Who is against public sector bank reforms, anyway?
Who wants public sector bank reforms, anyway?: The massive bad loans reflect a breakdown of basic banking
March 5, 2018
This refers to the interesting article by Debashis Basu “Who wants PSB reforms, anyway?” (BS, Irrational choice, March 5). Permit me to rephrase the question and answer it before commenting on the content of the article. Who is preventing a wholesale overhaul of PSBs to bring them on par with the best among the world-class commercial banks? They include the rich and the powerful who own and operate governments in India, mainstream media houses and private sector business who depend on laxity in the appraisal of loan proposals and recovery arrangements in PSBs.
In the episodes which have triggered the present debate including this article also, you can decipher the soft corner the lobbies against PSBs have for those who have looted the banks and brought disgrace to the Indian Banking System. The pressure on the government to bring to books the people who swindled money is conspicuous by its absence. The effort is to divert attention to procedural lapses or shift the responsibility from one shoulder to the other.
Why not build up a case for recovery from the borrowers, if necessary by changing laws? No, the motive is to shed tears for taxpayer or depositor while those who have looted banks get more time to hire better lawyers or idle away the time till a change of government will help them out. Remember, these borrowers who account for a major portion of PSBs’ NPAs have several pockets and only some of them are empty!
M G Warrier, Mumbai