NPAs are becoming like any other commodity in the market for purchase and sale. Banks in collusion with borrowers generate NPAs and sell them in market or write it off. Depositors bear the brunt along with tax payers. The loot is made easy and goes often unnoticed and unquestioned.The accounting system and accountants and auditors help to fudge the accounts and depositors and other stake holders have no way of knowing it and challenging it.More than Rs2 lakh Crores of rupees are identified as NPAs and unidentiified NPAs will be more than that.Since PSBs are not allowed to have a run because of the backing of the Government and the flow of funds both from depositors and the Government in the form of capital induction using tax payers money cannot be stopped by any means,this problem of NPAs will continue to plague the system unchallenged.The financial discipline expected of bankers and borrowers has been eluding for decades and the beneficiaries are politicians, borrowers with criminal back grounds, Board of directors of banks, their associates, auditors and accountants. Unless and Until a lasting solution to professionally contain NPAs on ethical lines and without any room for corruption and manipulation of accounts is introduced, the discipline will not come and the economy, depositors, good borrowers and the tax payers will bear the brunt of NPAS and the loot will go on.
Dr.T.V.Gopalakrishnan
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