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Yes Bank Fiasco: Trouble in Financial Market is Contagious With Risks Spread Far and Wide
Shimla-For a few years now, the Indian financial sector doesn’t make good reading. It all started with the constant increase in the NPA (non-performing assets), that stressed the balance sheets of the banks. As a result, several banks were put on Preventive corrective measures by the RBI. Soon the NBFC’s (shadow banks) were also in trouble, as for them liquidity became an issue.
ILFA(Infrastructure leasing Financial Services) became the first causality, soon India Bulls, HDIL(Housing Development and Infrastructure Ltd.) and DHFL(Dewan Housing Finance Corporation Ltd) followed. Now trouble has reached the securities market: Franklin Templeton Mutual Funds closed six of its funds worth Rs 25000 crores a few days back. Moreover, there is no clarity, as yet, when, and how much money investors will get back.
We should have realized two things: trouble in the financial market is contagious and in the financial market, risks are spread far and wide.
But before we could do so, first PMC (Punjab & Maharashtra Co-operative) bank collapsed soon after Yes bank– India’s 4th largest Private bank- also tumbled. For PMC bank it was a case of putting its all eggs in one basket: 75 % of the PMC bank loans were given to HDIL; one the other hand, Yes Bank went on reckless loaning spree to the big corporates like Anil Ambani group, Vodafone, IL&FS, DHFL, Essel Group. When the borrowers defaulted the payments, the bank took to creative accounting to hide its bad loans.
Initially, both these banks have been put under moratorium by the RBI; Yes bank soon come out of moratorium as the 8 Financial institutions- lead by State Bank of India-invested Rs 12,550 Crore in the capital to bail out the bank.
As a cleanup task, Yes Bank declared the result for the period October to December 2019 last week. Its bad loans stood at a staggering Rs 40709 crore, out of these whopping Rs.39501 crores (97%) is due from large and mid-size corporates.
The Gross NPA stood at 19%, whereas the net NPA was at 6%. The additional tier-1 bonds worth Rs.8415 crores issued by the bank would also be fully written down as per the Basel norms, Yes bank informed in a separate disclose.
These figures reflect the precarious situation Yes Bank is in. And it will be a challenge of enormous proportion- in spite having found the investors for a bailout- for the bank to restore the faith of its customers. Post moratorium Yes Bank could face a massive outflow of deposits -after all, the baking business has its foundation on trust.
The fiasco puts the entire financial sector in the dock. Also, this underpins the various issues like governance, compliance, auditing, quid pro quo plaguing our financial sector. Questions should also be asked of the regulator too, whether they could have read the writing on the wall much earlier, and acted accordingly. Also, such incidents put a big question mark on the regulatory mechanism in place. But in the case of Yes Bank many knew all was not well for the last few years-timely intervention of the regulator could have made the difference.
Once again, the theory that private sector banks are immune to banking irregularities been thrown out of the window. In fact, after this incident, the misgivings about the modus operandi of the private banks are under a serious cloud, considering the impact it has on the entire market.
COVID-19 pandemic forced the Government to enforce nationwide lockdown which completely strangled the economic activities, forcing millions out of jobs and stymied the income levels. As per reports, Systemic Invest Plan (SIP) subscription has declined up to 70 percent in the month of March. And for the first time in FY20, closure of SIP has crossed 6,00,000 mark. The closure request of SIPs is like to go up, given the impact of COVID-19, economic slowdown and salary cuts. As the majority of the SIPs funds are linked to salaries, going forward, other Mutual Funds will be under immense pressure, considering that salary cuts will lower the saving capacity of the salaried class.
In the coming days, we could see a further spike in the default of the corporate and retails loans. Although, RBI has deluged the market with liquidity, demand for credit will remain lukewarm considering the present economic scenario. Hence, banks may be left with no choice but to park funds with RBI under reverse report.
