The SBI topped the list in the first two years and the Indian Overseas Bank last year. In 1995-96, the SBI with Rs 398.69 crore was followed by Bank of India with Rs 307.08 crore and Canara Bank with Rs 169.49 crore. The following year, 1996-97, the Indian Overseas Bank with Rs 375.73 crore was followed by the SBI with Rs 293.67 crore and the UCO Bank with Rs 220.57 crore.

According to the list prepared by the Finance Ministry thelowest debt which was written off in 1996-97 was Rs 94 lakh by Corporatioin Bank. The lowest in the previous year was Rs 82 lakh by Oriental Bank of Commerce and that in 1994-95 was Rs 1.70 crore by the Punjab and Sind bank.

The introduction of the financial sector reforms and revised guidelines have necessitated banks to desist from the practice of taking unrealised income in their books and also to provide against possible loan losses. According to the criteria prescribed by the Reserve Bank of India, the authority approving the write-off proposal should not have sanctioned the advance in question in his individual capacity. There should not be any laxity in the conduct and post-disbursement supervision of the advances. The RBI guideline also has stipulated that there should not be any act of omission or commission on the part of the staff leading to the debt proving irrecoverable.

The banks should expeditiously examine the aspect of staff accountability.

Banks have also been advised that in theirattempts to reduce non-performing assets through negotiated settlement they should ensure to recover the dues to the maximum extent possible at minimum expenses.

The RBI has also started taking action to strengthen the system of debts recovery tribunals. The board of directors of banks normally review top 100 accounts of each of the three categories of non-performing assets --substandard, doubtful and loss category to fix staff accountability.