it’s time to invite a tough query. How did bank boards, chief executive officers, regulators, auditors andrating companies not recognize nicely earlier than now that there’s an unholy mess at the loan books of Indian banks? Or did they understand and remain silent? And greater mild desires to be shed at the credit score bubble inflated over the past decade underneath political pressure from the finance ministry.
The contemporary batch of quarterly bank consequences—Punjab country wide financial institutionbeing the most dramatic example—shows how a whole lot harm has been due to this conspiracy of silence. The sheer tempo at which skeletons are tumbling out of financial institution closets in recent timessuggests that the taxpayer will soon be offered with the bill for cleaning the mess. that is why it’s farcritical to apprehend what went wrong. the concern that there may be a witch-hunt against bankers—areal worry—should not prevent an honest appraisal of what now seems to be a deep systemic failure.
