........At a recent bankers’ meeting, Rajan hinted at bank chairmen with limited tenure dealing with stressed assets by evergreening them and leaving to their successor to deal with it, while Chakrabarty was blunt in saying that wrong appraisals were leading to diversions, over-leverage, fraud and non-performing assets (NPAs), and “they are all inter-related”. Evergreening refers to the practice of giving fresh loans to pay off the old loan of the same bank or other banks. Chakrabarty, who was a commercial banker and chairman of Punjab National Bank before moving to RBI, has tracked the growth and development of bad assets in the Indian banking system in the past two decades through a brilliant PowerPoint presentation that he had made at the bankers’ meeting.........
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