This is a constant struggle that one is viewing almost ever since the lending started.”The major risk that the borrower takes the risk of losing his capital ” is something that we all understand. Similarly, the Lender also takes a risk of losing its principal and interest thereon, if and when the things go bad.That’s the way a balance is struck and the business of lending goes on and prospers.

The issue that RBI Governor Mr Rajan has raised is that there are many borrowers who either willfully default or do not try hard enough to honour their commitments to the lender. These are the borrowers who want the lenders to suffer and sacrifice first.This attitude is the point that irritates the lenders. To follow good etics is the bare minimum that should be expected and if found wanting, due and strict actions should not be delayed.

However, at the same time, the lenders too need to improve their quality of lending and monitoring. Timely identification of a likely default situation , continuing monitoring even when the going is good, extending a helping hand when needed re some of the things which are wellknown, well talked about but scarcely practiced.The situation of an NPA is so much scarry to the lenders that many a times they jump on a agreeing to debt restructuring proposal or putting excessive pressure of recovery leading to a stand off and precipitate NPA.

I feel there is a need to look at the issue of reducing NPAs at a holistic level and come out with some innovative plan of action Otherwise “Smart” promotors will keep on playing the game of ” Heads I win and Tails you Lose “.