediately after receiving the email.”
 

Given that it was a mutual fund that was sold to Mr Sharma, various standards laid down by Securities and Exchange Board of India (SEBI) should apply. In 2008, SEBI issued rules that said that stockbrokers “owe their clients a duty to provide suitable investment advice in the best interest of the clients”. Very soon financial advisors will also have to ensure that people get appropriate advice. But bank relationship managers continue to indulge in brazen misselling and con people into buying mutual funds, unit-linked insurance products and hybrid-derivative products on the promise of higher returns.
 

I wrote to the RBI governor Dr Subbarao, SEBI chairman UK Sinha, RBI deputy governor Dr KC Chakrabarty and the revenue secretary Sumit Bose about Mr Sharma’s case on 12th April. As usual, they have maintained a complete silence. To us, the deliberate cheating of senior citizens and women—who are the biggest targets for banksters—is a bigger problem the same bankers laying out a red carpet for those with political black money to be laundered.

 

For us, this is not just another article, especially since the depositor/investor himself is making all efforts to get justice. Moneylife Foundation, the voice of savers, wants to start a campaign to stop such criminal malpractices. Here is what we propose. We want to collate all such cases of mis-selling by banks and represent to the regulators to stop the abuse. We need as many examples as possible.

 

Call to action

 

If you know of similar cases of mis-selling by banksters, please write to us with details at [email protected].

User

COMMENTS

Kisalay Somani

4 years ago

Moneylife Team, Kudos to your efforts to get justice for Mr. Sharma. Now shouldn't we proceed with filing a criminal case with the law authorities against IndusInd for "Fraud and Forgery" of tampering with a financial instrument as per Mr. Sharma's claims.
Just getting Mr. Sharma his hard-earned money isn't enough to set an example for these institutions.

-Kisalay

REPLY

Michael Mason-Mahon

In Reply to Kisalay Somani 3 years ago

We know that there are problems in India, just like the rest of the world.

What have the RBI about Mr Sharma's case?

Mr Sharma has show India and the whole world what one very brave man can do. He is a very courageous man and I do salute you.

Will the RBI show how brave they are?

The financial sector is very important to any country, we have seen the abuses that is going on.

These abuses calls into question the creditability of the Regulators.

Michael Mason-Mahon

In Reply to Kisalay Somani 3 years ago

We know that there are problems in India, just like the rest of the world.

What have the RBI about Mr Sharma's case?

Mr Sharma has show India and the whole world what one very brave man can do. He is a very courageous man and I do salute you.

Will the RBI show how brave they are?

The financial sector is very important to any country, we have seen the abuses that is going on.

These abuses calls into question the creditability of the Regulators.

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

REPLY

Michael Mason-Mahon

In Reply to Suman Khanna 4 years ago

Dear Suman Khanna
Please allow me to introduce myself I am Michael Mason-Mahon and I am base in London.

If you would like to send me the full details of your complaint and a contact number, I will send your complaint to the Chairman of Aviva in London. I am a small shareholder in Aviva, but I will get you complaint investigated properly.

Kind regards
Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."

Suman Khanna

In Reply to Michael Mason-Mahon 4 years ago

Dear Mr. Michael,
Thanks your your concern. I am sending you all the details on mail

Suman Khanna

4 years ago

v

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

REPLY

Sucheta Dalal

In Reply to Suman Khanna 4 years ago

What is the purpose of posting the same comment a dozen times without any details?

Maybe you can consider making the effort to get our email ID and send clear details as we require. How can anybody help with a dozen messages and no details?
Also, what have you done so far to help yourself?

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

Suman Khanna

4 years ago

Dear Sucheta Ji,

I have also been cheated in the ame manner. I had saved the funds for my sons marriage. An executive from Aviva approached me with a lucrative Fixed Deposit and sold me insurance instead.
I have written to numerous people but have not got any relied inclusing IRDA. Request you to please help me.
Suman Khanna

nishi

4 years ago

SEBI controlled by Govt, RBI controlled by Govt, Banks controll the politicians so its an unholy nexus

India is no longer place to do business sincerely or you will go bust

Michael Mason-Mahon

4 years ago

Will the RBI & SEBI start an Official Investigation into HSBC?

How many INNOCENT VICTIM's of HSBC must there be before the RBI STOP's HSBC in India?

Before reading anything about HSBC, people should go to youtube: 1) How HSBC Chairman Mr Flint lied to shareholders. 2) Protest against HSBC in Mumbai. 3) Help Stop Bankers Cheating

Is Lies the new truth at HSBC? Is Cowardice the new Courageous Integrity at HSBC? Is HSBC stealing people’s reputations, is HSBC committing fraud against customers in India and Indian's around the world?

