Restructuring of problem accounts is a perfectly genuine banking tool and must be used if in the bankers’ assessment the business is worthy of revival and holds economic value. Any delay in reviving a project showing signs of incipient sickness would only lead to loss of further value which the banking system /economy can ill afford. Dealing with errant behavior 9.
It is a presumption in banking that all borrowers will be scrupulous and adhere to a general code of conduct. The issue is how to deal with imprudent and non-co-operative borrowers, wilful defaulters or for that matter, fraudsters? It is important that the errant borrowers are quickly brought to book and recovery proceedings be completed as early as possible.