Letter to BS: Setting up of a bad bank to park all NPAs is irrational

History will not judge the decision kindly

The idea of setting up of a bad bank to park all the non-performing assets (NPAs) of the public sector banks (PSBs) is irrational. To merely tuck away the NPAs of PSBs is like brushing all the dirt under carpet rather than cleaning the house. Sooner or later, the same reckless lending and lack of accountability will give rise to another mountain of NPAs. A government which has so much political heft and talks about economic reforms is taking the easy way out of a difficult, and frequently recurring, situation. It should show both the boldness and the wisdom to