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Non-performing assets are a real issue in banking industry. In a nutshell, all loans
which have stopped performing (paying interest) are classified as NPAs. While there is actually
an attempt to bring these out, I share your apprehension that the Government and the banks
are not proceeding in the right direction. The effort should be to penalise the defaulter
and not reward him with waivers and right off. While the latter may be the only recourse
available to Banks today, the fact remains that this method of tacking NPAs has already
vitiated the credit scenario in the country.
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