The editorial has an important message for banks (‘A stitch in banking time’, Business Line, December 27), borrowers and the RBI. Non-performing loans are created by bank boards, officials and borrowers. There are many ab initio
NPAs in banks as loans get sanctioned by the board without detailed
inquiries. The RBI approach can only help camouflage NPAs. The remedy is
to punish erring banks and borrowers.
T. V. Gopalakrishnan
1/1/2014.
(This letter has appeared in Business line today)
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