Don’t let the fear of what could happen make nothing happen.” This statement aptly describes the conduct of a banker when it comes to recovery and restructuring of NPAs. The fear of 3Cs—CBI, CVC and CAG—has impacted the psyche of a banker and it will take a long time before this can be assuaged by some affirmative action of the government. In fact, SBI is on record saying that it would be better to restructure assets under the Insolvency and Bankruptcy Code rather than doing it within their own discretion for fear of being faulted in the future, so that these agencies don’t haunt a banker even after retirement or arrest a banker 5-10 years after she demits office or retires. This was a fallout of the decision of the CBI to arrest bankers who approved the loan, whereas Vijay Mallya, who is the beneficiary of the loan, is still cooling his heels in the UK.

via How to tackle NPA crisis: With RBI-less banking – The Financial Express