Letter to BS: Recognition, resolution must go hand in hand to improve banks

This refers to “RBI scrutiny of stressed loans intensifies” (November 28). At a time when arguments are on about the autonomy and accountability of the Reserve Bank of India (RBI), the move to detect deviation and divergence in the recognition of the assets, and accounting the required level of provisions as per the prudential norms will enable banks to initiate corrective action to comply with the norms. The uniformity in asset classification and income recognition is of paramount importance in respect of consortium accounts across the member banks to make sure the financial statements are accurate and highly transparent.

The RBI