I actually think this is a very good step. When HDFC goes down or if it goes down, the key issue is not what happens to the shareholders but what happens to those whose money is with them.
HDFC a part of the deep state with HH the Aga Khan as founder to be followed by Citibank as largest shareholder – is a national systemic risk like no other in the history of independent India. It is currently run by a proxy CEO which is a horse with blinders whose reins are pulled and back is whipped by the Deepak Parekh – Renu Sud duo. We all understand sacrificial anodes and proxy control. From Rabri Devi to Dr Singh – one has seen most flavours. Shashi at HDFC is just a fall guy (hang him if something goes wrong) and Keki is just brand prostitution (put a parsi face to show all is clean)
HDFC controls close to Rs 90 lac crores of public funds. This is a horrendous amount. This is across public holdings in shares, deposits, bonds, debentures, mutual fund units, sip deposits, insurance deposits etc
It is not if but when disaster will strike. Now if you add their sister concern Axis Bank – the amount goes to stratospheric levels. A systemic risk the country cannot afford. A risk (it is not if but when the bank will fail) that will bring pensioners to penury, drive UPI to failure, export our money, collapse the real estate market bubble and obliterate the chances of India’s economy.
The regulators have their own considerations and drivers. Some in keeping with their charter. And some which are not as per their charter. For example since when did regulators start giving character certificates or certificates of appreciation on a sumo moto basis. I understand regulators don’t want banks to fail. And banks WILL fail if there is a panic and all depositors queue up to withdraw deposits.
So to that extent RBI and SEBI were right in saying all was well in HDFC. In fact sebi went to the unrequired and unprecedented extent of blaming Atanu for creating market confusion by resigning in response to my post “take ownership or give up ownership”. Since when did it become the mandate of regulators to silence, discredit and in fact chastise “whistle blowers”.
The Gramin Bank and microfinance scam is taking on untold proportions. Poor farmers are being lent money at 40% pa interest for loans secured by land and real estate. Whereas you can finance a Mercedes at 6.75%. MSME mfrs who generate jobs and substitute imports are being rooked by hdfc at 21% pa whereas real estate bubble flats in Gurgaon are being funded at 7%. It is a national crisis that is unprecedented in independent India.
And the root cause of this is three – deep state owns 94% of cibil, deep state controlled HDFC and Axis which are collecting public funds are an unheard of pace and funding the real estate bubble to exploit the need of average middle class Indians to get a roof above their heads, educate their children and provide basic health.
Scam is too soft a word to describe what is happening.
