.... Bankers prefer to blame interest rate for worsening asset quality or blaming global recession for rise in bad debts or requesting RBI to reduce Repo rate , reduce CRR or pay interest on CRR to earn profit. It is important to say that even if CRR is removed or government permits payment of interest on CRR or reduce repo rate, corrupt , unskilled officers and incompetent officers cannot ensure safety of their assets. These banks have already earned huge profit by reduction in CRR rate. After all, liquidity generated by release of CRR or payment of interest on CRR provides relief for few months and for few quarters only. Even if CRR is abolished, bankers will have to accept the bitter truth and will necessarily need to cure the ills in the system to keep the asset in good condition. .........
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