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Topic : Crisis
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Banking & Insurance Professionals

 

Banking , finance and investment sector in crisis?

Created by : Leena Khade, Banc Assurance, Deutsche Bank  | 11 11 2011 10:06:02 +0000
Industry : Banking
Keywords : investment banking finance euro upgrading degrading
Activity:  393 views;  last activity : 11 20 2011 17:07:14 +0000

On one hand where Moody's downgraded the outlook on India's banking sector to 'negative' from 'stable' S&P said it is right according to international standards.

At this time every one has different views on the same subject and we have to decide on our own that what is right and what is wrong?

What is your opinion who is right Moody's downgrade or S&P upgrade?

 

  
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Top Argument
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The situation is bad indeed and ofcourse market is not stable. It is not surprising to get a downgrade.

"However, with all the gloom & doom, the global ratings firm has recognised that Indian banks' stable customer deposit base and their high level of government securities holdings provide banks with a resilient funding and liquidity profile that buffers them against any major shocks."
By Leena Khade, Banc Assurance, Deutsche Bank  11 11 2011 10:06:02 +0000
 
Top Argument
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Indian Banking Sector has seen many ups and downs, yet survived on its own. Nothing to worry about Indian Banking System.
By Suryanarayan Murthy, Asst Vice President (Corporate Finance), A Hydro Power Project  11 11 2011 11:38:34 +0000
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The writing has been on the wall for too long. On the one hand, the government sponsored schemes for the economically backward people is adding to the NPAs. And on the other, the largesse being given to the rich industrialists and businessmen (in the form of loans which are not recovered) is eating away the capital of the Indian Banks. Time to pull up the socks and say 'NO' to these bad practices.
By Raju V P, Senior Manager, an International Bank  | 11 16 2011 19:01:14 +0000
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moody's downgraded was not right and s&p has been convert it in upgrade so of course acc. to me s&p is right...
By prachijindal , Pursuing MBA in Aviation management, Banasthali university  | 11 12 2011 03:29:36 +0000
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Ya, there is crisis because the loan system is defaulting but after September 2011 the banks were became financially sound.
By pragati parihar, MBA/PGDM student, banasthali university,jaipur  | 11 11 2011 19:15:45 +0000
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ya, but we are still in a better position to survive in market.
By puneet , Manager Admin  | 11 11 2011 11:27:35 +0000
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hi everyone! i think it is excitement to say "the sector is in crisis". do we decide on the basis of rating alone? normally, rating agencies act after an incident. have they ever foretold any event? since they peruse enormous data, they are in a position to decide before hand. but, it is after U S meltdown, they downgraded, for instance, while the loan bubble could have given them an insight of what was happening in U S. likewise, the NPA position does not become bad overnight. the rating agencies need to have a pro active role.
By Ravichandar S, investment  | 11 20 2011 17:07:14 +0000
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S & P has differed with Moodys and says that the health of Indian Banks is good
By kanukurthy sudershanrao, Operations Manager, Andhra Bank  | 11 17 2011 02:42:47 +0000
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Upgrade, because there are factors besides the economic ones that are providing stability to this sector and that is the Indian way of life. Our way of life is not professional as in the west. We are humane and our approach is also rooted based on other social factors and systems. The banks are safe because of black money practiced here. If there was no black money we would have gone the west had gone way back in 2009. It is providing stability to our banks and ensuring no bubbles are created that would disrupt its essence.
By AMISH , Admin/Facilities Manager, VKVC  | 11 16 2011 08:13:54 +0000
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ya,i m totally agree with suryanarayan sir because Indian banking system is not agressive in nature only so it was survived at the time of crisis..So,there is not to worry about that.
By Suman Kumari, MBA/PGDM student, Banasthali University  | 11 16 2011 04:04:09 +0000
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Indian banking sector are grown with their own system and style of functioning. Most of the Indian banks are home grown which has involved systems and practices that suits Indian conditions. All these banks have done exceedingly well and have with stood many crisis. They were able to stand apart when the whole world banking system was falling apart. So I do not view this down grading as anything that can hamper our banking sector.
By Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd  | 11 15 2011 03:08:37 +0000
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The nature of Indian Banking system altogether different from that in western/ developed countries. The rating procedures of Moody's or S&P or such other agencies are bound to stick to the systems and procedures developed in western environment. The irony of western systems and procedures has been exposed during 2008 crisis. Still we are bound to accept that untill unless we develop our image which can strongly influence the world economy. The Indian Banks are considerably influenced by Govt. policies, agriculture based financing and certain social bindings which they are bearing quite efficiently. This is also the part of notional profitability which can not easily be monitised and can not be reflected in the data produced by the rating agencies. Thy have no consideration for notional social profitability while rating the Banks operating in India, particularly PSU Banks. In a nut shell the downgrading of Banks in India is ficticious and can be altered at any moment with the intervention of Government, qite easily. The PSU Banks in India are well strong and there is nothing to worry.
By SURENDRA TEWARI, Freelancer, Guru FinAdvisors  | 11 11 2011 20:03:59 +0000
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It is all a devious design of the capitalist west to belittle our growing prowess in international trade. With their own financial services industry in doldrums, the US is going all out to discredit growing economies. Yeah ! i hear about it being a democratic world and S&P / Moody's being independent bodies but dont forget the strong arm tactics of the US administration read as the IRS. They tried the same with China on the Yuan issue but had to backtrack horribly and they find India to be easy meat as we dont protest on any thing that the US does or says these days. Besides as it has been pointed out above, our banking system is strong enough to withstand any crisis, then who needs these ratings.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 11 11 2011 18:01:28 +0000
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The downgrading of indian companies or indian banks etc is not new, what happened to the banks in european and american areas where were these graders, why they could not foresee it.
By kanukurthy sudershanrao, Operations Manager, Andhra Bank  | 11 11 2011 13:22:35 +0000
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