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Reform with result

The cascading effect of elevated bad loans is explicit in every segment of the economy

Business Standard 

Apropos Debashis Basu’s column, “Bad loans: The bungling and farce continues” (July 10), despite various measures by the government and the Reserve Bank of India, the natality rate of bad loans far exceeded the mortality rate, leading to the current pile-up of huge stock. 

Experiments and measures undertaken have hardly fetched results. This points to the fact that the executed measures or reforms are neither effective nor relevant.

The cascading effect of elevated bad loans is explicit in every segment of the economy. At a time when the economy is starved of investment, undeterred growth of bad loans is pulling down credit expansion and investment.

Demand for credit has to be created and investment for manufacturing activities should get priority. Quality credit, its speedy delivery and timely recovery are of paramount importance to bankers. 

The government and the banking regulator should initiate necessary action to ensure continuous coordination between various agencies to stem the growth of bad loans. 
 
V S K Pillai   Changanacherry

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First Published: Tue, July 11 2017. 22:31 IST
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