Knowledge is power.
There may be many reasons for this approach. I think the politicians and bureaucrats also play an important role in this. They pressurise the bank top people and see that the loan is sanctioned. If that is not possible privatisation of banks is the only solution. Private banks are very careful and they know how to manage the issues. But even in private banks also if the top bosses are corrupt, these problems may happen. Corruption is the main reason for these problems. How to remove corruption is the main question now. ,
Besides the system, there are various government scheme under which a major amount are distributed through banks to the needy people and a portion of that amount goes to bad debt in the hand of banks.
In the FY 2018 there was maximum NPA amounting to Rs.895601.00 Crores. However during 9 months of 2020-21 the amount stood Rs.577137 Cr from Rs.678317 Crores against last year same period resulting Rs.100000 Crores reduction . While there is specific guideline for granting various loan, the bank always did not follow those criteria resulting such losses to the nation. Strict compliance of rules regarding sanction of loan and recovery procedures may reduced the losses only.
Believe in the existence of God the super power.
K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease