RBI to Give 57, 128 Crores Dividend to Center

 

 The Central Bank of India , the Reserve Bank's board has approved the transfer of INR 57,128 Crores as surplus to the government for fiscal 2019-2020, in line with what the finance ministry had budgeted, but the payout will fall well short of what is needed to cover the massive fiscal gap caused due to Corona Pandemic resulting in dwindling tax collections.

Reserve Bank of India every year give the divided to Government of India and the amount varies from year to year depending upon the earning of RBI.

The RBI major source of income is OMO ( Open Market Operations )  through which is issues and purchases various bonds.

Following are the factors or source of RBI income explained in nutshell.

 India Domestic Earning

1.  A. Earnings from interest on holding of domestic securities for conducting OMOs 
2.  Interest on loans & advances to centre and state govts/banks & FIs
3. Discount/exchange /commission/ rent
   
   
   Other Foreign sources:
   1. Earnings from foreign currency assets 

Mutual Funds Add 5.6 Lakh New Accounts / Portfolio in July 2020

 The Mutual Fund Industry added over 5.6 Lakh investor accounts in July 2020 taking the total tally to 9.2 Crores.. Mostly on account of contribution from debt schemes in comparison the Mutual Fund industry has added 5 Lakh new folios in June 2020.

According to the data released form AMFI ( Association to Mutual Funds in India ), the number of folios with 45 fund houses rose to 9,21,05,737 at the end of last month from 9,15,42,092 at June end registering a gain of 5.63 Lakhs folio last month of which more than 4.5 Lakhs were added in debt funds.

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Our Analysis

The high growth in folio or number of accounts , should not be seen as new fresh investors have joined its only the existing ones who invest through brokers in regular Mutual Funds inspite of having their existing folio in a Fund House for brokerage purpose the advisors / agents put in their own code resulting in generation of new folio of the same investors.

The real data would be to give the number of new additions based on the PAN Number ( Permanent Account Number ) of a person we may see the figure as stated above fall down to One Lakh only.

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You can post your comments and queries in the comments section we will be happy to reply to our queries.

Again Alleged Fraud by Top Private Banks for Loans

 

Two of the country top new generation private sector banks Axis Bank and Kotak Mahindra Bank have complaint of alleged fraud to the tune of INR 1200 Crores against travel and leisure company Cox & Kings Limited.

The investigation has been started by Economic Offense Wing of Mumbai City Police but officials of the travel firm say that its an routine inquiry.

The preliminary enquiry was already registered against the company on the basis of complaint from a third bank that is Indusind Bank which has alleged a default in payment of INR 239 Crores.

Now Kotak Bank in its complaint, stated that it has been extending financial faciliteis to the travel fir since 2012, and on June 24 , 2019 outstanding amount stood at INR 175 Crores.

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After default Bank appointed PWC ( Price-Water-House-Coopers ) to do a forensic audit. Its two draft report and mentioned irregularities and fraudulent practices of some of oice beares of the travel company.

The first draft interim report also said that there was receivable of INR 450 Crores from 15 parties and all these transactions were suspicious in nature and that the bank had all reason to believe they were fictitious. These 15 parties had common and on teh same day in the travel firm's system in August 2012, the police said. ON a visit to the addresses, it was found that the parties were not located there. Kotak Mahindra Bank said it has incurred a loss of 175 Crores.

As for Axis Bank it submitted a complaint that some office-bearers of the travel firm and its sister concerns had availed loan facilities to the tune of INR 1030 Crores and cheated the bank by not repaying. In both cases, FIRs are yet to be registered.

The the investigation & probe is being supervised by chief of EOW Mr Rajvardhan Sindha, and headed by inspector Kishore Parad who led the Punjab & Maharashtra Bank,s Rs 4700 Crores con probe.

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Our Analysis and Questions :

1. Why every time if any NPA happens then bank declare the NPA account as fraud.

2. It was more prevalent with Public Sector Banks in India now we are seeing Private Banks also following the same footstep. Can it be the end of dream run for Private Banks by charging higher interest on riskier assets.

3. Why not during the annual assessment bank could not see the amount was going into bogous / shell companies ?

4. What was banks Internal and External auditors doing with their inspection of the said loan ?

5. In all we can say that , if borrowers not giving back the loan then make them as fraud. The story is same with both Public Sector banks and Private sector banks as they banks do not want to take blame on their top management for NPA of the accounts .

6. Your comments & discussions are awaited.