India Inc should fight with bankers for a reduction in the rate of interest as banks have been reluctant to pass on the benefits to borrowers. Further, Industries' Association has a moral responsibility to help bankers to reduce their non performing loans by advising its members and educating them that banks lend the deposit funds raised from public and banks are answerable to the depositors and other stake holders. Chambers of Commerce and industry have never appealed to their members to behave well with banks and conduct their loan accounts satisfactorily. Banks with all their problems are bent upon maintaining their NIM high at around three percent which is not logical and needs to cut down drastically and pass on the benefits to borrowers. Banks should also learn to discipline their bad borrowers and award their good borrowers.A lot can be done if banks and borrowers open a free dialogue and find ways and means to come out of the NPA menace, high cost of funds, and find ways to ensure efficient transmission mechanism to pass on RBI's policies in letter and spirit.The present approach of hide and seek game adopted by RBI banks, Government and Borrowers needs to come to an end.
Dr.T.V.Gopalakrishnan
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