The article “The ‘new normal’ is abnormal” (Business Line, December 17) deserves to be read by policymakers for its new approach to inflation. The man on the street is not bothered about the analysts’ views on inflation. How long can the poor people suffer rising prices, that too of food grains and other daily necessities?

The world has witnessed “Occupy movements” in Wall Street and London Stock Exchange as a protest against the rich people controlling a major portion of wealth of nations. Indians can commence a similar “Occupy RBI”/“Occupy Finance Ministry” movement against inflation. Only this type of protest can force authorities to rein in the malaise.

The simple truth is that many belonging to the poorer sections cannot make both ends meet, despite paltry increases in their earnings. Initiatives must be taken to reduce the prices of essential commodities.

K. V. Rao

Bangalore

PSB consolidation

The article “Public sector banks, consolidate now”, (Business Line, December 17) has brought out the need to consolidate, especially to shore up the capital base of banks.

The whole exercise should be based on making Indian banks embrace Basel III in the best possible manner. The ideal thing, in the context, is for the seven big public sector banks to take over the remaining mid-sized and small public sector banks.

State Bank of India can, however, be left alone to merge its five subsidiaries with itself.

Further, the combinations for bank mergers should be such as that it should take into account the geographical locations of banks concerned.

For instance, a bank based in west should preferably seek alliance with south- or east-based banks.

The restructuring of branches post-merger will be a lot easier.

S. Umashankar

Nagpur

(This article was published on December 18, 2012)
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