In the editorial ‘Do or die’ (December 30), public sector banks due to their increasing social responsibility and growing non-performing assets are finding it difficult to improve performance.

Can PSBs compete with new generation or foreign banks? While most new generation banks have their branches in the urban or semi urban areas, PSBs function with a large number of branches in rural areas which have a low per branch business volume.

PSBs are guided by social objectives, lending to weaker sections at base rate or even lower interest rates. Perhaps, the large volume of bank branches, low business volume per employee, slow progress in implementing technological innovations, helplessness in outsourcing time consuming procedures like loan processing and recovery are the main causes for banks’ low profits.

Perhaps it is time for RBI to give special treatment to PSBs. It is also time to review the functioning of new generation private sector banks and foreign banks and impose strict guidelines for social responsibility.

Mathew Abraham

Thiruvananthapuram

The discussion on the need for a revamp of the management of the system is an informative one. The concluding suggestion to the RBI “that rather than putting banks in a ‘do or die’ situation it is better to enforce a certain commercial discipline so that they remain operationally strong to meet the credit demands of a growing economy” is a valid call to RBI.

There should be a monitoring agency to ensure that the directions of the RBI are obeyed scrupulously.

TR Anandan

Coimbatore Undue cynicism

It refers to “Hold that applause for Modi’s visit” (December 30) by Pankaj Mishra. Landing at Pakistan suddenly to wish the Pakistan PM on his birthday was a very pleasant gesture on our PM’s part and it should go a long way in building a stronger relationship between the leaders, which will help ties between the two countries. Cynics may say he did not take country into confidence, but it was an innovative diplomatic gesture.

Now, it is Pakistan’s turn to reciprocate by taking action against the perpetrators of 26/11 Mumbai attacks and handing over Dawood Ibrahim.

If the Pakistan PM goes the extra mile, it can change our relationship and trade ties will get a major boost. We should not be over-critical of this gesture.

Bal Govind

Noida

All that gas

Regarding the report “Earn ₹10 lakh or more? No LPG subsidy for you” (December 29), subsidies have become major tools of vote-bank politics and that is why no political party has the courage to do away with them. The bitter truth is that the real beneficiaries of these two instruments of social and economic upliftment have not been the deserving — the downtrodden and the poor.

Earlier, Prime Minister Narendra Modi had requested all LPG customers to voluntarily forego subsidy on their LPG cylinders. Placing the threshold income at ₹10 lakh for the LPG is going to make little difference to the country’s huge annual subsidy bill estimated at ₹2,67,000 crore.

Anyway, charity must begin at home. Let our MPs set an example by paying the market price of the food served to them at heavily subsidised rates in the Parliament canteen and foregoing subsidies meant for them.

MC Joshi

Lucknow.

Journal goof-up

The Congress party is placed in an embarrassing situation with its own mouthpiece ‘Congress Darshan’ in Mumbai carrying out a series of articles demeaning leaders like Sonia Gandhi and Jawaharlal Nehru.

The articles allege ‘inept’ handling of the first PM of Jammu and Kashmir. They were more critical of Sonia Gandhi, saying she became the President within 62 days of becoming the primary member of the party. As expected, the editor was sacked. With this act can the party wipe out the charges made by the author?

Such articles are a God-send, no less, to the BJP/NDA camp.

HP Murali

Bengaluru

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

Published on December 30, 2015