Letter to BS: More public sector banks may be told to stop fresh lending

With reference to the front page report, “More PSBs may be told to stop fresh lending” (May 14), by Abhijit Lele, selectively directing weak public sector banks (PSBs) to stop fresh lending may be a good idea, but this cannot, most certainly, be the way out for the larger problem of non-performing assets affecting almost all big PSBs, indeed all banks. We can’t throw the baby out with the bathwater.

What we need to do is to fix responsibility for any laxity and undue favours in the process of sanctioning such loans — essentially looking for possible frauds. Public perception about