This refers to the editorial "Non-performing managers" (August 26). The Reserve Bank of India (RBI) deputy governor's remarks on the reasons for the unabated growth in non-performing assets (NPAs) of public sector banks is true and this callousness gets accentuated when the slowdown of the economy also becomes handy to justify the non-performance. Accounting gimmicks in banks have been a regular feature since there has always been a trade-off between the auditors and management. Even the RBI becomes helpless since its system of regulation and supervision does not offer scope for proper scrutiny of all transactions and borrowal accounts. Unfortunately, the loss on account of NPAs is borne by the shareholders, depositors and good borrowers. The only way to solve this menace is to make banks and borrowers accountable through close monitoring and supervision of loan accounts.
T V Gopalakrishnan Bangalore
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T V Gopalakrishnan Bangalore
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number