This is with reference to the article “Economy is not the villain” (Business Line,April 12). It has been assertively pointed out that poor credit appraisal and improper monitoring of the loan operations are the main reasons for the bad loans in banks. Nevertheless, the slow down in the economy cannot be pointed out as the major reasons for bad loans. If it is so, private banks must also show increasing NPAs. The best way to monitor loans and prevent bad loans is to appoint a RBI nominee in the board of corporates with above Rs 100 crore borrowing from banks.
- N. R. Nagarajan (HBL)
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