Country’s largest bank SBI has breached RBI’s credit exposure norms during three consecutive years with regard to its loans provided to Mukesh Ambani-led Reliance Industries Ltd (RIL).
This is the third straight year when SBI has exceeded the single-borrower ceiling with regard to RIL, as per the bank’s annual reports for the past three financial years.
However, the bank brought down its exposure to RIL within the limit on the last date of the previous fiscal, i.e March 31, 2011, according to the SBI annual report.
The public sector lender had provided credit in excess of prudential norms to RIL during 2009-10 and 2008-09 also.
During the year 2009-10, the bank’s credit exposure was in excess of prudential limits for Reliance Industries, Indian Oil Corp (IOC), BHEL and Tata Group.
As per RBI guidelines, the exposure ceiling limits are 15 per cent of capital funds in case of a single borrower. However, the credit exposure to a single borrower can go up to 20 per cent, if the additional 5 per cent exposure is on account of extension of credit to infrastructure projects. (via SBI breaches RBI norms on loans to Reliance – Times Of India).
Follow the leaders
Sense of priority
Points of view
- Indian banks: The pendulum swings again (economist.com)
Old boys club
Not quite. If not harmful, they are atleast pretty powerful.
In 1952, Eisenhower and Richard Nixon became the first CFR members to be elected President and Vice President of the USA.
Adlai Stevenson, the Democratic candidate beaten by Eisenhower and Nixon, was also a CFR member.
‘The Council was starting to dominate American politics at the highest levels,’ write Burnett and Games.
‘The pattern would be repeated four years later, with Stevenson again losing out to Eisenhower and Nixon.
‘Although Nixon was to narrowly lose the next election in 1960 against John F Kennedy, the charismatic Bostonian was another member of the CFR.
‘Nixon would return in 1968 to defeat fellow CFR member Hubert Humphrey, and win again in 1972 against George McGovern.
‘Although not a CFR member in 1972, McGovern saw the light and joined afterwards.’ (via Southern Times – Why Africa needs secret societies).
Red herrings – the challenge ahead
English language media at least, is dominated by a few news agencies like Reuters, Bloomberg, API, and AFP. These agencies in turn are fed by various think tanks and reserch organizations, which then dominate global debate. In the last few years, top 10 websites control 75% of the web traffic. Hollywood dominates the big screen.
For instance the highly flawed model of Transparency International promotes a narrative of corrupt Africa and Asia. To dominate the debate, censorship is not the only solution. It is not even a preferred solution.
More noise is equally effective.
Capture and exploit
After this kind of media capture, the West drives the narrative. And exploits this narrative. To get over the ‘problem’ of economic stagnation, the West has created artificial ‘crisis’ situations.
- Population Explosion
- Global Warming and climate change
- Civil Wars in Africa
- Islamic Demonization and the spectre of `Islamic terrorism
- Financial meltdowns
These are major diplomatic offensives using media, academia, events and situations, to
- Maintain superior negotiating positions
- Define the agenda – which usually means non-substantive issues.
But for an India to match the trade and tariff barriers, propaganda and diplomatic offensives, calls for more resources.
The manner of funding Indian NGOs by external sources, especially the West, is not benign anymore. More than 33 lakh NGOs operate in India, with foreign funding that is estimated at US$4 billion. This figure is double the official Government figure that is based on declared receipts, which reports say, are under-declared.
In times to come
Is the West aiming to capture these Indian ‘think-tanks’? The promotion of Western Climate Change agenda by Amartya Sen, under the auspices of the Aspen Institute India is indication of times to come.
Mechanics of माया maya?
- Kissinger on India-China War of 1962 (quicktake.wordpress.com)
- Was Nixon a Drug Warrior or a Reformer? (reason.com)
- Government complacent about level of UK corruption, claims campaign group (guardian.co.uk)
- Bad influences: JFK, Ike and Obama (salon.com)
- Libyan rebels “disappointed” by NATO airstrikes (salon.com)
- Will Jobs Numbers Sink Obama in 2012? (thedailybeast.com)
- Kissinger: China poses ‘big challenge’ for U.S. (cnn.com)
Governments and tobacco
Globally four major companies and government monopolies control a US$400 billion trade in cigarettes. These cigarette monopolies, directly or indirectly controlled by governments, take away US$1 from every US$175 that people earn. China and USA are leaders in this extortion game.
Tobacco – India Govt.’s ‘innovation’
The Indian State also, on a much smaller scale, replicates this same mechanism. Since Indians consume tobacco in a traditional, non-industrial manner, the Indian State changes the method of extortion. Apart from tobacco, the main ingredient of bidis, is tendu leaf. Tendu leaf is used to roll the tobacco in. While tobacco farmers are exempt from income tax, adivasis have to sell all their produce to the State. For which the State pays them wages. A newspaper reports
Over the last two decades, the graph of tendu patta wages has shot up. This year, the Chhattisgarh government raised the wage rate from 70 paise to 80 paise per bundle of 50 leaves. But collectors like Bargu earned higher wages (Rs 1.05 paise) courtesy the Maoists. As the parallel authority in large parts of Bastar, they fix wages and even a system of wage payment.
For instance, officially, the state government’s minor forest produce federation auctions each lot of tendu leaves. Traders or contractors pay a sale price to the federation. A portion is sent to the federation’s field managers, who are supposed to disburse it as wages to the adivasis. But, in reality, the managers simply hand the money back to the contractor, who adds an extra wage amount fixed by the Maoists and sends his own staff to pay off the collectors.
“In our areas, we bargain with the contractor every year, and get a higher price for the adivasis,” says Gudsa Usendi, Maoist spokesperson. ”Last year, it was Re 1. This year it’s between Re 1.05 to Re 1.20. This way, we have stopped the exploitation of adivasis.”
That’s not an empty boast — but it’s only partially true. The Maoists have wrangled higher wages for the adivasis and expanded their support base, but they have also obtained higher levies for themselves. Most traders refused to divulge exact amounts, some reluctantly offered a rough range: 5-10% of the sale price. For one Rs 1 crore, that works out to Rs 5-10 lakh.
“The market of tendu leaves is not less than Rs 2,000 crore,” says K Sadavijaya Kumar, of the Association of Beedi leaf traders. Given that at least a quarter of the tendu growing areas appears to be under Maoist control, the amount of levies could run into crores.
By maintaining a monopoly over the ownership and sale of leaves, the state earns revenue. In 2009, Chhattisgarh Minor Forest Produce Federation made Rs 256 crore from tendu leaves. Rs 189 crore was paid to the collectors, and Rs 66 crore retained by the federation. (via Tendu leaves little hope for tribals – The Times of India).
And the Maoist- Naxalites are fighting with the State for ‘exploitation-of-adivasis‘ rights. From being owners of India’s forests, under भारत-तंत्र Bharat-tantra, the adivasis have become wage earners. By this one single action, the State has impoverished crores of adivasis. Such are the reasons for Indian poverty – The Indian State.
- Bamboo is liberated, says Jairam Ramesh (hindu.com)
And the Maoist- Naxalites are fighting with the State for ‘exploitation-of-adivasis‘ rights.