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The main reason for inflation is greed (“Mystery of the mangled rupee”, Business Line , September 9) . A 1BHK flat owned by an NRI in a decent locality in Bangalore fetched a rent of Rs 7,000.
Now, the NRI, earning in Canadian dollars, expects a rent of Rs 10,000 from a new tenant. Similarly, a 2BHK flat in the same complex, which went for Rs 15,000-17,000 a year ago, is now Rs 24,000. This artificial cycle goes on and on and on and we call it inflation.
Sudhir Anand
No accountability
In India there is no accountability (“CAD mess, a result of free imports”, Business Line , September 12), nor does the media have high expectations. The media must confront ministers on television and question them on the state of affairs.
Shashi Kant Mittal
Unwarranted
The article titled “Criteria for new banks” (September 11) by S. Balakrishnan makes a veiled reference to our group, which is factually incorrect and highly misleading. Section 2L of the RBI Guidelines for Licencing of New Banks in Private Sector Banking stipulates that “the activities undertaken by the NBFC, which banks are allowed to undertake departmentally, will have to be transferred to the new bank.”
In accordance with the above, Reliance Capital intends to transfer its commercial lending business to the proposed bank — indeed, there is no choice in the matter.
As a result of the transfer, Reliance Capital’s own debt will come down by Rs 15,000 crore, as the same is an integral part of the lending business and will stand transferred along with the corresponding assets to the bank.
Incidentally, Reliance Capital’s existing debt:equity levels are a conservative 1.7:1, and, but for the above legal requirement, there is no compulsion or need to reduce the same in any manner.
The columnist’s suggestion that our foray into banking is to reduce our group debt is unwarranted, to say the least.
Sharad Goel
Chief Communications Officer,
Reliance Capital
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