Opinion
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Letters to the Editor
Public sector banks
Sir, — The article `What ails public sector banks?' by R. Viswanathan (Jan. 17), is more a diatribe against the Central Vigilance Commissioner than one intending to prescribe a remedy for the ills plaguing the banking industry.
If, as the author feels, the vigilance machinery as it exists today is a negative factor, one fails to understand how the level of NPAs is shooting up year after year and frauds are ever increasing. Even granting that the vigilance machinery has led to the zero-risk attitude spreading its tentacles, can the author explain the reason for the paradoxical situation of low recovery of large advances, when there is absolutely no risk involved at all in loan recovery?
If one goes to the root of the problem, the politician-banker-industrialist nexus has led to the decay of the banking system in our country, corruption playing a major role in it.
The huge amounts locked up in sick units are more on account of bankers succumbing to political pressures in the granting of advances, than any other factors. The author has not addressed the real issues confronting the banking industry but strives hard to defend bank executives.
K. Lakshman,
Chennai
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