suril desai

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    • Why the U.S. Credit Crunch Will Not Affect India [view article]
      The Finance Minister in March did announce a so called farm loan relief package of Rs 60,000 crore approximately US $ 15billion. Though the news papers and media reported it as a waiver for farmers, the amount was also used to "clean up" their balance sheets for loans given to retail and corporates as well.
      To say that the Indian banks did not have exposure to CDO's would in a sense be misleading. Its just that the banks in India due to political backlash have refused to report it as losses related to subprime.
      I find it hard to believe that in near absence of rural banking, the Indian farmers could borrow to the extent of $15billion. It does not make logical sense and why would the government couple it with losses to loans given in retail and corporate??? what percent of the national write off was for farmers could be anyones guess.
      Apr 28 03:15 AM
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