Apropos the editorial "Banking on thin ice" (November 28), it is correct to say that though many measures and tools are being used effectively by the bank management, the quality of loans and advances is deteriorating quarter after quarter. This in turn is eating away banks' profitability. The interest of the stakeholders is jeopardised and that is adversely affecting market sentiment. The bank management and boards should not only examine the internal set-ups, but also the competence of executives who are managing the credit and recovery of the assets.
Whenever there are defaults, a detailed analysis should be carried out at different levels and result-oriented, remedial measures should be implemented without delay. Borrowers, irrespective of their size and category, should comply with the stipulations and conditions on which the credit has been granted.
Also, the promotion and placing of bank executives should be done on the basis of merit. Better results in these areas will certainly improve the quality of assets.
V S K Pillai Kottayam
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