The moment delinquent borrowers begin to realise that they will not be permitted to run business as usual and enjoy life with their dignity intact, they will invent ways to repay bank loans.
Better loan recovery brings relief to banks
Even as bank NPAs mount, the news of better recovery performance in Q4 of FY17 (FE, May 24) is heartening. The consistent regulatory guidance, more particularly from 2014 prescribing meticulous steps, is bound to bring positive results. It takes time for banks to act and their efforts to manifest results. Moreover, the headline-making collaborative action of government, RBI and banks in the last two years have had a psychological impact on borrower community. The moment delinquent borrowers begin to realise that they will not be permitted to run business as usual and enjoy life with their dignity intact, they will invent ways to repay bank loans. They will also stop diversion of funds, the main cause of surge in NPAs. This will bring down the future slippage of loans. As far as individual bank’s loan recovery performance is concerned, while rigorous efforts are essential, the recovery will depend more on the composition of NPAs.
— K Srinivasa Rao, Noida
Catching a Mallya
Apropos of “Catching fugitives” (FE, May 22), I share the view that facilitative agreements with other nations to bring back fugitive economic offenders should be in put place by India, to discourage the tendency of economic offenders to flee the country before they face trial. The proposed law—the Fugitive Economic Offenders Bill—must ensure a time-frame by which the persons under trial are convicted. Most people charged with offences, who have not fled the country, have spent some time in jail and have come out on bail and are enjoying the status of political leaders (Lalu Prasad) or lawmakers (Kanimozhi).
— S Vasudevan, Kodaikanal