The banks in India do not normally prefer to write off loans covered by collateral during the pendency of cases in law courts. Looking into the delays in realisation of collateral, it is of paramount need to focus our attention on expediting legal reforms recommended by the Committee on Banking Sector Reforms (Narasimham Committee II).
Initially, it may appear that taking banking services to the sections constituting the “bottom of the pyramid” may not be possible or viable, but as various studies reveal, even the relatively low margins on high volumes can be a profitable proposition.