Bad debts pile up to this extent?

The Supreme Court of India has asked the Reserve Bank of India to list out the loan defaulters from among the big loanees.

Now the court has sought the names of people who had got their loans amounting to Rs 500 crore and above written off by the lending banks.

Think about the situation when a student has to struggle hard with the bank authorities to get a puny amount as loan for his or her education.

The banks levy up to or around 16 per cent of interest. And whatever money is repaid by the student is accounted for only with regard to the interest and not the capital of the loan portion. The loanee would never be absolved from the loan trap.

At this juncture, the banks have no qualms to spirit off thousands of crores of rupees to the big shark. Their debt is simply waived off.