With reference to Dev Chatterjee and Abhijit Lele's report, "Banks want promoter's guarantees for new loans" (September 20), the decision of bankers to ask promoters for personal guarantee for corporate loans is the after-effect of not only huge loan defaults by liquor baron and tycoon Vijay Mallya, but also the inability of financial institutions to liquidate mortgaged assets through public auctions.
Law-enforcement authorities are neither able to bring the defaulter back to India to face trial nor seek his extradition. Banks have woken from their slumber late. For this, in some way, have to thank Mallya.
Rajiv Magal, Sakaleshpur
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