Why FICCI should not come to banks' Rescue

This suggestion  by FICCI to set up AMCs  to take over banks' non performing loans  is nothing but transferring the disease of elephantiasis from one leg to another. Instead the FICCI should advise / direct all its members to conduct the loan portfolio with the discipline expected of them. No representative board has spoken a word about the bad debts of banks because of the borrowers' undisciplined approach to banks and availing of credit without bothering to utilise them properly for business expansion. The diversion of funds by the borrowers is the major cause of bad debts and this needs to be checked and controlled by the Federation if at all they care for public deposits and banks health. The borrowers know well that the money banks lend are nothing but deposits of public and the banks are only acting as trustees of these deposits and these funds have to be repaid on demand but the way they misuse the funds and dare not to repay come what may approach needs to be condemned and such borrowers have to be taken to task. The Chamber of commerce and Federation of Indian Chambers of Commerce and Industry have a moral responsibility to educate their members and cooperate with banks to recover the funds taken as loans to expand the business.

( Comment sent to BS dated 21/2/16)