Loot of banks -the best way is through NPAS

.This loot and the loot through write off of farm loans at the instance of the Government has have been going on for decades without being questioned by any. Of late this topic has been drawing the attention as banks are not able to write off as they did in the past due to erosion of profit from Investments in speculative markets. The real estate boom witnessed in the early 2000s has also helped the banks to recover some of the loans from middle class and small borrowers.The Corporate borrowers know the art of hoodwinking and they get the support of the powers that matter. The solution for this is to forcefully recover the dues by sale of real estate and other assets. The asset reconstruction companies are the comfortable outlet  for bankers to loot and camouflage the loot. Even if they recover or write offs the future loot cannot be prevented unless and until a self liquidating mechanism is introduced to prevent formation of NPAS and write of of NPAS involving the banks and borrowers through a statistical model with approved researched results and that too without any scope for manipulation through human intervention and influence. SEBI has also to ensure that Corporates  do not manipulate the accounts and what ever they report about their bank deals should be reflecting in banks books and the rating of borrowers by banks need to reflect in Corporate Balance sheets. There are ways to contain and prevent NPAS but the will is absent as the lot is easy. Unfortunately the stakeholders of banks particulars the depositors.The other stake holders of the economy viz the Government, the tax payers do not also care as they have not seriously evaluated the accrual of loss to the economy occuring on a recurring basis.

T.V.Gopalakrishnan