NOn Performing Administration and NPAs

If NPAs refer to non performing administration who is responsible for this?Is not the banks Board accountable for such a very serious lapse which has adverse implications on the economy and its stakeholders particularly the tax payers,share holders of banks and depositors of banks.Generation of NPAs has become the order of the day as both borrowers and banks do not want to be disciplined.The regulator also keeps mum ignoring the the much needed health of the banking system.Unless and until  a self corrective mechanism is introduced to discipline the banks and the borrowers through some workable statistical model, the formation of NPAs, write off of loans and all other consequential expenses like legal charges, maintenance of NPAs in banks books, safeguarding of securities will have to be borne by the innocent  tax payers who have not borrowed a single penny from any bank, depositors, employees and shareholders.The cumulative loss to the economy in the form of loss of production and other accruals to the economy are other losses.It is time a very serious view of NPAs is taken by autorities and all stakeholders and an urgent solution is introduced.  

Dr.T.V.Gopalakrishnan

(This is in response to a write up NPA refers to non performing administration that appeared in BS dated 9/5/2014).