With reference to the report, "CBI chief raps banks over defaulters, bad loans" (March 3), Anil Sinha's remarks are directed at the authorities concerned so that they look into the present state of the Indian polity and the world economy.
The surge in non-performing assets at public and private sector banks has many aspects. First, the government's well-intended plan to boost infrastructure went awry due to the derailment of power projects in which banks had large stakes. Second, the past decade saw companies in emerging markets led by China grow by leaps and bounds, resulting in over-leveraging by banks. Third, in the boom period, some companies siphoned off a part of the finance into real estate.
With the slowdown in China now, the world economy is affected and so is India's. Lack of liquid assets means companies cannot pay their dues to the banks.
The Central Bureau of Investigation can check corruption in the public sector, but inadequate manpower, lengthy legal processes and political influence have helped increase wilful defaults of huge loans.
Chandra Prakash, Mumbai
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