But while the broad goals are not in doubt, the immediate way ahead is far from clear. The market suspects both banks and FIs of ever-greening their NPAs. These doubts can be dispelled by more transparency. Banks now publish quarterly results, but data on a quarterly basis on the quantum of sub-standard, doubtful and lossassets, together with a break-up of the provision for bad debts, would go a long way to help transparency. Apart from disclosure, frequent on-site inspection by the RBI, and publishing its findings will also help. Banks must also address the problem of declining spreads and the lack of growth in lending as a consequence of the economic downturn. While the report congratulates banks for their performance last year, much of that performance was owing to write-back of excess provisions for depreciation and profits on sale of investments. With firms being allowed to shop for deposit rates, banks in India will have to assess their incremental cost of funds and returns on a real-time basis. For that to happen, much must change, including technology, risk management, and personnel policies.