Letters: Window dressing again?

Apropos the edit “SBI turns around” (May 31), the bank’s performance smacks of the industry practice of window dressing accounts. You state in the edit that provisioning was made not only in terms of regulatory requirements, but also to save on income tax. What was the need to make provisions higher than the stipulated requirements? Unfortunately, the accounting norms in the banking industry allow participants to play with data to suit the top management’s convenience without attracting penal provisions either from the banking or accounting regulator. This is perhaps the only industry that allows the processing of data in favour of the management.

K V Rao, Bangalore

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