Growth woes

This refers to the article “Stop this dithering on banking reforms” by SS Tarapore (October 17). At a time when the Government is looking at fiscal consolidation how could it provide the required capital to public sector banks to grow in a healthy way? The rationalisation of subsidies has not happened in a meaningful way and the country has already reached 69 per cent of the projected deficit. There is no good news coming from the disinvestment front either. These show how this new government is moving in its early days in power. FDI in defence at 49 per cent is the same as when it was 26 per cent; what is the difference? Bank holding company idea was floated in the early days but no word on it now. Having the required majority, this government should move decisively on these fronts for us to start growing again.

As well articulated by Radhika Merwin in her article “Lower interest rates can hurt” (October 17), we need to revive growth to get out the mess we are in. The real rates have turned positive and the inflation will come down because of the cooling of global oil prices. Where is the new government’s part in all these global developments? Better they start or else we can never get out of this below potential growth which is actually hurting employment and millions of our young lives.

CR Arun

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The two articles “Stop this dithering on banking reforms” and “Lower interest rates can hurt” are highly informative and educative in today’s economic environment. The question whether the PSBs should have more or less of the Government’s participation is a topic requiring a deep analysis of the various factors that control the efficient performance of the banks by an expert group. There are certain aspects of the performance of the PSBs which call for urgent attention — such as the customer-friendly operations and greater alertness on a profitable working. Many PSBs now have high share value indicating their operational popularity.

Radhika Merwin’s view that lending rates can hurt growth is liable to contest. In an economic environment except where corporates are well-placed in operational financial situation, there is greater need for lowering lending rates to boost the industrial and commercial sectors since profitability is a factor influencing the expansion of existing units and start of new industries. Even the GDP in one way depends on the credit outgo and growth of companies and establishment of newer ones.

TR Anandan

Coimbatore

Please don’t cap

The decision to put a cap on the number of monthly ATM transactions is not a welcome move. ATMs are primarily a value-added service and intended to wean way the customers from the brick and mortar set up. Looking to the high real estate cost in metros, banks had to go for a minimum floor space for its branches. Instead of looking to ways to enhance its usage, restriction is not the right step.

L Rangarajan

Chennai

Keeping time

The report on the closure of HMT (October 14) triggers off many memories. In those days, HMT was synonymous with watches, and like in many others’ lives, the brand has made an indelible mark in my life too.

I am part of a large middle-class Malayalee family of seven brothers and two sisters. My father was a polio patient and mother a housewife. My eldest brother was a teacher. He was our de-facto parent and did his best to give maximum education to all the family members while keeping aside his personal priorities. He didn’t have a watch, a luxury then, like many of his peers, as he once took a vow that he would wear a watch only when all his siblings could afford one. I am the youngest in the family. After completing my SSLC and a year’s practice of typewriting and shorthand, I went to Madras where I got a job in a trading company. When I decided to visit home after a year, I had no hesitation in my mind as to what I should gift my brother. He was in tears with happiness when he opened the packet (an HMT watch costing ₹85 at that time) as it was the most satisfying moment in his life. Though he accepted the gift, he commented “Till now, I lived without a watch; you are all going to office and you need one. You can take it back”. But I insisted, and he kept the watch in his drawer with a sense of pride.

It is pity that a company which was in the commanding heights till a few years ago was unable to read the writings on the wall and ultimately led to an unsung demise.

PP Kuttikrishnan

Palghar, Maharahstra

Right labour

The Prime Minister’s attempts to reform labour laws are a step in the right direction. The move to introduce a universal account number (UAN) for PF account holders and the efforts to eradicate licence raj are also welcome. There is also the imminent need to curb corruption and red tapism in all walks of life to establish a corruption-free society.

D Suresh Babu

Hyderabad

Lord’s words

If the CBI feels aggrieved by any disparaging remarks made by a special judge against agency officials probing the coal scam case, when he rejected the closure report filed by the bureau against a company (October 16), that would be surely appealable. Judges need to be moderate in their language when they disapprove of actions by a guilty party, just like any critique of a judgment should be restrained in language. Such moderation is more necessary when judges make remarks on persons who are not parties in the court proceedings. The reward for judges doing so is the respect they earn among litigants and in the legal fraternity.

R Veera Raghavan

Chennai

Ebola’s message

The outbreak of the lethal epidemic Ebola has not elicited adequate response from the global community. Whatever was done was restricted to West Africa. Now with one casualty and two cases of Ebola infection in the US it is being responded to with alacrity.

As is known, there is no vaccine against Ebola infection. Nor there is a drug to effect a cure of this life-threatening disease. Naturally, people are scared and want governments to take positive steps to prevent its spread. Pharmaceutical companies follow ‘a wait-and-watch policy’ to fund research to produce a vaccine and a drug and make windfall profits.

The WHO has alerted that the rate of infection might double monthly and exponentially at that. India cannot afford to be complacent or ill-prepared to combat the scourge in case it reaches its territory.

G David Milton

Maruthancode, Tamil Nadu

A relief, for many

The Supreme Court has given the AIADMK supremo Jayalalithaa temporary relief in the form of bail. Also heaving a sigh of relief will be the Karnataka State administration, which hitherto somehow managed this highly popular figure’s detention. Now, the AIADMK must make sure there are no law and order problems over the issue as it had given its word to the Supreme Court.

VS Ganeshan

Bangalore

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