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Letter to BS: Is Bad bank move another cog in the wheel with no benefits?

The new proposal will only embolden the politicians to influence banks to sanction huge amounts of loans for their kith and kin

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Business Standard
Not a good move
This refers to, “Bad Bank: Solution or more problems” (June 13) elaborately discusses the multifarious challenges plaguing the proposal of establishing a separate entity to deal with the stressed assets of banks. In fact, it would be another cog in the wheel with no benefits. Just passing on the buck of recovery of bad loans to another entity would only enable the banks sanctioning the loans to go easy on recovery sans commitment and seriousness from the stage of credit appraisal till the loan ends up with the tag of a non-performing asset. The officials of the