Letter to BS: Bankers are reluctant to lend over NPA, profitability concern

This has reference to Tamal Bandyopadhyay’s, “Have our bankers forgotten to lend?’’ (March 2). This follows the fi­nance minister’s recent exhortation to lend money to the credit starved micro, small and medium enterprises.
 
The reluctance of bankers to be over-enthusiastic in granting loans should be seen through the prism of the changed banking scenario. Two aspects of banking have clouded the landscape — the basket of bad debts and their profitability.
 
Many banks are laden with massive amounts of non-performing assets. A lot of effort and time is being expended in a bid to recover these loans. The