There is a demand from the banking community to exempt them from maintaining cash reserve ratio (CRR) and statutory liquidity ratio (SLR) on funds raised to finance infra-loans. CRR is the minimum amount of funds which banks have to keep with RBI and SLR is the minimum amount of funds which banks have to invest in government securities. Exempting a bank from maintaining CRR and SLR would mean that they have more money to lend to infrastructure companies. This is trap devised by PSU Banks, for mutual benefit in collaboration with the greedy and dishonest India Inc. History shows that only a small fraction of the bank finance goes to the intended application. The rest is applied for creating asset-bubbles of passive assets and ultimately adds to the personal wealth of the industrialist and businessman (and in due course adds to the NPAs of the banks). The bank management and its bosses in politics are rewarded handsomely by the industrialists and businessman for casting this entire web.
Posted on: Sun, 13 Jul 2014 02:47:08 +0000
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