Recovery of bad loans

Accumulating  bad loans in commercial banks in India cannot be considered as an eventual process. It is the result of willful attempt by  bank higher ups and politicians. How could liquor baron Vijay Mallya lead a lavish life when he remains as a defaulter of several crores to many banks? Why is he not arrested and put in jail after confiscating his  assets?

So, in this regard the Supreme Court directive to the Reserve Bank of India to provide the list of companies that are defaulters of bank loans, is in the right direction. The banks, for instance, the SBI or PNB are not taking any stringent action to recover the loan amount from defaulters. Their strongest action is seemingly, declare a defaulter as a ' willful defaulter'. This is some thing akin to ' growth of banyan tree in the back of shameless defaulter'.

Average investors and retirees who put their money in bank stocks are now sitting their fingers crossed. Are these banks going to melt in thin air?

If anyone says recovery of bad loans is not visible in near future then it is certain that he is also involved in the robbery. Recovery from the private assets of bank officials who issued loans and of defaulters should soon be done to save banks. The SC directive will also restrict future looting by banks by way of advancing large- scale loans to unscrupulous promoters.

-K A Solaman