Tuesday, December 27, 2011

Banks and NPA Levels

Now again the corporate mafia and parasites are active and pitching for a CRR cut.

Even though Subbarao handled them beautifully last time, this time he may not be able to do that. But in my opinion a CRR cut of 50 points would not help the Indian Inc as the credit offtake itself reduces. Also no banker in right mind would throw good money on bad businesses.

 Also another possibility is that by relaxing the monetary policy, RBI may open the floodgates for inflation again.

Latest reports suggests that the bad loans are in increase in many banks. Now bankers are waiting for others to show their dirt before showing the dirt themselves.

See below an article which shows banks exposure to the f****d up sector Real Estate.


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