It is a matter of concern that a number of public sector banks in India have reported huge losses because of unrecovered loans. In this context, the Supreme Court’s directive to the Reserve Bank of India, to present a list of companies which are big loan defaulters, is welcome.
Public sector banks have failed to take appropriate action against loan defaulters and as a result, non performing assets of many banks have mounted. It is the duty of the banks to initiate steps to recover loans from borrowers who have played truant.