As the report, “PSBs’ stress level down with better recoveries” says, public sector banks have not been able to touch big bad eggs (read big-ticket loans). The reasons: either the promoters are quite influential, or the banks do not know the way forward the situation. The legal landscape is helping defaulters. Legal reforms will not only expedite the process of fixing the responsibility of payment but also of recovering the dues by putting up for sale of leftover assets.
Wherever personal guarantee of promoters is available, banks should invoke this remedy. The argument in banking circles is: what does one get
