Audi: Correct assessment. IBN is in a nepotism trap. The trap works as follows.
You are a privileged person with Party contacts.You approach your contacts asking them to recommend you to the Banker for a king size loan against an Asset which you prize three times the market value. You get a friendly Broker to come up with a fake bid for the asset at 2.5 times the going rate for a small fee but you don't sell.
Your contact tells the Bank CEO/Manager about a fabulous investment and how the Bank will be rewarded for the Make in India awards but he should be discreet as the asset is worth even more.
The Bank grants the mega loan . The client defaults after a couple of payments and the Bank then realises it was taken for a ride.
Banks in the East have a lot of such loans which they doled out hoping to get a few National awards and jobs for their kin in return.
The current loan loss due to defaults is the worst in 11 years. t is not over, there is more to come.
This is a result of pandering to request of the Politicians to lend their benefactors large sums against inflated assets. They lure the CEO and Mangers into believing they are serving the nation and have been placed on the list for the nations highest awards on their National day in Jan.