 "Cash, bank | Illustration: Ajay Mohanty")
This refers to “Bank recap no different from farm loan waiver” (December 24). The recapitalisation of state-owned banks and farm loan waiver are at the cost the exchequer. The infusion of capital in the capital deficient government-owned banks without reforming the working and set-up of the banks is nothing but pushing good money after bad assets. The reforms executed in the banking sector are yet to yield intended results.
The loan frauds that led to a rise in the bad asset is the result of improper and ineffective systems that paved the way for dishonest banking personnel to commit frauds. Some
