The Hindu Business Line : A tightrope walk

This is with reference to your editorial "A tightrope walk by RBI" (Business Line, May 19). Despite the recent bloodshed in the stock market, and the lower projection of GDP growth rate to 6.5-7 per cent as against 8.1 per cent, it brings relief in the RBI perception that the economic fundamentals pose a strong situation.

The low projection in GDP growth may be attributed to uncertainty in the performance pattern of the new government at the Centre. The absence of a `real' government in New Delhi may have persuaded the Governor not to change the key rates.

The `conservatism' exhibited by the present credit policy may face a swing to either side with the presentation of the first budget of the government.

The present row between the government and the RBI over the ownership and governance of the commercial banks is an item that demands urgent attention.

The cap on voting rights should be modified if necessary, to the interest of the banking sector and the Indian economy.

The government should avoid piece-meal banking reforms and address the entire issues including amalgamations and rationalisations.

The amalgamation and grouping of multi-banking system may give further impetus to the financial sector.

But all these should come out after committed national debates, involving the representatives of the bank employees as well.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

More Stories on : Letters | Credit Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sonia's choice

CFO may give evasive answers to CEO's tough questions

There are poachers everywhere

Law in totidem verbis

There's competition in fearing competition

The high and low of Delhi drama

Sonia shames power-hungry politicians — Hard choices before Manmohan Singh

`CA Bill made in haste' — Mr Sunil Goyal, ICAI President

A tightrope walk