Sir— This refers to the article “Toward bad loan resolution” (November 6) by Sudhanshu R Das. The author gives good suggestions for reducing non-performing assets (NPAs) in the banking system. The enormous NPA is causing stress to the Government banks as well as Government which is trying to induct fresh capital to make banking a profitable business. The bank should take slew of measures to avoid NPA. Firstly, the bank mangers should be qualified enough to differentiate between good and bad borrowers. He should be computer savvy to check the past records of the applicant too. Secondly, if the NPA crosses four per cent, it should cause concern. Thirdly, the bank staffs on loan desk should be rotated that bias in favour of certain borrowers is minimised. Fourth, regular NPA audit should go on to find out erratic trends. lastly, the gold deposited as guarantee for loan should be tested by men of competence to verify the purity of the gold.