Government bent upon encouraging Stressed assets in banks.

''The appraoch of the government to set up a Fund to tackle Stressed assets of banks  can only help to encourage borrowers to default. This  will act as a moral hazard and water down the discipline envisaged on the borrowers to avoid diversion of banks funds and conduct the loan portfolio constructively.. What the Government should do is to have  a  Fund created by levying a penalty from undisciplined borrowers and unprofessional bankers in managing the credit portfolio. The approach to bring down stressed assets by using tax payers money or other stake holders of the economy other than those who are responsible to generate stressed assets is an injustice meted out to honest borrowers and other stakeholders of both banks and the economy.''

The Government cannot allow this loot by banks and borrowers using depositors hard earned savings and tax payers money mercilessly. Dr T V Gopalakrishnan