Total inaction by authorities cause NPAs in PSBs

The discussions on NPAs have been going on for decades and the fact remains that neither the Government nor the rgulators, nor the banks boards nor the borrowers nor the borrowers' representatives, nor the depositors nor the shareholders nor the tax payers who subsidise the loss on accout of NPAs have done anything seriously to have a permanent solution to tackle this menace on a permanent basis . Though solution is possible and can be easily implemented aiming at disciplining the banks and borrowers without affecting the banks' profitability and taxing other stakeholders. No purpose would be served by highlighting the issues every now and then but without any serious thought as to how to contain the  ever  increasing head ache  involving  only the banks and bad borrowers. 

Dr.T.V.Gopalakrishnan

(This comment appeared in Business Line against the write up Better NPA picture for fourthquarter ).