Economic Times Story on 23.11.12 : 30 applicants in race for post of Irda chairman
Comments of MILAN K SINHA (PATNA)
23 Nov, 2012 11:46 PM
Comments of MILAN K SINHA (PATNA)
23 Nov, 2012 11:46 PM
The selection of IRDA chairman is going to be an important news in the financial market for several reasons. According to a report, India is expected to emerge as the 3rd largest life insurance market in the world by 2015, only after China and Japan. At present, India stands 12th among the top markets for life insurance. With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.Further, only 20% of the total insurable population of India is covered under various life insurance schemes with a penetration level of 4.5% of GDP. The penetration rates of health and other non-life insurances in India is also fairly low.These facts do indicate that there is immense scope for growth in insurance sector. With cabinet decision to hike FDI cap in Insurance sector for greater participation of foreign players in coming days, it is all the more necessary to select a person as IRDA chief with highest integrity & professional skills/expertise so that he can provide genuine leadership, guidance and support to Insurance players, both new and old, in Indian insurance market. But, to ensure that to happen in a transparent and professional manner, it is desirable to have the most competent selection committee comprising wellknown & renowned professionals from insurance & other financial sectors and not the bureaucrats(In general, they are Jack of all trades but master of none) from the ministries.
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Economic Times Story on 22.11.12 : Bad loans of state-run banks are Rs 1.43 lakh crore as of September
Comments of MILAN K SINHA (PATNA)
22 Nov, 2012 11:58 PM
Yesterday RBI Deputy Governor K C Chakrabarty reported to have hold the corporate squarely responsible for a major part of the rising bad loans. By saying this, he has, in turn accepted that the whole system of credit dispensation, follow up, monitoring & recovery by the Banks in the country under the leadership & guidance of RBI & Ministry of Finance failed to perform & deliver. There can't be a more simplistic explanation on the menace of ever growing NPA of Banks like this. In fact, bad loans in our Banking system is mainly the result of multiple political as well as economic factors coupled with inability of the authorities to recover the dues quickly from the defaulters, especially big wilful defaulters. In a recent communication RBI itself said that Banks in the country need to strengthen their due diligence and credit appraisal system along with overall monitoring mechanism to contain the rising bad assets seen in the banking system. Notwithstanding, during the last two quarters in the current fiscal Banks have registered whopping 86% increase in non performing loans which impacted the pricing of its products, both deposits as well as credit. So, the need of the hour is to introspect & analyse the malaise very objectively and find and adopt more effective mechanism to manage NPA on an on going basis without fear or favour.
Will meet again with Open Mind. All the Best.
SARFAESI Act has been less effective these days and advocates are engaged in delaying by searching lacunae in the act.Limitation Act was introduced to save the borrowers from the clutches of private money lenders but in many cases of bank loans borrowers exploit the banks regarding renewal documents.cheaters are active to get loans from banks and to escape.If people honestly utilise bank loans,banks can do best to society.
ReplyDeleteLot of thanks for sharing your point of view. All the Best.
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