The battle for the revival of Yes bank had just begun, in the coming days it seems, we will have to fight for the & resurrection of the entire financial market. However, at the moment, we have more questions than answers. Only time will tell whether we get enough answers to restore our faith and trust in financial sectors.
Amid these challenges, the environment of uncertainty, askance in the financial markets connotes further trouble. A pensive mood in the society is not a harbinger for financial markets. The response of the regulators in the coming months will be interesting to see-will they conform to paroxysms of populism or bite the bullet and embrace pragmatism. We will see soon.
HW Community
Himachal’s LPG Supply Hit Amid Global Tensions, Likely to Affect Hospitality Industry
Shimla—A quiet but worrying crisis is unfolding in Himachal Pradesh. Across several districts, traders, hoteliers, and restaurant owners are reporting a sharp shortage of commercial LPG cylinders, leaving many establishments with barely a few days’ supply. In a state where tourism drives the local economy, disruptions in cooking fuel supply can quickly escalate into a wider economic concern.
Local reports indicate the shortage is already affecting hospitality businesses. Traders in Shimla have warned that commercial gas stocks may last only a couple of days if fresh deliveries do not arrive soon, according to a report by Amar Ujala. Restaurant owners have echoed similar concerns in Solan and nearby tourist towns, where businesses fear that kitchens may soon struggle to operate without regular supplies, as reported by Dainik Jagran.
At first glance, the shortage appears to be a regional supply bottleneck. In reality, the problem is tied to wider disruptions in global energy markets triggered by the ongoing tensions in West Asia.
Tourism economy vulnerable to fuel disruption
Himachal Pradesh’s tourism sector relies heavily on thousands of small and medium establishments—restaurants, cafés, dhabas, and hotels. Unlike large metropolitan areas where piped natural gas networks are expanding, most commercial kitchens in the hill state still depend almost entirely on LPG cylinders.
This dependence makes the sector particularly vulnerable. Even short supply disruptions can force restaurants to reduce operations, limit menus, or temporarily shut down.
Industry bodies across India have already sounded the alarm. Restaurant operators have warned that continued supply disruptions could lead to closures across the sector. For a tourism-driven state like Himachal Pradesh, such disruptions can ripple through the wider economy.
The global trigger: instability in West Asia
The roots of the crisis lie thousands of kilometers away. The conflict involving the United States and Iran has begun affecting energy markets and shipping routes in the Gulf region.
A key concern is the Strait of Hormuz, one of the world’s most important energy corridors through which a large share of global oil and LPG shipments pass. India’s dependence on this route is substantial. Energy analysts estimate that a majority of India’s LPG imports originate from Gulf countries and move through this narrow maritime passage, as noted in a report by The New Indian Express.
Any instability in the region immediately affects supply chains. Shipping risks rise, insurance premiums increase, and cargo movement slows. These pressures eventually filter down to domestic markets.
Recent reports have also linked rising LPG prices and supply concerns to the Middle East crisis, with consumers expressing worry about the impact of the conflict on cooking gas costs, according to ANI News.
Domestic prioritisation, commercial shortage
When supplies tighten, governments typically prioritise household consumption. Domestic LPG cylinders are considered essential for daily cooking, and maintaining their availability becomes a policy priority.
However, this often leaves commercial users facing reduced allocations. Restaurants and hotels depend almost entirely on commercial cylinders, which are distributed through a separate supply channel.
In response to the emerging supply concerns, the government has reportedly taken steps to ensure adequate domestic availability of LPG, including directing refiners to increase production and manage distribution more closely, as reported by The Economic Times.
While such measures protect households, they can intensify shortages for commercial establishments.
Geography amplifies the problem
Himachal Pradesh faces additional logistical challenges. LPG cylinders used in the state are largely transported from bottling plants located outside its borders. Moving these supplies across mountainous terrain involves long supply chains and limited transport routes.
When upstream deliveries slow down—whether at ports, refineries, or bottling plants—the impact reaches hill towns more quickly and more sharply.
