Thursday, August 22, 2013

Accounting fraud

RBI allowed banks not to make provisions for restructured loans for infrastructure loans. This along with tweaking in the bond loss accounting saved more than 1 Lakh crore loss in Indian banking industry this quarter alone

Apparently this is done to show(prop) up the bank balance sheets.

Shame on you guys. Why not removing the prudential accounting norms altogether?

3 comments :

  1. Didn't the US Fed do something similar to American banks? They also stalled some accounting reforms.

    Moral of the story: rules can be changed and they will be bent if necessary.

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  2. Source of your story ?

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  3. please read www.economictimes.com to know the news. Intrepretation is at your will.

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