Mr Gulliver states 'HSBC of today' is vastly different to the one that made the errors. Mr Gulliver the behaviour was criminal not an error. Is HSBC is still abusing customers in India; many people are claims HSBC has committed fraud against them?

Before any Company engages in doing business with HSBC is it compatible own Business Code of Behaviour
Senate investigation concluded that HSBC provided a, quote, "gateway for terrorists to gain access to U.S. dollars and the U.S. financial system."
Senator Levin said HSBC had been ‘pervasively polluted for some time’.

Can the world forget the last ten years of HSBC Group helping Drug Cartels, Iran, Libya, Cuba and ignoring USA Trading with the Enemy Acts, even after being warned it still continued, who was the Finance Director? Mr FLINT

What HSBC has now admitted to is, more or less, the worst behavior that a bank can possibly be guilty of.
These crimes were so obvious that apparently the cartels in Mexico specifically designed boxes to put cash in so that they would fit through the windows of HSBC teller windows.
Can Society or the Regulators forget or ignore the innocent Victims of HSBC in India

Is the Group Chairman of HSBC Mr Flint asking the whole world to forget, the illegal behaviour of HSBC Group around the world.

People judge a company for what it has done in the past , what HSBC has done in India and around the world for the last ten years has it been criminal behaviour?

Mr Flint you have not met the expectations of the people in India or the Regulators around the world.

HSBC did meet the expectation of overseas Banks with links to terrorist financing, HSBC did meet the expectation for Drug Cartel's wanting to launder drug money.and as far as contributing to the fulfilment of their aspirations and ambitions you did fulfil their ambitions of laundering money. Which HSBC did that for many years.

HSBC takes compliance with the law, wherever it operates, very seriously. I this just a very bad joke by HSBC?

In India HSBC has killed the aspirations and ambitions of so many people by falsely registering them with CIBIL, asking people to sign blank LOI's, demanding money illegally.


"By setting the highest standards of behaviour our aim is that all of our employees and customers can be proud of our business"
Stuart Gulliver,
HSBC Group Chief Executive
We ask is this Fact or Fiction or is it just LIES? The evidence can NEVER support the above statement by Mr Gulliver.

Can Society or the Regulators forget or ignore the innocent Victims of HSBC in India.


Michael Mason-Mahon
Mobile: 0044 7834763544
Mobile: 0044 7448770801
E-mail: [email protected]

"First they ignore you, then they ridicule you, then they fight you, and then you win."

arun

4 years ago

I am heading International Consumer Rights Protection Council (ICRPC). I receive hundreds of complaints from consumers across India who were cheated by banks by diverting consumer FDs to insurance plans. Many lost their amounts by not being able to pay premiums, as they were misguided by bank stating that their premium was one time only whereas it was yearly. The consumers were not able to pay the hefty yearly premium, which was in lakhs.

Another way the banks are cheating consumers is that while opening the bank accounts they offer lifetime FREE debit cards. But later they start charging. I had to fight for mine and finally I obtained a certificate from Chairman of ICICI Bank that my debit card is lifetime free as per my original account opening application terms which saifd it is life time free.

The biggest cheater of all is the ICICI Bank. If you watch closely, you will find that almost 95% of the Nigerian and Lottery frauds happen in ICICI accounts. This is the result of ICICI bank aggressive selling of their accounts where they compromised on security. They even visited MBA degree colleges to enroll students for free accounts and free credit cards.

One more common way of cheating by banks is that they give you less interest amount on your FD, whether it is quarterly, monthly or yearly. Just calculate and see whether you are receiving the correct interest amount. In my case, i confronted the Bank of Baroda recently when I found that the quarterly interest amount was lesser than what was quoted on the FD certificate. Why don't the banks write the monthly / daily interest amount also on the FD certificate instead of writing as percent, so that the consumer knows how much money he will get as interest. It is not possible for common man to do all calculations to know the interest amount from percentage calculation.

Banking Ombudsman should be scrapped as they are not doing their job properly. They are mostly either in favor of the bank or favor of dismissing the complaint. Hardly any consumer gets justice from Banking Ombudsman. I get many consumers who wish to file complaints in consumer courts after dissatisfaction from Banking or Insurance Ombudsman.

RBI is just a spectator....talks big but does not do anything.

I am happy that RBI is being confronted by Moneylife for their lapses.

Best regards,

Arun Saxena
President
International Consumer Rights Protection Council
http://www.consumergrievance.com
Cell: 9969828656

Parmod Sachdeva

4 years ago

If you make a Banker Sales Man of third party products many more Sharmas will be cheated in future also. In one of the columns you have rightly pointed out Banker as Bhayankers in their new avtar of seller of 3rd party products.

