The ponzi banks of India – 2

This is a follow up to the earlier post: The ponzi banks of India

A recent news article on ET screamed “Bad loans of state-run banks are Rs 1.43 lakh cr as of Sept“. Is that about $30 billion?

The bad news is that the number is seriously under-stated (as is the norm with all state run banks, which state what the State wants them to state!).

The black hole!

Here is SBI 2012 Financials – courtesy Money Control

Check out the last 3 rows. Do we see something about 600000 crores in CL? and 2L crores to be spent to collect it, assuming it can even be collected? That is just for SBI! Now, add other big Public Sector banks like PNB, BOB, SBM, etc and you begin to get closer to the real picture.

We don’t know where all that money went, but King Fisher took 2000 crores. Various IPL franchise teams took several thousand more. There were some industries run by the family members of top politicians that took some! So, I am sure it all adds up.

What is certain is that GOI (aka Tax Payers) will be “recapitalizing” these banks. SBI has already approached the government to raise about 1L crore! Compared to this, Big Ben positively looks like a miser with the printing press!

If that depresses you, you are welcome to watch the “King Fisher Calender Girl Hunt 2013”. SBI shareholders get a free pass!