This refers to the article “Private lenders score over state-run banks on asset quality” (July 28). No one can contest the fact that the asset quality of public sector banks (PSBs) has been deteriorating and the gross and net non-performing assets (NPAs) of private sector lenders are relatively better. However, the gross NPA ratio of several PSBs is below two per cent, while that of some of the new private sector banks is more than two per cent.
PSBs have been at the forefront of financing the economy’s core sectors and helping a large cross section of society. Therefore, there cannot be any comparison because the risk profile of private banks is quite different from that of PSBs.
The top management and the boards of PSBs are certainly concerned about the current NPA position. Most banks have strengthened their credit monitoring and recovery departments, which would achieve the desired results, albeit slowly.
S Ravindranath, Coimbatore
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