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The editorial ‘Not a open book’ (February 8) talks about the pros and cons of electoral funding through electoral bonds. However, the government could have done away with cash donations as it would be seen as an avenue for accounting black money through benami networks.
Vikram Sundaramurthy
Alapakkam, Chennai
Rate blues
This refers to ‘Not the right time to cut rates’ by Radhika Merwin (February 8). Repo rates are applicable only when banks borrow from the central bank to meet their temporary requirements. In the same way, reverse repo is applicable for surplus funds deposited with the central bank.
Deposit figures of commercial banks were ₹107,837 billion on January 20, and there is an addition of ₹13,196 billion in a year. Bank credit during the period increased by just ₹3,891 billion. Banks borrowing from the RBI was just ₹159 billion on January 20 against ₹1,620 billion a year ago. Under these circumstances, the policy rates cannot have any effect on banks’ lending rates.
Banks lending rates will depend on the liquidity in the market. Robust addition of deposits after demonetisation shows adequate liquidity, which pushes down the interest rate on credit as well as deposits. Now we have to be more concerned with interest rates on deposits and not on advances.
S Kalyanasundaram
There goes the king
This is with reference to ‘It’s the end of good times for Mallya’ (February 8). India is a poor country where ordinary people run from pillar to post for availing small loans to buy houses/vehicles and to start businesses. Thanks to his political connections and fortunes, Mallya was fortunate enough to get loans to the tune of ₹7,000 crore from various banks. He should not breach the trust the bankers imposed in him and must pay their dues. The PSU banks need funds for lending to small entrepreneurs, poor farmers, ordinary people in search of houses.
If Mallya siphons away a large portion of the bankers’ funds, the banks cannot finance infrastructure projects. A country with large scale unemployment, poverty, farmer suicides due to drought cannot afford public money to waste thanks to wilful defaulters.
Veena Shenoy
Thane
Storm in Tamil Nadu
The game of thrones in Tamil Nadu has taken on a curious turn with Tamil Nadu chief minister O Paneerselvam raising the banner of revolt against chief minister in waiting, VK Sasikala, and the latter removing him as treasurer. Paneerselvam’s allegation that he was insulted and sidelined by the senior party bosses after elevating him to the top post is disquieting. The chief minister hinting that he may withdraw his resignation if people of the State and the party cadres so insist is an indication that he is not going to go down without a fight.
NJ Ravi Chander
Bengaluru
One should appreciate O Panneerselvam’s courage to revolt against the party’s general secretary Sasikala at least now and speak his views frankly. Power is secondary. Self-esteem is first, which cannot be compromised. People may support OPS as the Chief Minister of Tamil Nadu in the present circumstances. But will he have the required legislators to support him? The ruling AIADMK is in a shambles!
S Ramakrishnasayee
Ranipet
Battle for UP
The UP election is poised for a nail-biting finish. All the three contenders for power (BJP, SP-Congress alliance and BSP) are sparing no effort to come to power. The Hindutva appeal no more pays great returns as it used to for BJP. The Modi wave has receded. The demonetisation drive has vanished from the BJP’s campaigns, even though the Prime Minister has made a feeble defence of it in the Parliament. The BJP’s “star campaigners” go into long rambles about their patent on patriotism. Akhilesh Yadav traverses the State with his reinvented image as a leader whose first priority is the State’s development.
G David Milton
Maruthancode, Kanyakumari
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