At the same time, alternatives remain limited. Large-scale piped gas networks are rare in the state, and many commercial kitchens lack the electrical capacity required for high-energy cooking equipment.
A warning for energy resilience
The emerging LPG shortage in Himachal Pradesh is more than a temporary supply issue. It highlights a deeper vulnerability in India’s energy system—heavy dependence on imported fuel and fragile supply chains exposed to geopolitical shocks.
For a café owner in Shimla or a hotel operator in Manali, the geopolitics of West Asia may seem distant. Yet the current situation demonstrates how closely global energy flows are tied to local economies.
A disruption in the Persian Gulf can slow tanker shipments, delay fuel supplies at Indian ports, disrupt distribution networks—and ultimately affect the availability of cooking gas in a Himalayan kitchen.
As the situation evolves, the hope in Himachal Pradesh is that supply lines stabilise quickly. But the episode offers a clear lesson: in an interconnected world, even the quiet kitchens of the mountains are not insulated from global conflict.
HW Community
Mandi’s Monsoon Tragedy and the Cost of Ignored Warnings
Mandi|July 11, 2025 — In the lap of the Himalayas, nestled among deodar forests and flowing streams, the district of Mandi has long stood as a symbol of Himachal’s tranquil beauty. But in the monsoon of 2025, that tranquillity was shattered — not by nature alone, but by a deadly combination of climate extremes, administrative apathy, and long-ignored warnings.
This year’s monsoon came not as a nurturing rain, but as a devastating deluge. What began in late June as a forecasted spell of heavy rainfall turned into one of the deadliest natural disasters in recent memory for Himachal Pradesh. And no place bore the brunt quite like Mandi.
The Collapse of Safety
Between June 20 and July 10, the state witnessed 91 rain-related deaths, out of which 17 occurred in Mandi district alone, making it the hardest-hit region according to the State Disaster Management Authority. More than 750 homes were completely destroyed, and another 880 partially damaged, while 10 bridges, multiple roads, and entire stretches of power and water infrastructure were washed away. In just 21 days, the estimated damage statewide crossed ₹750 crore.
The primary culprits? Landslides, cloudbursts, and flash floods — many of which occurred in the dead of night, catching villagers off guard.
In Siyathi village, 67 lives were saved not by sirens or warning systems, but by a dog’s bark. A resident, Narendra, told media:
“It was midnight. We were sleeping. Suddenly the dog began barking non-stop. We ran out. Within minutes, the entire hillside collapsed and our homes were buried.”
The dog, unnamed but hailed as a hero, became a symbol of what worked in a place where institutional response did not.
A Night of Heroes in Deji Village
In nearby Deji, two college students — Ronid Pundir and Sahil Thakur — from Thunag Horticulture College became real-life saviours. When a sudden cloudburst triggered a flash flood in the dead of night, the duo ran from house to house, waking families and helping them escape. Their actions helped evacuate over 150 people.
“We didn’t think twice. We just saw the water rising and started pulling people out,” Ronid told the media.
Despite such moments of courage, the tragedy left deep scars. In many parts of Seraj, Karsog, and Sundernagar subdivisions, residents reported that local authorities failed to respond in time. Emergency shelters were ill-equipped. In remote hamlets, stranded families waited hours, sometimes days, for rescue.

A Failure of Planning, Not Just Weather
Himachal’s vulnerability to extreme weather is well known. Yet critics argue that poor land use planning, unregulated construction near rivers, and unsafe road-cutting practices have greatly magnified the disaster’s impact.
Geologists and environmentalists have warned for years that road expansion projects and large-scale deforestation in hill regions have weakened slope stability. In many places, construction has occurred dangerously close to water channels, despite repeated advisories.
This time, the warnings played out in real-time — with mud, stone, and entire homes tumbling into ravines.
Government Response: Promises and Limitations
Chief Minister Sukhvinder Singh Sukhu visited the worst-affected villages, including Baga, Syanj, and Panglyur, personally distributing relief materials and speaking with the victims.
