Letters: Non-performing banks

Apropos the editorial "The banking agenda" (January 5), banks seem more worried about the debt waivers extended to farmers for a genuine cause, and apparently less concerned about the burgeoning non-performing assets and big-ticket wilful defaulters. The dismal performance of the banks in reducing and stalling the growth of non-performing assets points to this fact.

As suggested by the P J Nayak committee, creating a holding company, restructuring the board, appointing meritorious directors and reducing the stake of the government will go a long way in improving the performance of public sector banks.

Since priority-sector lending and financial inclusion are necessary for inclusive growth, any reforms to be carried out should also take care of these social objectives. Otherwise, it will defeat the very purpose of bank nationalisation.

V S K Pillai, Kottayam

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