The Hindu Business Line : Banks’ change of priority

This refers to the news item “PSU banks aim for aggressive passenger vehicle loan growth” (Business Line, November 18). Banks may expect growth in the sector.

However, the reality is a different story. Nobody wants to either sell or buy new cars for the simple reason that they are still unsure about the direction the economy is moving towards.

Most office workers are worried whether their jobs themselves are at stake and fear losing the same at any time. That being so, one cannot expect them to enter into fresh loan liabilities at this critical juncture. There is certainly bound to be a downward trend in the auto loan sector, despite the fact the interest rates have been lowered.

The need of the hour is for all banks to recover the sticky debts incurred by them on past loans, especially the defaulters. For those who have lost their jobs and defaulted on their EMIs, banks need to take special steps to defray EMI pending with the sale proceeds by auctioning the same.

This is an area where banks need to focus all their efforts, rather than waste time in trying to tempt and mislead prospective customers into yet another ‘debt trap’.

Ashok Jayaram Bangalore

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