Long only, value, medium-term horizon, contrarian Summary CEO is alleged to have indulged in impropriety. A series of transfers instead of just one; smells fishy. Investors should consider the increased risk profile before investing in this bank.
Most of the pending cases, in particular are the contribution of three Metropolitan Magistrates in the City of Chennai.
Almost the borrowers of entire Tamil Nadu have been prosecuted by these Magistrates without any botheration about their territorial jurisdiction.
On a perusal of such complaints, I find that, except mentioning of the words 'deceive', 'cheat', 'misappropriation' and 'criminal breach of trust', the prime element viz.
Thus, their sole object behind approaching the Magistrates is to procure an order so that they can extract through police the principal amount and whatever rate of interest they charge. Ravindra and others 7 Scalewhile considering the issue relating to loan transactions and levy of interest in such matters, due to conflict of opinion, a three-Judges Bench of the Hon'ble Apex Court referred the matter to the Constitution Bench on the following question: The Banking Regulation Act, empowers the Reserve Bank, on it being satisfied that it is necessary or expedient in the public interest or in the interest of depositors or banking policy so to do, to determine the policy in relation to advances to be followed by banking companies generally or by any banking company in particular and when the policy has been so determined it has a binding effect.
In particular, the Reserve Bank of India may give directions as to the rate of interest and other terms and conditions on which advances or other financial accommodation may be made.
Such directions are also binding on every banking company. Section A also empowers the Reserve Bank of India in the public interest or in the interest of banking policy or in the interests of depositors and so on to issue directions generally or in particular which shall be binding.
With effect from Section A has been inserted in the Act which takes away power of the court to reopen a transaction between a banking company and its debtor on the ground that the rate of interest charged is excessive. The provision has been given an overriding effect over the Usury Loans Act, and any other provincial law in force relating to indebtedness.
During the course of hearing it was brought to our notice that in view of several usury laws and debt relief laws in force in several States private moneylending has almost come to an end and needy borrowers by and large depend on banking institutions for financial facilities.
Several unhealthy practices having slowly penetrated into prevalence were pointed out. Banking is an organised institution and most of the banks press into service long-running documents wherein the borrowers fill in the blanks, at times without caring to read what has been provided therein, and bind themselves by the stipulations articulated by the best of legal brains.
Borrowers other than those belonging to the corporate sector, find themselves having unwittingly fallen into a trap and rendered themselves liable and obliged to pay interest the quantum whereof may at the end prove to be ruinous.
At times the interest charged and capitalised is manifold than the amount actually advanced. Rule of damdupat does not apply. Penal interest, service charges and other overheads are debited in the account of the borrower and capitalised of which debits the borrower may not even be aware.
If the practice of charging interest on quarterly rests is upheld and given a judicial recognition, unscrupulous banks may resort to charging interest even on monthly rests and capitalising the same. Statements of accounts supplied by banks to borrowers many a times do not contain particulars or details of debit entries and when written in hand are worse than medical prescriptions putting to test the eyes and wits of the borrowers.
Instances of unscrupulous, unfair and unhealthy dealings can be multiplied though they cannot be generalised. Suffice it to observe that such issues shall have to be left open to be adjudicated upon in appropriate cases as and when actually arising for decision and we cannot venture into laying down law on such issues as do not arise for determination before us.
However, we propose to place on record a few incidental observations, without which, we feel, our answer will not be complete and that we do as under: Penal interest cannot be capitalised.
It will be opposed to public policy. The Reserve Bank of India is the prime banking institution of the country entrusted with a supervisory role over banking and conferred with the authority of issuing binding directions, having statutory force, in the interest of the public in general and preventing banking affairs from deterioration and prejudice as also to secure the proper management of any banking company generally.
The Reserve Bank of India is one of the watchdogs of finance and economy of the nation. It is, and it ought to be, aware of all relevant factors, including credit conditions as prevailing, which would invite its policy decisions. It should continue to issue such directives. Its circulars shall bind those who fall within the net of such directives.
For such transaction which are not squarely governed by such circulars, the RBI directives may be treated as standards for the purpose of deciding whether the interest charged is excessive, usurious or opposed to public policy. A statement of account shall be filed in the court showing details and giving particulars of debit entries, and if debit entry relates to interest then setting out also the rate of, and the period for which, the interest has been charged.
In the present matters, it is ex facie apparent that, in spite of having weighed the nature of allegations in judicial scales and thereby knowing fully well that legally they are not supposed to refer the civil disputes for police investigation or take cognizance by themselves, the said Judicial Officers concerned, with ulterior motives and to oblige the demand of the Bankers, illegally imputed criminal flavour to civil disputes, which action is not only inappropriate, and as such legally untenable, but elicits their unwanted intention in aiding one party to intimidate the other party.
In the complaints taken on file, such break-up figures of principal and interest are not mentioned. Day in and day out, hundreds of such complaints have been entertained by some of the Magistrates and cognizance is taken.
Humanly, it is impossible if there is proper application of mind. Obviously, such cognizance is taken by the Magistrates on the mere request of the Bankers with an ulterior motive and in collusion and conspiracy with them. The other adverse impact of this illegal practice is mounting up of unnecessary cases and thereby the valuable time of the court is wasted and to the dismay of the legitimate litigants, their cases could not be taken up at right time in the usual course.
The Apex Court, in its umpteen number of judgements, has repeatedly cautioned the subordinate judiciary to stem the tide of the expanding use of criminal law in settlement of disputes which are basically of civil nature. That being so, in view of mixing the civil disputes with criminal offences, the aggrieved parties are increasingly invoking the inherent powers of the High Court under Section of the Code of Criminal Procedure to prevent abuse of the process of Court or otherwise to secure the ends of justice.
The illegal practice has made the Magistrate Courts breeding points of pendency of unnecessary criminal cases reflecting its adverse effect at all levels upto the Supreme Court.Below is an essay on "Icici Bank" from Anti Essays, your source for research papers, essays, and term paper examples.
ICICI Bank It is the second largest bank in India by assets and third largest by market capitalization. Project Report on Comparative Study of Icici Bank Nd Hdfc Bank.
Words Mar 20th, Electronic Fund Transfer h) Franking i) E Tax Payments j) Forex Operations 4) Suggestions and Recommendations 5) Conclusion 6) References Objectives The objectives of the project are: 1) To observe the various product and service offering under.
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The main focus of this study was to examine the level of job satisfaction of employees of the ICICI bank in their organizational context.
A convenient sample of employees at selected six branches of the ICICI bank in the state of Himachal Pradesh was used.
It comprised of eighty employees. A five point Likert Scale questionnaire containing . Scribd is the world's largest social reading and publishing site. CONCLUSIONS The study concludes to be valuable to ICICI bank and SBI as it is based on the opinion of customers and bank employees (marketing staff).