Letters to the editor

Moody's caution

Your editorial, "What is stressing banks" (FE, December 6) comes at the right time. Perhaps the answer lies in Moody's comment on the asset quality of Indian banks as referred to by you. While the number of NPAs are increasing, adequate provisions are lacking. There is a need for stricter provisioning norms. But that alone is not enough. Government's policy on recovery from big companies and massive waving of farm loans are also to be examined. Moody's caution is to be taken seriously.

Jacob Sahayam


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