Bullion Divergent, Sugar Subdued, Metals Mixed

TRENDS AND Progress of Banking, 1998-99, brought out by the Reserve Bank of India reveals some shocking data about the workinig of Indian Bank.

As against the net non-performing assets (NPAs) of the banking system of 7.5 per cent, Indian Bank's net NPA was 21.7 per cent. Action by the vigilance department was taken at the drop of a hat, as complained by banks, but one wonders, what action was taken by the vigilance department of the bank as regards the accountability of those directly responsible for such state of affairs.

Doesn't this indicate that the system of assessing the risk was very faulty, and if so, why it was not noticed by the periodical inspections by the Reserve Bank? Undoubtedly, some explanation is called for from the supervisory authority for its failure to detect the faulty assessment of the risk involved in lending at Indian Bank.

R P Vaidya, Mumbai

Law and justice

THIS REFERS to the well analysed article "Adminis