This refers to the editorial "Ticking time bomb" (February 19). Although we could boast of India's strong financial system and the level of autonomy the Reserve Bank of India enjoys compared to the other central banks across the world, internally our central bank is no longer perfect. The non-performing assets of 40 banks crossed the Rs 2.4 lakh-crore mark. There is no respite for banks in India from the onslaught of higher interest rates and economic slowdown, which has led to a further increase in bad loans from corporations as well as the retail segment. Banking stocks had fallen on concerns of poor asset quality due to the depressing micro environment. And despite India's challenging economic environment, the government continues to encourage public sector banks to lend through capital infusion, a move that does not leave our banks better equipped to withstand the risks of further asset quality deterioration.
Vivek George Allapuzha
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Vivek George Allapuzha
Letters 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 letters must have a postal address and telephone number