Loss-Making Banks

The chairman and managing director of Indian Bank has expressed confidence in a fast turnaround of the bank, through better treasury and credit management and is hopeful of showing even net profit during the current year. If that is the case I don't understand the reason for his total silence for nearly one month, even after publishing the balance sheet. I don't think the he would have discovered these positive aspects of the Bank only after publishing the balance sheet. It is not known whether various options including revaluation of fixed assets, the market value of which is far more than the book value, were examined to strengthen the capital base of the bank. As a prudent banker he should have called a press conference immediately after publishing the balance sheet, which would have contained the damage to a great extent.

 

What ever may be the reason for this delay, it will take time for the bank to come out of the blues.