STATSGURU (July 25) highlighted the public sector banks' (PSBs) capital position over a period of five years. PSBs are helpless when it comes to the recovery of dues of wilful defaulters. Hence, more capital is required for provisioning against the NPAs (non-performing assets). Harping on about capital levels is not the remedy. PSB claims are dealt with by the judiciary on a par with general disputes. Cases in debt recovery tribunals are pending for long. Enforcing recovery certificates is very cumbersome. Sarfaesi proceedings are stayed out by courts defeating the very purpose of the Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act. PSBs' claims for recovery should be prioritised, only then can these banks be strong. Else, there could be a future worse than today. The government should wake up and modify the legal procedures for PSBs.
K B N Rao, Bengaluru
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