Day Traders Lounge.

Joined
Apr 15, 2008
Messages
19,964
Likes
109,879
Location
On the internet
How safe is money in the banks? Which bank is going to fold when?
I have been studying balance sheets of few co-operative banks. They operate on huge leverage. Any of them can come in problem if few of their borrowers default. Having a FD with them is no more a risk free investment. They have insurance of Rs 1 L per depositor and all that is on paper. It takes years to get the money under this insurance.Even if one devides his FDs in 8-10 banks still per bank it comes to a sizable figure which is at risk at any time.

I know families who had deposits of 5-6 L in one co-operative bank, which is in trouble and last 5 years no withdrawl allowed and no interest which is very sad. They invested in bank FD with faith.

Smart_trade
 
Joined
Nov 3, 2010
Messages
27,248
Likes
48,163
Location
Idhar ich, aur kidhar?
How safe is money in the banks? Which bank is going to fold when?
I don't know about the private banks, but PSU banks are indemnified upto 70% by the Govt. of India. If SBI folds up tomorrow, the depositors will surely get upto 70% of their deposits back (after due time, I guess).

Only post office deposits are 100% indemnified by the government.
 

333

Active Member
Joined
Feb 2, 2016
Messages
237
Likes
216
I have been studying balance sheets of few co-operative banks. They operate on huge leverage. Any of them can come in problem if few of their borrowers default. Having a FD with them is no more a risk free investment. They have insurance of Rs 1 L per depositor and all that is on paper. It takes years to get the money under this insurance.Even if one devides his FDs in 8-10 banks still per bank it comes to a sizable figure which is at risk at any time.

I know families who had deposits of 5-6 L in one co-operative bank, which is in trouble and last 5 years no withdrawl allowed and no interest which is very sad. They invested in bank FD with faith.

Smart_trade
For FD ,I only trust SBI
 

DSM

Well-Known Member
Joined
Jan 20, 2013
Messages
4,334
Likes
12,831
Unfortunately the poor and the middle class take risk to earn extra 1% that co-op. banks offer, not realising the risk to capital. Many of the co-operative banks (with a few exceptions) are created or run by politicians or people with little credibility. There is also little thought on good governance. Huge sum are lent to promoters, their cronies and dubious business men in exchange for bribes..... But inspite of issues, these banks thrive. For e.g in Maharashtra, it is mandatory for co-op societies to have account with co-op banks. This way, thousands of crores of society funds are deposited with these dubious banks with political patronage..... And when over time when enough money has been siphoned off, it is the innocent people who suffer.... And we have to give credit to RBI for its stringent regulations which limit the scope for mischief. Else, there would be a greater mess to deal with....

I have been studying balance sheets of few co-operative banks. They operate on huge leverage. Any of them can come in problem if few of their borrowers default. Having a FD with them is no more a risk free investment. They have insurance of Rs 1 L per depositor and all that is on paper. It takes years to get the money under this insurance.Even if one devides his FDs in 8-10 banks still per bank it comes to a sizable figure which is at risk at any time.

I know families who had deposits of 5-6 L in one co-operative bank, which is in trouble and last 5 years no withdrawl allowed and no interest which is very sad. They invested in bank FD with faith.

Smart_trade
 

DSM

Well-Known Member
Joined
Jan 20, 2013
Messages
4,334
Likes
12,831
Really? Just over last three years over 1 lac crores has been written off by public sector banks as bad debts..... And it is the money of the Indian public - yours and mine included.

Where your hard earned money is concerned, it is always advisable to diversify risk. We cannot predict what can happen based on what has happened in the past.... That's why black swan events blindside everyone....


PSU banks wont go anywhere...Its too big of a political risk to do anything to those banks...
 

amitrandive

Well-Known Member
Joined
Jul 26, 2010
Messages
8,717
Likes
23,669


D. Prakash Rao lives in a slum cluster near Buxibazaar in Cuttack, Odisha. He runs a roadside tea stall here – the only source of income for his family of four.

In spite of his overwhelming responsibilities at home and the tea stall, Prakash finds time for the young school-going children in his locality. Between 9.30 and 10am in the morning, he distributes 50 litres of milk to all the school-going children in his locality. “How can a child learn in empty stomach?”.

This 58-year-old chaiwallah runs a school for 70 underprivileged children...


Read full story here

http://pilelo-ho.blogspot.in/2015/10/a-school-drop-out-opens-school-for.html
 

cinderblock

Well-Known Member
Joined
Dec 14, 2012
Messages
4,282
Likes
5,840
PSU banks wont go anywhere...Its too big of a political risk to do anything to those banks...
I agree with you. But there are other PSU banks and then there is SBI.

If safety is your primary concern - there is no reason to move away from SBI and maybe top 3 PSU banks (for reasons you mentioned).

In any case, bulk of your bank FD should be in SBI / HDFC / HDFC bank in that order.
 
