Short cuts won't work

Debt recast norms should not be relaxed

The timing of a letter written by the Indian Banks’ Association requesting the Reserve Bank of India (RBI) to relax debt restructuring guidelines is hardly surprising. The March deadline set by RBI to recognise all bad loans is fast approaching, but banks, especially in the public sector, are facing a growing mountain of non-performing loans (NPAs). The gross non-performing assets (GNPAs) of public sector banks have climbed to Rs 6.2 lakh crore at the end of December, an increase of 56 per cent over the previous year. The GNPAs of public sector banks (PSBs) are now pegged at a staggering