This refers to the report ‘Bad loans remain a worry, burden tax payers: Rajan’ (May 15). A big chunk of the non-performing assets (NPA) for the year ending 2015-16 would be the restructured accounts that remained hidden in the system for many years enjoying regulatory forbearance.

Most of these stressed loans pertained to sectors such as power, construction and aviation, mining or other infrastructure which are carried forward NPAs and were classified as standard assets in the name of regulatory forbearance.

Some became stressed assets 7-10 years ago. Recovery efforts in respect of them would have started long back, but for restructuring and being named as standard instead of NPA.

Now the RBI has taken a bold decision by asking banks not to hide the NPAs in the name of restructuring as per the international best practice. If RBI the stands firm without granting concessions in asset classification, the burden of NPAs will slowly come down in the years to come.

Rugmani Vinod

Thiruvananthapuram

Have more DRTs

Bad loans affect depositors more than general taxpayers. Due to default, the real return to depositors becomes meagre or negative.

Though it is often talked about toning up the appraisal machinery, nothing concrete has been done at the ground level.

If the intention of the borrower is bad, no amount of appraisal can save the bank.

Restructuring of loans has resulted only in postponing the problem and it is haunting the industry now. One way to respond to the problem is by increasing the number of debt recovery tribunals substantially on an urgent basis. The RBI governor can persuade the government to open more DRTs.

S Kalyanasundaram

Email

Bad maths

The alleged arithmetical error found in the Bangalore High Court judgment acquitting former Tamil Nadu chief minister J Jayalalithaa has provoked an outcry all over the country.

The basic reason for this is the lack of knowledge of finance. Finance is not simply counting money or adding and subtracting figures. There are two basic principles in finance: profitability (generally understood) and cash flow. An enterprise may be making profits, but if it fails to generate enough cash, it will die.

If there is an allegation of wrong surgical procedure resulting in the death of a patient, the judge seeks the expert view of a medical practitioner. In the same way, where there are allegations of financial irregularity, the judge should consult a financial expert.

Subramanian

Chennai

One for all

There is a case not only for uniform school leaving exam but also for entrance exams for various courses and college exams (‘A case for uniform school leaving exam’ by Rajkamal Rao, May 15).

For instance, for admissions to engineering colleges, CBSE conducts an entrance exam as per its curriculum, which is different from many State board systems, and most students are forced to appear for entrance exams conducted separately by many universities. This is harassment as it involves huge amount of exam fee and extensive preparation.

Even before the results of 12th exams are out, many colleges end admissions and collect fees with a view to making fast bucks. Uniformity is needed in all exams in the country.

M Raghuraman

Mumbai

This won’t work

A revamped CBSE as the sole examining body for X and XII classes may be desirable but the idea won’t work. India is too big a country to accept one-size-fits all concept in education. It would require uniform school curricula throughout the country, which is unfeasible; education is a State subject. The competition among millions of students would put them under stress. Rajkamal Rao does not give convincing reasons to prefer a revamped CBSE over other boards.

Before we go for one board for school exams we need to do much more, starting with uniform infrastructure and teacher quality.

YG Chouksey

Pune

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