Apropos the editorial "Bad loans and worse" (August 11), the other major non-performing assets in the banking sector that surfaced recently, have no comparison with the current ones. Kingfisher is an example of regulatory indecisiveness coupled with promoters' aggression and bankers' inability to limit the level of risk absorbing capacity. In case of Deccan Chronicle Holdings, the credit monitoring was weak on the part of banks.
The case of Bhushan Steel is different in the sense that it is a high-value borrower. This single incident will not only influence the banking system but also industry, investigating agencies and society. It will have an adverse effect on the attitude of the common people towards public sector banks (PSBs).
Along with the restructuring of bank boards, the selection of PSB chiefs has also emerged as an important factor. Additionally, industry promoters will play a key role by not being amenable to pressure tactics for bribing. There is a need to create a cell at the appropriate level for handling such grievances. Banks are the custodians of public money, which should be made available for creating and running productive assets, not to fulfil personal greed.
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The case of Bhushan Steel is different in the sense that it is a high-value borrower. This single incident will not only influence the banking system but also industry, investigating agencies and society. It will have an adverse effect on the attitude of the common people towards public sector banks (PSBs).
Along with the restructuring of bank boards, the selection of PSB chiefs has also emerged as an important factor. Additionally, industry promoters will play a key role by not being amenable to pressure tactics for bribing. There is a need to create a cell at the appropriate level for handling such grievances. Banks are the custodians of public money, which should be made available for creating and running productive assets, not to fulfil personal greed.
Tarun Kumar Ray New Delhi
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