Asking commercial banks to finance long-term projects was not a worthwhile move, as is evidenced by the mounting Non-Performing Assets (“Central govt. destroyed banking sector, says Pinarayi,” July 19). The Reserve Bank of India should enable the formation of a separate bank dealing with long-term loans, so that its Asset Liability Management and also restructuring as well as provisioning norms could be applied meaningfully, instead of asking commercial banks to bend over backwards to fund now and restructure later. The new entity can finance huge infrastructure projects that have a long gestation period.
R.S. Raghavan,
Bengaluru
