Bank branch network

This refers to ‘Why banks are branching furiously’ (October 14). From the days of Lead Bank Scheme (with focus on priority sector and rural lending) and bank nationalisation, branch expansion/consolidation of branches happened for different purposes at different times in India. Time is opportune for a holistic approach to consolidation and expansion of commercial bank branches on a need-based basis.

There may be a case for merger or closure of some branches in cities and towns while the big and small banks should be prepared to open more branches in semi-urban and rural areas, where the clientele may take more time to shift to digital banking.

MG Warrier

Mumbai

Relationship building

Contrary to the general notion, banks are expanding their branch network with greater vigour now despite digitisation dominating the industry. This expansion seems counter-intuitive when more than 90 per cent of the daily transactions take place outside branch premises. But the fact remains that it is essential for banks to open new branches. Personal contact is crucial for good customer service, a core banking principle. A warm smile and courteous human interaction will avert numerous complaints. In credit dispensation, branches play a vital role, right from on-boarding to end-use verification and follow-up, ensuring a robust portfolio. Branches foster relationships and build trust.

This hybrid approach will enhance customer confidence and drive business growth.

R Mohan

Kumbakonam, TN

India’s role in ASEAN

Prime Minister Narendra Modi’s visit to Laos last week to participate in the annual meetings of ASEAN as well as the East Asia Summit saw him reaffirming India’s call for military restraint and reminding world leaders that solutions to global challenges cannot be found on the battlefield.

China’s increasing military assertiveness is posing a challenge for ASEAN. Under these circumstances, India needs to leverage its sustained economic growth and growing military capabilities to take an affirmative position on regional security issues, which holds the key to ensuring its relative standing in ASEAN always remains high.

M Jeyaram

Sholavandan, TN

Build social capital

The article ‘Rules needed for spending on public goods’ (October 14) dwells upon an important aspect of public finance. The author’s take on mid-day meal scheme as good and low rail fares as bad should serve as an eye-opener for our planners. Investing in education and skill development adds to social capital while overly subsidising mass transport systems wastes away scarce resources. The need is for our politicians to rise above petty politics of winning the next election, and devise and actualise plans for the future generations.

Jose Abraham

Vaikom, Kerala