Finance Minister has to reply

Rebate in Income Tax on Home Loan Interest, Home loan Instalment, Reduced rate of lending for Home loan upto 30 lacs



Why all benefits to those home seekers who are rich and who can afford repayment of loan worth Rs.30.00 lacs and also margin of 20% needed for loan. Naturally such person must have annual income of at least more than five to 8.00 lac to become eligible for finance of Rs.20.00 lac to Rs.30.000 lacs.



Why all types of rebates for such rich class people whereas poor who cannot afford repayment of loan of even Rs.2.00 lac are fully neglected. Obviously rebates are being allowed to win the hearts of real estate developers and home builders.



Why not government comes out with affordable housing project for poor and middle class person whose annual income is less than Rs.2.00 lacs. Government has large chunk of land under its control and by the disinvestment proceeds they can acquire land for building small houses at cheaper rates.



Similarly there is pressure for reduction in lending rate of interest and why not stress for recovery of bad loans which is rising in momentum every year and which has become a cancer for banking industry. Waiver of loan or compromise settlement with poor and middle class farmer is understandable. But why banks are forced to compromise with willful defaulting industrialists and traders.



Until there is culture of recovery supported by government of India, any bank cannot imagine of healthy lending. Bank is therefore forced to opt for parking surplus fund with RBI at 3.5%. After all if a bank goes bankrupt it is the government, which has to infuse capital for its survival. How many times will government provide ventilator to sick bank? Why not defaulters are treated as criminals excluding the case of natural calamity?



What is control of disproportionate increase in assets of top bank executives of various banks?



Has government any plan to verify the credentials and assets of GM of any bank before promoting him to ED or CMD?



There is provision for rural posting for all officers to be promoted to higher scale. Have you ever verified whether banks are using this rural provision for punishing those officers who do not flatter to their bosses?



Are all GM or DGM or AGM having rural exposure before his or her promotion?



Are banks giving promotion to honest officers or sidelining them as happens in other government departments?



What is the need of Interview marks in Promotion marks when bank has tested and attested the services of any officer for more than a decade or two or three. Don’t you agree that interview marks gives scope for manipulation and injudicious promotion to corrupt officers, which give rise to flattery culture?

Is there any remedy for officers who are unjustifiably rejected in promotion process?



Are banks showing real status of bad loans in their balance sheet?



Hiding of NPA or recovery of NPA-- which is getting importance in PSBs



Net NPA ratio of bank is being projected as less than 1% . Gross NPA ratio is little more. But the question is whether Gross amount of NPA has been increasing every year and whether the same is within control of individual banks, and whether they are capable to monitor bad assets and adequately capacitated to recover the bad loan from bad borrowers. Banks have been showing lesser NPA ratio by increasing total advances of the bank and not by positive recovery from existing bad loan accounts.





Are you happy with attractive balance sheets of the bank or you also doubt their correctness as happened in case of Satyam Computers which was awarded twice for best Corporate Governance and which company was rated high by best Credit Rating Agencies of the country.



Do you really believe that private banks are not better than PSBs so far as standard of customer service, sincerity of officer working in banks and health of banking assets are concerned? It is possible that CMD of Private banks do not oblige FM or Government of India or RBI governor by reducing lending rates whereas CMD of PSB compete among each other to become front runner in the good book of FM. I remember CMD of Indian bank was considered as the best for more than a decade and government came to senses only when fraud of amount of Rs.1200/ crore was detected.



It is desirable to find out as follows:

Total advances as on 31.03.2006 with number of borrower accounts
( it is assumed that finance made during last three years are standard )



Out of which total amount of NPA in how many accounts


Finance made in the year
Total Ac and Total amount
Out of which NPA a/c & Amt.

2001



2002



2003



2004



2005



2006








Out of which written off / sacrificed during the year 2006 –07 , 07-08 and 08-09.
Name off officers who sanctioned the loan in the beginning and who subsequently monitored and renewed the same. Then find out the list of those officers whose name appear in more than 100 or 50 or 10 (Benchmark fixed by government) bad accounts.
Whether the NPA account has been restructured and if yes why?