As industrialist Vijay Mallya fights his wilful defaulter tag, - TopicsExpress

As industrialist Vijay Mallya fights his wilful defaulter tag, former Comptroller and Auditor General (CAG) Vinod Rai has said Kingfisher Airlines’ loan default is just a “trickle” and the overall problem of huge bad loans at public sector banks can be blamed on ‘cronies’ using connections to borrow money. Mr. Rai, who was the CAG during 2008-2013, has also stressed the need to understand the trend of non-performing assets (NPA) of private sector banks being very low in comparison to that of public sector lenders.Observing that cronies have neither the domain knowledge nor the financial strength to deliver, Mr. Rai in his new book has said that they use their connections to borrow from the banking sector, especially from public sector lenders that are prone to manipulation.“This is the underlying reason for non-performing assets (NPAs) of public sector banks going up manifold,” he has written in the book titled ‘The Dairy of the Nation’s Conscience Keeper — Not Just An Accountant’

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