Joined
Nov 3, 2010
Messages
27,248
Likes
48,163
Location
Idhar ich, aur kidhar?
Really? Just over last three years over 1 lac crores has been written off by public sector banks as bad debts.
aha.. but nothing written off as bad deposits :D
 
Joined
Nov 3, 2010
Messages
27,248
Likes
48,163
Location
Idhar ich, aur kidhar?
A superb piece of satire, just the headline is readworthy for a year :D


ICC World T20: Nagpur pitch turns anti-national, helps New Zealand spin out India
by Mar 16, 2016

On a night when India were expected to canter to an easy win, after their bowlers and fielders had restricted New Zealand to a paltry 126 in their opening encounter of the T-20 World Cup on Tuesday, the Nagpur strip betrayed the favourites, teaching them, as Brian Lara quipped on Twitter, a bitter lesson.



When you leave cobras on a pitch, they come back to bite you. It is a lesson the Indian team should have learnt in December 2015. Back then, when India played South Africa at Nagpur, the pitch started turning square from day one, giving India victory in three sweat-free days.

So pathetic was the pitch that in his report, ICC match referee Jeff Crowe had called it poor. But, the Indian team management, smug after the facile victory, refused to see the serpents in it.

"Which rule tells me that a ball can't turn on day one? Where does it tell me in the rulebook it can only swing and seam?” team director Ravi Shastri reacted to the criticism. Let's hope, Shastri then added, we get a similar pitch in Delhi (the venue of the next game against South Africa in that series).

]New Zealand bowler Nathan McCullum celebrates the wicket of India's batsman Shikhar Dhawan during the ICC T20 World Cup match played in Nagpur on Tuesday. PTI New Zealand bowler Nathan McCullum celebrates the wicket of India's batsman Shikhar Dhawan during the ICC T20 World Cup match played in Nagpur on Tuesday. PTI After the opening game of the premier T20I event, only a really brave team director would want a pitch similar to Nagpur's in the next game against Pakistan at the Eden Gardens.

The best pitches in our part of the cricketing world, especially during the dry weather, are those with a bit of grass that is later rolled in. On such tracks, the ball doesn't seam, swing or spin, making life easy for the kind of batsmen we have.

The Nagpur pitch, in contrast, was absolutely dry. It seemed cows from a nearby shelter had been left to graze on it for a fortnight before the match, leaving not a blade of grass behind. That it had 'spinner's paradise' written all over it was evident even to the New Zealand captain Kane Williamson, who, in a decision that looked silly at the beginning but turned out to be the sign of a pure genius, dumped two of his best fast bowlers - Trent Boult and Tim Southee - for two relatively unknown spinners.

By the time the Kiwi spinners came on to bowl, most of the Indian supporters were already half-way into their celebratory party, convinced that victory was just a formality after the Kiwis had been restricted to a benign total.

Alarm bells didn't ring when Shikhar Dhawan attempted a sweep, got hit on the pad and started running for a single, only to be stopped by the umpire's raised finger. But, it was to be the beginning of what is a rare sight in T20, especially on Indian pitches: A procession of batsmen. What we Indians call Tu-Chal-Main-Aaya syndrome.

Rohit Sharma danced out of the crease, got beaten by the flight, was stumped. Suresh Raina closed the face of the bat too early and lobbed the ball gently towards midwicket, a shot whose slightly different variations were to later claim Yuvraj Singh and Ravindra Jadeja.

And, when Virat Kohli tried to cut a ball that pitched on the off stump and spun almost a yard, taking the inevitable edge of the bat and landing in Luke Ronchi's gloves, the Nagpur crowd stopped chanting "Ganpati Bappa Morya".

MS Dhoni hung around for a while. But, by that time the ball was either landing on the middle stump and darting towards the first slip, or darting from outside the off-stump towards the leg slip. Those expecting a miracle from Dhoni would have been better off giving him option of spending 14 days in a samadhi - at least he could have taken courage from recent precedence. After hitting a six, when eight more of the sort were needed, he too perished.

For New Zealand, who began the game with a tribute to him, the victory was a sweet reminder of what Martin Crowe had achieved at the 1992 World Cup.

Back then, in the first match of the World Cup against favourites Australia, Crowe had dumped his fast bowlers - just like Williamson in Nagpur - to open the bowling attack with spinner Dipak Patel. His side went on to win the game, humbling co-hosts Australia, whose captain Allan Border called the loss a ''bolt from the blue".

Now that a similar bolt has struck the Men in Blue, they have got to be careful. Their next match is against the team that won the 1992 World Cup.

On any other occasion, playing Pakistan on a turning track would have been a comforting option for India. The way Mohammad Amir is bowling after his return from a five-year ban for spot-fixing, Ravi Shastri would have taken a dry, dusty track with both hands.

But, not after Nagpur. One more anti-national pitch - remember the 1996 semi-final at Eden Gardens against Sri Lanka? - and the Indian patriot's worst nightmare could just come true: India being knocked out in the opening round of a World Cup, in India, by Pakistan.
http://www.firstpost.com/sports/icc...ys-2677498.html?utm_source=FP_CAT_LATEST_NEWS
 

Broker Special Offers