Cautious banking

The Reserve Bank of India’s warning that the country’s burgeoning corporate debt is unhealthy for economic growth, and the RBI governor hinting at signs of a 1930s-type Great Depression, should be a wake-up call for the government to instruct banks to refrain from giving bad loans. Effective verification of the loan taker’s credentials is a way of avoiding the accumulation of non-productive assets. This is counter-productive to the Centre’s pitch for “Make in India” as corporates lack funds to launch new projects.

Asawari Mahadani Indore