HG Sharma

4 years ago

You have inspirational approach Mr. Mangelal ,thank God you are not suffering in silence. We as a country,are silent sufferers . Since we are silent,we get isolated and the cheats get easy access everywhere.Companies may be big,small,ethical or unethical.govt or private , but the employees are over greedy,when approach a prey it hardly matters which company they represent .Moneylife is lending a solid platform for Financial sufferers of the country ,this will create awareness and save many many more from the cheats.Some time back, I wrote to Moneylife to know if there is any platform where PMS ( Portfolio Management Services )sufferers can alert fellow investors . I would like share my views / plight on PMS.Infact for last more than 3 years ,I just wanted to know ,if there is any one who got benefited by this service , my service provider ,gets into silky cocoon and says there are many but SEBI prohibits them from providing this info , whereas , in fact SEBI is for the protection of Investor's interest.Alone it is tiresome to fight them for a senior citizen , Mr Mangelal is an exception ,and so hats off to you Mr. Mangelal.

Gold & silver are in a crash mode. Will gold ETFs, sold aggressively, face redemptions now?

Gold and silver prices have crashed all over the world. This has confounded those who believed the endless allure of these metals, because pop-economists told them that global monetary easing is good for gold and silver. Indian savers will also be traumatised by the impact on gold loan companies and gold ETFs

On Friday it was a sharp drop. By Monday afternoon it has turned into an avalanche. Gold price crashed by as much by as 11.69% and silver prices by as much 6% on a single day on Monday, stunning those who have been led by pop-economists to believe that gold and silver prices are headed higher because of the endless injection of cash by the central banks. Gold collapsed to Rs26,250 per 10 grams on the MCX at its low today, to touch its lowest level in 15 months. The fall was 6% over Saturday’s close. Silver crashed by over 11% to Rs43,525 per kilogram on MCX. From a high of Rs27,925 on 13th April, gold has crashed by 11.7% and silver has slumped by as much as 17% from its high of Rs52,447 on 13th April. The daily charts of gold and silver show the extent of the rout. The intraday charts of the two metals show utter panic selling today.
 


What is going on? Gold has been always sought as an alternate investment option. And over the past few years the metal had touched new highs and stayed elevated. It is the only asset class in living memory that has gone up every year in the last decade. This was unsustainable.

 

The crash in the bullion market has come as a shock to investors who thought the metal as a hedge against inflation or even had the impression that gold prices would never fall, going by the rally the metal has witnessed in the last 12 years. The price of gold was substantially driven by speculation and now the sentiment for the metal has gone down, added with further rumours and speculation which has led to panic selling of the yellow metal.
 

Specifically about today’s panic selling, there were rumours that some central banks (Cyprus) were selling gold. The other explanation is that since the economic catastrophe that gold bugs have been expecting have not happened, there is no need to hold gold as a hedge.

 

What fuelled the decline in gold prices further was the Shanghai Gold Exchange announcing that following the tumbling precious metal prices and to limit down drop in early trading, it may raise trading margins for its gold and silver forward contracts. The exchange announced that should prices not recover by the end of the trading day (which they didn't), trading margins for the gold forward contract will be raised to 12%, while margins for the silver forward contract will be hiked to 15%, the exchange said in a statement on its website.

 

How will this affect Indian savers? Those who have held gold for use should not be perturbed. Those who have bought gold as an investment or speculation would now ask around about the ‘fundamentals’ of gold. Meanwhile, it is bad news for the two new products/businesses that came up in the up in the past few years riding on the enormous gold rally: gold loan companies sprouting and mutual funds selling gold exchange-traded funds (ETFs). Moneylife in the past has argued that the business model of gold loan companies is flawed. Not surprisingly, the shares prices of these companies have crashed even further. Mutual funds have pushed gold ETFs hard, exploiting the Indian belief that gold always goes up. They would be hard put to justify the severe underperformance of ETFs over the past two years.

User

COMMENTS

Steve

4 years ago

@Hemant

I only hope you are right about the deflation..especially in the real estate sector. Hope there will be a liquidity-crunch in Indian banks where banks won't trust each other, causing the credit markets to freeze....leveraged as much as they are at the moment.

Watch the below link to draw an anology as to what will happen when the markets freeze.

http://www.youtube.com/watch?v=quwebVjAE...

Builders will be desperate for cash at the time... so he who has cash will be the king. Stay liquid. Credit will be hard to come by.

A big portion of younger generations in bigger cities have been priced out of the market through this rampant manipulation of house prices by the real estate mafia in collusion with the banks and builders in the last 15 years. High time they should get a bit of "kashaya". It helps with digestion.

It is not out of the equation for cities like Bangalore to have massive deflation in house prices as IT is on the brink of collapse (read Infosys earnings). Most of the West went through the house price crisis. Dubai also did back in 2009 so why not Bombay, Delhi and Bangalore now?

Fingers crossed.

