This refers to “Now is the time for a bad bank” (November 1). It is imperative to note the GNPA (gross non-performing assets) of all commercial banks have declined in FY19 post the ushering in of the Insolvency and Bankruptcy Code (IBC). The painstaking efforts of all banks are commendable and would be proven by their recovery. It would be in the interest of everyone to continue with ARCs (asset reconstructions companies) as they have covered substantial ground in 15 years gaining massive experience.
Contracts and outsourcing is a way of life now. Bankers who have given loans following a structured process by calling the correct shots are the kind of industry professionals who should be deployed in the ARCs to tackle bad loans. It is important to note they made the preparation with the right ingredients and they are equipped to handle the after-affects, thanks to their experiences. ARCs have valuable exposure of more than a decade; using artificial intelligence and blockchain to deal with the stressed assets is the need of the hour.
N K Bakshi, Vadodara
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