When Banks aren’t Safe

It is baffling that every year, government banks write off Rs 15,000 crore of bad debts. Public money is squandered in the advances made to persons or institutions lacking creditworthiness and trustworthiness in repayment of loans. Every rupee collected from taxpayers has to be accounted for properly. That is not being done. The continuing loss in public sector banks has been forcing the government to impose more and more taxes on the common man to plug the mounting losses. The government must wake up before the people’s confidence in public sector banks erodes. Banks must obtain sufficient collateral security while making advances to safeguard taxpayers’ money. 

- KV SEETHARAMAIAH, Hassan  (ET)