With reference to “A gathering cloud” (October 30), it is high time the government looked for more radical reforms in banking, especially public sector banks (PSBs). The proposed recapitalisation of PSBs will augment the capacity to lend. But their functioning needs an overhaul to eradicate deep-rooted inefficiencies and emphasise on accountability. Resource mobilisation and its deployment are equally crucial to ensure healthy banking.
While policies are being framed based on broad guidelines of the regulator, it isn’t uncommon to see violations meant to accommodate big-ticket borrowers at the behest of politicians and bureaucrats. The debt servicing capacity of big corporates has
