Why UBI desrves a life line? Who will bear the cost? The NPAs are the creations of the management by resorting to reckless lending ignoring the very basic principles of lending VIz Safety, Liqidity and Profitability. These loans are abinitio NPAs with the full knowledge of the Board and rest of the management. The entire Board should be made accountable for their lapses and throwing to winds the principles of lending using depositors money raised at minimum cost. These loans in no time turn sticky and board after waiting for some time strongly recommend for write offs and finally written off. The loss is borne by the depositors, taxpayers, employees , good and disciplined borrowers and shareholders. This has to be brought to an end to improve the health of banks.
Dr.T.V.Gopalakrishnan
( This comment is given in Business line.dated 24/2/14).
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