Empathize with the clueless sheep who have purchased overpriced houses so far...The proverbial albatross around the neck will only become unbearable at the time of unemployment.... Learn a bit of economics.

REPLY

Hemant

In Reply to Steve 4 years ago

see steve my worry is gold it rises to 8000 or 12000 dollors then all those hoarding cash are screwd.SO 80 20 rule works here 80 cash 20 gold.Coz the minute gold crosses 2000 dollors govts will panic .Will they allow deflation at that time.My answer is may be just to wash out these people momentum inflationists is YES.
Mkt moves in cycles and real assets are valuable.You need food and water before talking about gold silver real estate.gold has this power to Call the bluff of central bankers.will it rise orderly or will be chaotic is the question

Hemant

4 years ago

The problem here is momentum...there are 2 markets one the derivatives ...gold etfs can go to zero but gold physical can go thru the roof that is what is happening .SOvreign defualts is the real reason gold moves not inflation.India china also can defualt as modern day banking is a ponzi scheme based on fractional reserve banking.In india no one thinks DEFLATION in india is possible well see how that plays out

BHALACHANDRA SINGDE

4 years ago

Madness. Yesterday stocks of gold have exhausted in gold marts and they have started bookings now; with news that the gold price is going to dip down further!

YOGESH GAUTAM

4 years ago

Gold has move up very sharp (100%) in last 2 years. it is natural for gold to go for correction of 20 - 30 %.
gold has been down twice more than 25 % in 2008 & 2006 . see where is gold today.
gold will again come back & reach 40000 mark in next year.
gold is real money & paper money will only promised by governments. we all know how goverment keep their promises.

Digvijay

4 years ago

Its annoying that you have raise a valid question in your headline but not answered in your article.

BHALACHANDRA SINGDE

4 years ago

Late T.A.Pai, Cental Industry Minister, ex Chairman of Syndicate Bank, told me following. When he went to USA, he was taken to Fort Knox, the gold depository of that country. Gold bricks were lying everywhere glittering brightly. One officer asked him, "Have you got such Fort Knox in your country". He said, "There are millions such Forts in India since every woman and person including God in temples hold tons of gold which will be more than your Fort Knox deposits". India is called Suvarna Bhumi and even in the present crashed market you could have seen long queues in front of gold marts.

BHALACHANDRA SINGDE

4 years ago

Late T.A.Pai, Cental Industry Minister, ex Chairman of Syndicate Bank, told me following. When he went to USA, he was taken to Fort Knox, the gold depository of that country. Gold bricks were lying everywhere glittering brightly. One officer asked him, "Have you got such Fort Knox in your country". He said, "There are millions such Forts in India since every woman and person including God in temples hold tons of gold which will be more than your Fort Knox deposits". India is called Suvarna Bhumi and even in the present crashed market you could have seen long queues in front of gold marts

Dayananda Kamath k

4 years ago

it has to happen one day or the other.next in line will be education loans. the govt., rbi, banks are following a flawed policy and distroying the economy. for any financial scam and financial crisis the main reason is land prices. banks are giving loans for housing at 7% and to manufacturing @ 12% earlier.now nobody can eford moderate housing.

GOPAL

4 years ago

Buy low and sell high. But we consumers buy at high levels and keep burning our precious savings.

Nilesh Harishchandra Todarmal

4 years ago

What will be the impact on the investors who have started SIPs in Gold ETF with the long term horizon of 10-15 yrs?
Is the way of investing through SIP is right? So that gold price can be average out.

PRABHAT

4 years ago

GOLD PRICES WILL SHOOT UP . IT IS A TEMPORARY PHASE . THE BELIEF IS BECAUSE , IN 1975 , THE PRICES WERE ABOUT RS. 500/600 PER 10 GMS., WHICH HAS GONE BEYOND 30,000/-

Anshuk

4 years ago

Past 2 years? Your last statement is wrong. ETF has gone from 2100 to 2500 in the last 2 years (this is taking into account Monday's drop) that is still 9.1% CAGR..

Suiketu Shah

4 years ago

Excellent excellent article.

S BHASKARA NARAYANA

4 years ago

What is the fate of Gold loan portfolio of the public sector banks, who lent @2300 per 1 gram at its peak level?

REPLY

Dayananda Kamath k

In Reply to S BHASKARA NARAYANA 4 years ago

today all banks are copying each others business models and go down together.when the gold price are at the top they are advertising people to avail gold loan. which is a flawed decision of bankers. what was rbi doing. they even complimented gold loan companies for doing eomen service . and next day their share prices gone up. last month icici auctioned around 25 kg gold pledged for gold loan. now there may be more selling by other banks and god loan companies. then what will be the fate of these companies and banks. just like govt forcing banks to give loans and now npa s have increased they are directing them to ruthlessly recover. this is the standard of governance.

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