With reference to“The RBI’s inflation obsession”, ( Business Line , October 26), there are some things the new governor must keep in mind when he makes the October 29 announcement.

One-third of all NPAs of PSBs were contributed bythe top 30 NPA accounts in each bank. Deregulation of savings bank interest rates did not add to the interest income of real SB account holders. The net interest margins enjoyed by banks in India are among the highest in the world.

The theory that interest cost is not the major ingredient in project cost is interpreted to mean that small borrowers can afford to pay higher rates of interest. Big depositors get preferential rates of interest and big borrowers get attractive terms for borrowing.

M. G. Warrier

Mumbai

Record charges

With reference to Viewpoint ( Business Line , October 26), our prime minister must have created a record: whether it is the nuclear deal or 2G spectrum or coal mines or cash for vote, he has failed to clear his name. His claim of being honest sounds phoney.

R. Nandakumar

Chennai

Absolutely apt

The views expressed in “Bank on India Post” ( Business Line , October 25) seem apt. Using the services of India Post is the most effective and rapidly deployable solution for financial inclusion of unbanked/underbanked India. India Post should most likely be able to find it commercially viable. All other models/attempts seem to be struggling due to lack of financial viability.

It is hoped that once RBI approval comes, the commercial viability of the banking part of India Post may lead to a revival of its core activity: courier services, perhaps in a modernised version.So here’s looking forward to India Post V 2.0

Narendra Puppala

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