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![A majority of the write-offs involve big accounts, he said, underscoring the need to hold the senior management which clears the big loan proposals, accountable for its decisions [AP Images]](http://thebricspost.com/wp-content/uploads/2013/06/rupee-300x169.jpg)
A majority of the write-offs involve big accounts, he said, underscoring the need to hold the senior management which clears the big loan proposals, accountable for its decisions [AP Images]
“In the last 13 years, banks have written off 1 lakh crore and 95% of these are large loans,” said Reserve Bank of India (RBI) deputy governor KC Chakrabarty on Sunday.
A majority of the write-offs involve big accounts, he said, underscoring the need to hold the senior management which clears the big loan proposals, accountable for its decisions.
“Wrong appraisal is leading to diversions, leading to over- leverage, leading to fraud, leading to NPAs…they are all inter-related,” Chakrabarty said.
He attributed the high incidence of stress on the books of public sector banks (PSBs) to poor credit appraisal and management and asked them to be economical with recasts, if not end the system of restructuring.
“Between 2007-13, credit to 10 large corporate groups has more than doubled. We have seen that wherever credit growth has been higher, NPAs(non performing asset) are also higher.”
He was speaking at the Indian annual bankers’ conference.
Using data from the last 20 years on the asset quality front, Chakrabarty said state-run banks, which control 75 per cent of the system, report over 86 per cent of the non- performing assets.
Source: Agencies
