Bankers should be alive to the increase in risk

The present problem is that banks allow excessively high leverage thus leaving out any possibility that the borrower can be made to deal with emergencies

Some concerns have been expressed that the one-day default clause (in the new framework for resolution of stressed assets) is onerous. These concerns are not well founded. For cash credit account, the 30-day trigger has been retained. For term loans, where the repayment schedules are predetermined, borrowers need to and indeed have enough notice to arrange funds in time. It is a behaviour change in repayment of credit that has to come about. I must say here, on the basis of first few reports received from banks under the new reporting system, that non-payment on due date appears to be