Bad loans of private banks balloon 62.5% in Q4

Bad loans of private banks balloon 62.5% in Q4: RBI-mandated review reveals ICICI, Axis have most NPAs; outlook for others better...



INFUSE EFFICIENCY INTO BANKING SYSTEM

Overdues, stressed assets, NPAs or whatever new name we may call it for accounting purposes, are a necessary ingredient in the business of banking. For minimising these and handling them timely, systems and procedures have to be in place and strengthening of this system by RBI in recent times has resulted in more transparency and more effort with GOI support to recover dues especially from wilful defaulters. The media debate is, sometimes, going on a tangent, trying to judge which section of banks are smarter-PSBs or private sector banks?- where the effort should be to make banking system more efficiently. Governments and political leadership should allow all financial institutions to function professionally and guidance should get limited to specifying goals to ensure economic growth and provision of credit to pre-decided priority sectors. 
M G Warrier

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