How to bring banks back to the credit market

Concerted efforts are required from the central bank and the government

Which comes first: The chicken or the egg? This age-old riddle has sparked many arguments and scientists are still in quest of the right answer, applying the principles of evolutionary biology.

The Indian banking community too, at the moment, is busy trying to solve a similar puzzle: What comes first — credit or the credit-worthy borrower? With their backs to the wall, bankers are unable to find too many borrowers who have the ability to pay back, though the chorus for credit from every segment of the economy is getting louder by the day.

What are the bankers doing with their money