Letter to BS: How to control the birth of NPAs is foremost task of lenders

Risk is an integral part of the economic activity and lenders can't escape risk

This refers to “The three Rs of public sector banking” (June 17). Though the Insolvency and Bankruptcy Code (IBC) has helped reduce the level of stressed assets of public sector banks, the government has to execute further reforms to ensure the IBC and judicial system speed up resolution and recovery of the non-performing assets (NPAs). 

While banks, especially the state-owned ones, are engaged in driving social development too, they should be manifold in lending. Asset creation in some of the segments of the economy alone will not propel growth holistically, but pave the way for the rise of defaults. Lenders must