“No family should feel alone. The state stands with you,” he said during a relief camp visit.
The state government announced ₹7 lakh in compensation per fully destroyed house, and temporary shelters for displaced families. In contrast, the central government’s compensation — capped at ₹1.3 lakh — has drawn criticism from state ministers and the public alike.
Revenue Minister Jagat Singh Negi remarked:
“What we’re getting from the Centre is insufficient. Our people are suffering. We need stronger, faster support.”
A Glimpse into the Future
Perhaps the most chilling aspect of this disaster is that it may be only the beginning. Scientists warn that climate change is accelerating the frequency and intensity of such events in the Himalayas. Increased temperatures are destabilizing glaciers. Erratic rainfall patterns are overwhelming natural drainage systems.
Experts now call for a complete reassessment of infrastructure policy in Himachal — including bans on construction near rivers, better slope-stabilization in road projects, and improved early warning systems for landslides and flash floods.
“What’s happening is not natural anymore,” said a climate scientist from IIT Mandi. “It’s a man-made disaster wrapped in nature’s disguise.”
Beyond Numbers: The Lives Left Behind
In the hills of Mandi, statistics cannot capture the grief. Each day, as clouds gather, a quiet anxiety grips the village once more.
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War Is Not a Spectacle, Soldiers Are Not Content, and Journalism is Not War-Mongering
Shimla– In times of conflict, journalism must rise to its noblest purpose: truth, accountability, and responsibility. And yet, as India and Pakistan faced off once again across borders—bullets flying, lives lost, families shattered—a section of the Indian media turned tragedy into theatre.
From the moment reports of cross-border attacks surfaced, several primetime news anchors transformed their studios into shrill war rooms. Not to inform, but to inflame. Graphic war music, animated explosions, ticker tapes screaming “BREAKING”—the spectacle began. As soldiers bled on the border, TV screens bled hyperbole.
The most damning criticism did not come from adversaries but from global media observers. The BBC described Indian news channels’ coverage as “jingoistic and unhinged”. Al Jazeera and The Guardian echoed similar sentiments, noting how unverified reports, doctored videos, and belligerent studio debates replaced sober reportage.
Anchors, who had never seen a trench or a frontline, banged desks demanding military action. Unconfirmed reports were aired without attribution. Words like “annihilation,” “revenge,” and “surgical strike 2.0” were thrown around with theatrical bravado. There was no time to pause for facts. There was no room for nuance. There was only TRP.
The absurdity reached its peak when a few channels aired animations of fighter jets with triumphant music. Meanwhile, real families were burying their dead – soldiers and civilians alike.
In this chaos, journalism died a quiet death.
Media as Vultures
The metaphor is tragically apt. These channels, masquerading as patriots, behaved like vultures—circling the battlefield, feeding off the dead for ratings. Their hunger wasn’t for truth, but for viewership. They amplified hatred, dismissed dissent, and turned war into primetime entertainment.
And in doing so, they embarrassed India, not just at home but before the world.
The Cost of Sensationalism
When media loses its spine, democracy loses its mirror. The consequence is not just embarrassment—it’s danger. Misinformation in wartime can escalate conflict, trigger communal unrest, and mislead policymakers. A responsible media can cool tensions. An irresponsible one can fan the flames.
We must ask: Where is the human cost of war—the widows, the orphans, the destroyed homes? Where is the perspective from peace-builders, historians, and diplomats? Journalism is not supposed to echo government talking points—it is supposed to hold power to account, especially in wartime.
What Needs to Change
The Press Council of India, the News Broadcasting & Digital Standards Authority (NBDSA), and civil society must take stronger action against media outlets that violate ethical standards. Viewers too must switch off noise in favor of news. The Indian media must remember that its loyalty is to truth—not to war, not to government, and certainly not to TRP.
War is not a spectacle. Soldiers are not content. And journalism is not war-mongering.
It is time Indian newsrooms return to their core duty: informing citizens with accuracy, dignity, and humanity.




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