Letter to BS: Insolvency and Bankruptcy Code needs firm backing

The government and the RBI have rightly introduced the IBC, which is working slowly but surely in the resolution process

This refers to “Wilful blindness about the main cause of bad loans” (July 23), it is well known that reckless lending by public sector banks (PSBs) during the second tenure of the previous government led to the problems being faced by these entities. This happened due to political interference, corporate pressures, corruption and the technical inability of the PSBs to judge the viability or the lack of it in power, steel, textile and infrastructure projects among other reasons. The collateral taken was too little and much of it was encumbered. A fair amount of these loans were diverted to unconnected