<b>Letters:</b> PSBs need govt support

With reference to the report, “PSBs’ stress level down with better recoveries” (February 14) by Abhijit Lele and Sameer Mulgaonkar, the positive results being delivered by big public sector banks in reducing stressed assets could be augmented in the remaining period of the current financial year if these lenders get all-round support from the government. 

Practically all the banks were unable to pay adequate attention to the matter due to the additional burden of demonetisation. The banking industry was exclusively attending to matters related to the exchange and collection of cancelled legal tender. Large borrowers, who wilfully or otherwise defaulted in servicing loans, must be pressured to garner resources and pay up the defaulted amount. The success rate of recovering overdues is dependent on government support. The government should look to execute reforms so that companies can accelerate revenue generation.

For PSBs, recovery of bad assets should be top priority to ensure their existence. The declining efficiency of PSBs need to be reversed to build credibility, otherwise the market will become averse to investing in these banks. The beaten-down value of scrips points to that, therefore, it is imperative for PSBs to appeal for support from the government. 

This apart, banks should follow up with defaulters to accelerate cash recovery of dues. Big-ticket borrowers being part and parcel of the economy, must support the banking sector to ensure the growth of the economy. Without borrowers no lender can do business. Both parties should understand the other’s problem.

V S K Pillai   Changanacherry

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