With reference to "Banks order forensic audit of accounts at first hint of trouble" (March 25), banks, particularly those in the public sector, are becoming more wary of lending due to the sudden burgeoning of bad assets. Though cautious steps by banks are warranted, they should be taken selectively and cautiously to avoid any negative impact on the growth of business, especially credit expansion. The recent adverse developments in the industry point to the need for setting up strong mechanisms to plug the loopholes in credit and recovery management. Strong preventive measures are equally essential, besides extreme measures at the fag-end.
While it is absolutely necessary to impart proper training to upgrade skills of the human capital for efficient discharge of duties and to guard banks from fraudsters, utmost care need to be in place to ensure genuine customers are spared any trouble on account of the implementation of preventive checks. Owing to the sudden slip in amounts of loan to non-performing assets, investigations are becoming more common thereby leading bankers to refrain from taking decisions on matters relating to sanctioning of credit facilities and stressed assets.
This situation will deteriorate the business appetite and acumen of the human resources, and eventually create hurdles to business growth. The woes of customers will multiply and banks will lose confidence of market capitalisation. As such, the imperative need is to look for a balanced approach to deal with the situation.
V S K Pillai, Changanacherry
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The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
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While it is absolutely necessary to impart proper training to upgrade skills of the human capital for efficient discharge of duties and to guard banks from fraudsters, utmost care need to be in place to ensure genuine customers are spared any trouble on account of the implementation of preventive checks. Owing to the sudden slip in amounts of loan to non-performing assets, investigations are becoming more common thereby leading bankers to refrain from taking decisions on matters relating to sanctioning of credit facilities and stressed assets.
This situation will deteriorate the business appetite and acumen of the human resources, and eventually create hurdles to business growth. The woes of customers will multiply and banks will lose confidence of market capitalisation. As such, the imperative need is to look for a balanced approach to deal with the situation.
V S K Pillai, Changanacherry
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