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The much awaited ordinance dampened the expectations of banks, borrowers, investors and the public. Bankers do not need a super banker to direct them. The present position of PSBs is due to the invisible hand of the finance minister.
The crux of the NPA issue is resolution by recovery or write-off. The top 50 accounts are defunct mostly due to wilful default. Instead of recapitalising, the Government can take over assets through PSUs in the respective sectors along with the provisions held and reimburse banks the balance amount. This will leverage banks to improve capital adequacy and use their resources to finance new businesses.
Allowing PSBs to fail is a wild idea as it will erode the confidence of public. The US government went all out to revive their financial infrastructure, which was in private sector and failed due to greed.
S Veeraraghavan
Coimbatore
Recently, banks have been somewhat reluctant to take any major credit decision and resolve bad loans or sell them to ARCs through settlement schemes with a haircut for fear of a probe by the CBI and the ED.
By promulgating an ordinance to amend the relevant section of the Banking Regulation Act and giving wide-ranging legislative powers to the RBI, the Government has done the wisest possible thing in the circumstances as it aims at expediting the resolution process and seeks to give an assurance to bankers by way of shielding them from subsequent action by probe agencies. The passage of parliamentary approval for the ordinance should hopefully be smooth by taking the Opposition into confidence. Quick justice should also be given to the honest IDBI bank officials arrested earlier.
Srinivasan Umashankar
Nagpur
Though the RBI is at liberty to appoint oversight committees it is doubtful whether it has the bandwidth to do an in-depth analysis of each account across banks. It is not possible to formulate a general formula to deal with all NPAs . The oversight committee should take the boards into confidence.
TSN Rao
Bheemavaram, Andhra Pradesh
Crime & punishment
The clapping in the court room on pronouncement of the death sentence in the Nirbhaya case found an echo across the country. Still, there must be the space for a different point of view on the punishment. To say that a life sentence could have met the end of justice is not to downplay the horror of the crime.
There is little evidence that the death penalty deters any better than a life sentence. The opposition to capital punishment comes from moral convictions, and a belief in the intrinsic worth of human life. Justice must be reformative, not retributive. The existence of the death penalty shows our place in civilisation. It is time the gallows were shifted from prison premises to the museum.
G David Milton
Maruthancode, Tamil Nadu
Follow RCB’s lead
The Royal Challengers Bengaluru have set high standards in spreading awareness on carbon emission and environment conservation. On Sunday the team not only rode a BMTC bus to promote public transport as part of its ‘Go Green’ initiative, it also played its last home match sporting green jerseys made of plastic bottle waste. RCB has spared no effort in raising environmental awareness ever since it initiated the green journey in 2010, and one hope this example rubs off on others.
NJ Ravi Chander
Bengaluru
Crude dress code
The dress code prescribed by the CBSE for NEET examinees isa difficult test for the centres as well as the students. The strict conditions will only the seeds of suspicion in the students, and affect their future. Trust, after all, is the basic ingredient of happiness. There are two invigilators in each classroom to prevent cheating. The sight of full sleeve shirts (sported by students) being cut off by staff at some centres testfies to the crudeness of the implementation of the dress code.
S Ramakrishnasayee
Ranipet, Tamil Nadu
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