Not The Same

It is not clear whether the writer criticises the former Indian Bank chairman or the present IOB chairman or the RBI governor or the finance ministry. Had he identified the root cause of the decay in banking system and suggested ways to stem it, that would be more enlightening. I wish to stress two points here. Firstly, Indian Overseas Bank had reported the losses in black and white, whereas Indian Bank had not done so, willfully. The readers will appreciate the difference between the two attitudes.

Secondly, it is wrong to see ghost in every shadow. Just because one chairman was incriminated in making his bank a pauper, we should not suspect every chairman. Such suspicion will only drive out the good personnel out of the nationalised banks.

Nationalised banks are a failure not only in managing their loan assets, but also in managing their human assets. They should learn to classify their human assets into various grades, like performing, non-performing and dis-honest assets. Till then, no amount of recapitalisaton bonds can save banks.