Letters: Speed up banking reform

Apropos the editorial, "Tip of the iceberg" (February 16), surging bad assets of banks should not be seen in isolation: the situation has arisen from the contribution of several adversaries in the domestic economy and foreign ones as well.

Successive governments at the Centre since banks were nationalised are chiefly responsible for the present woes of the banking sector. Taxpayers and investors are bearing the brunt of the wrong policies of governments. Despite the banking sector's substantial role in the country's growth, it has been kept out of timely reforms.

The government should try to execute sector-specific reforms to ensure that funds due to banks are released on time. The government and the banking regulator should enforce stringent measures to recover dues from wilful defaulters. These defaulters are enjoying a luxurious life at the cost of the exchequer. Despite the directives issued from time to time by the banking regulator, unscrupulous borrowers are taking advantage of loopholes in the system and robbing banks of their capital. As investor wealth is eroding, there is flight of capital from the market. To protect the interests of investors and taxpayers, the government and the banking regulator have to improve the health of public sector banks.

V S K Pillai Changanacherry

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