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Letters: Bogged down by NPAs

Banks took a plunge when the financial climate was perceived to be favourable

Business Standard 

The issue of non-performing assets (NPA) should not be viewed in isolation for one at a time when growth is hard to come by.
 
A sharp rise in of banks is due to internal and external factors. Big banks such as the IDBI Bank, by virtue of a relatively large asset base and institutional orientation towards development finance, have more exposure and hence more


 
Banks took a plunge when the financial climate was perceived to be favourable and credit proposals received were found to be commercially viable. Risk perceptions are based on key available indicators, which keep changing with time. Predictions turn out wrong almost always. The uncertainty level is so high that it is difficult to figure out what the situation would be like a few days later.
 
With credit growth of banks becoming near stagnant, even with a cut in the lending rate, there are no signs of revival.
 
Banks should be allowed to carry out their normal functions such as lending instead of being bogged down by the burden.
Srinivasan Umashankar Nagpur
can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number

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Letters: Bogged down by NPAs

Banks took a plunge when the financial climate was perceived to be favourable

Banks took a plunge when the financial climate was perceived to be favourable The issue of non-performing assets (NPA) should not be viewed in isolation for one at a time when growth is hard to come by.
 
A sharp rise in of banks is due to internal and external factors. Big banks such as the IDBI Bank, by virtue of a relatively large asset base and institutional orientation towards development finance, have more exposure and hence more
 
Banks took a plunge when the financial climate was perceived to be favourable and credit proposals received were found to be commercially viable. Risk perceptions are based on key available indicators, which keep changing with time. Predictions turn out wrong almost always. The uncertainty level is so high that it is difficult to figure out what the situation would be like a few days later.
 
With credit growth of banks becoming near stagnant, even with a cut in the lending rate, there are no signs of revival.
 
Banks should be allowed to carry out their normal functions such as lending instead of being bogged down by the burden.
Srinivasan Umashankar Nagpur
can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number
image
Business Standard
177 22

Letters: Bogged down by NPAs

Banks took a plunge when the financial climate was perceived to be favourable

The issue of non-performing assets (NPA) should not be viewed in isolation for one at a time when growth is hard to come by.
 
A sharp rise in of banks is due to internal and external factors. Big banks such as the IDBI Bank, by virtue of a relatively large asset base and institutional orientation towards development finance, have more exposure and hence more
 
Banks took a plunge when the financial climate was perceived to be favourable and credit proposals received were found to be commercially viable. Risk perceptions are based on key available indicators, which keep changing with time. Predictions turn out wrong almost always. The uncertainty level is so high that it is difficult to figure out what the situation would be like a few days later.
 
With credit growth of banks becoming near stagnant, even with a cut in the lending rate, there are no signs of revival.
 
Banks should be allowed to carry out their normal functions such as lending instead of being bogged down by the burden.


Srinivasan Umashankar Nagpur
can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number

image
Business Standard
177 22