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Now that three of the most important stakeholders in the Indian banking landscape have spoken in favour of essentially treating 'lending' as the dharma and karma of bankers, it is time perhaps to revisit the entire gamut of issues connected with decision-making in credit, especially in public sector banks. Addressing a convocation at the NIBM last week, Vinod Rai, currently chairman of the Banks Board Bureau and internationally respected for his role as the CAG, said "the cacophony of uninformed voices should not impact the decision-making process of bank executives". About the same time, while SBI chairman and banking thought-leader, Arundhati Bhattacharya, said that lenders need to be "empowered" and not rapped on their knuckles, the RBI governor, Raghuram Rajan, put across a broader regulatory perspective that "it would be wrong to take a negative view on the lenders' judgment on a non-performing loan after the passage of several years and linking it to the changed situation prevalent at that time". All three seemed to be reading from the same page of an ideal treatise on commercial banking practice. But when you come to the ground level, decision-making, especially in high-value credit, is still hampered by fear of intervention by the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI), sometimes many years after the event. Bankers take commercial decisions and could go wrong in both their judgment and assessment. It was Napoleon Bonaparte who said that, "Nothing is more difficult, and therefore more precious, than to be able to decide." This adage is important for any discussion on this subject. As bankers, there are at least ten decisions relating to 'money' that we make every day, and these could ultimately add to the bottom-line or impact it adversely. And even though we are in the public sector,
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