What Can Financial Institutions do to Prevent Corporate Sickness?

Abstract

Corporate sickness has reached the proportions of an epidemic. Yet more than four-fifths of the large sick units are considered potentially viable.

Public financial institutions have a major stake in the revival of sick units, because they assist most and up to well over half their invested capital. What can they do to prevent sickness?

Professor Khandwalla conducted an interview-cum-questionnaire study of officials, especially 36 rehabilitation officers closely involved with sick units.

While inappropriate management is the major cause of sickness, financial institutions' own procedures arid practices are also an important cause. Several recommendations emerge from the study for remedying the situation through early detection and timely preventive action.