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Showing posts from February 4, 2018


RBI Governor and Deputy Governor say increase in NPA may be because of entrepreneurs fault or banks negligence or external factor.

In Telangana from 2008 to 2014, there was severe power cut and because of bifurcation agitation, we had more non-working days than working days.

Some units with thinner equity had no reliance power and stamina.No other financial instruments being available except debt (both from boxes and PVT) has eroded they are staying power.

All India forums for small and medium enterprise have raised their voice but banks have their own agenda to pursue SARFAESI and recovery without hearing the plight of the same unit.

RBI, time to time have given policy corrections but it does not read the operation levels i.e; chief manager of branch or field officer.

For a 5000 crore NPA in MSME sector involving some 10 to 12 lakhs accounts, but employer 1 to 2 crore jobs are treated very badly.

Time has come to revolt against the existing system of NPA classification in the manufa…


Mr.S.A Raghu(Independent Consultant)has written in BUSINESS LINE on 18/04/2016 that 99% of loan accounts are in MSMe, Retail and Home loan.But amount wise it is 4 to 5% total advances that are aprx. 6000 to 8000cr.This is very small compared to one large corporate loan.The loans were given by directions by Govt. of India, and RBI for social welfare and upliftment of society.Also employment.On 16/04/2016, another article in BUSINESS LINE, says 1.8 lac court cases are a field for the loan amount of 1.2 lac cr.RBI time to time comes out with various guidelines/directives but the same is not followed by bank branch managers and they are either arrogant/negligent.As there is no personal penalty for non.performance, Branch managers and credit officers take things very lightly.But this creates social disorder as entrepreneur family is first causality and employment is second big causality.
I request all to react and give their opinion and if you like, you may share with your friends for opi…

Budget and MSME-2018- 2019

Lot of good news are coming from this budget and FM has announced
more details, more particularly for NPA resolutions shortly.
I hope the policy should take care of 1 Cr jobs in Sick MSME
I am not demanding to write offs for sick MSME but strict
actions/implementations of existing RBI guidelines in its spirit and well
defined penalties to those bank officers who are not following timelines
as per RBI policies/directions.
If govt wants, a lot of things can be done without fiscal

Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Avoid being another Vijay Mallya

Lot can be learned from above EpisodeUnderstand your balance sheet and do not over-leverage then beyond a point.(I hope you understand leveraging the finance).Understand value brand and nature it to be a value creator.Stick to your core competency and make your strategy around the same.Keep your lenders/suppliers in good humour and develop good repo.Only invest long-term funds for other use, means do not withdraw longterm funds from business,and work out longterm plan.Stabilize the business and check the parameters on risk profiles regularly.

Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.