Don't hound bankers: Defensive lenders are the last thing the economy needs

While there should be zero tolerance for corruption, bankers cannot be subjected to stop taking decisions because of fear that even genuine mistakes can result in hounding by investigative agencies

The arrest of five senior executives of Bank of Maharashtra, including the managing director and his immediate predecessor, has prompted the Indian Banks’ Association (IBA) to condemn the spate of such actions against bankers in the recent past. The latest arrests, made by the economic offences wing of the Pune police, were in connection with sanctioning a loan to real estate developer D S Kulkarni, and the loan had subsequently turned into a non-performing asset. Bank of Maharashtra has said the loan is fully secured and its action of declaring the borrower a wilful defaulter and possession of assets under