<b>Letters:</b> A prudent solution

The move is justifiable because it will cleanse their stressed balance sheets

With reference to the report, “Large wilful defaulters face criminal action” (March 18), at a time when various measures initiated by the government and the banking regulator have not yielded the expected results, the plan of one-time settlement and criminal action against wilful defaulters are proactive steps. These steps will succeed in speeding up the resolution of bad loans.

The recognition of defaulted loans in banks’ books and the plugging of legal loopholes to prevent delinquents from escaping criminal action are important to realise the securities charged to the banks.

The banking sector — especially, public sector banks — has had a