Banks’ dilemma

Apropos ‘Is CASA all that bankable anymore’ (March 25). Today banks are facing challenges in mobilising deposits to keep pace with the growing demand for credit.

Banks are forced to hike the interest rate on deposits, which results in the conversion of savings deposits into term deposits and a decline in the ratio of savings and current deposits to aggregate deposits.

To balance this banks either have to hike their lending rates or recover bad assets.

Banks are facing increasing competition in mobilising low-cost deposits and from UPI payment systems.

As savings deposits are unattractive in terms of return, no account holder will maintain a substantial balance in their account. Businesses with current accounts manage the funds in such a way as to minimise their cost of funds and therefore keep minimal funds to cope with the cash outflows.

It is a tough time for bankers to mobilise low-cost deposits, as such banks have to enforce more ways to check the growth of their cost of funds.

VSK Pillai


BJP’s southern outreach

With reference to the Editorial ‘Southern push’ (March 25), the BJP’s nuanced strategy in Southern States signifies a strategic recalibration to address the varied political terrains across the region.

By tailoring its approach to local contexts and sensitivities, the party seeks to penetrate regions historically less amenable to its ideology, potentially strengthening its foothold in Southern India.

The upcoming Lok Sabha elections will serve as a litmus test for the efficacy of these strategies, with factors like coalition-building, candidate selection, and issue prioritisation pivotal in determining the BJP’s ability to expand its influence in the South.

This adaptive approach underscores the party’s recognition of the importance of regional dynamics and its commitment to broadening its appeal beyond traditional strongholds.

Amarjeet Kumar

Hazaribagh, Jharkhand

This refers to ‘Export of Vande Bharat trains on the right track’ (March 25). The ‘Train 18’ named as Vande Bharat (VB) has been making rapid strides since its launch.

The Railway Ministry’s plan to manufacture Standard Gauge version of VB to meet the demands of South American nations and Broad Gauge version of VB to Spain, Portugal, Brazil and Argentina are remarkable.

The number of VB trains on track has now reached half a century. Two thirds of it has only eight coaches which is not in sync with the actual demands.

With the number of coaches restricted to eight for most of the VB trains, could be due to technical reasons, steps must be take to increase the coaches to 16 to cater to the rising demand.

RV Baskaran


Inspirational teachers

The ‘From the Viewsroom’ column made interesting reading.

Good teachers have an uncanny ability to make complicated concepts simple for the students.

Also, they impart values in the course of teaching lessons which are important for making students into responsible citizens. It must be remembered that students always love industrious and enterprising teachers.

It is these teachers who can inspire students and draw many to the noble profession.

S Ramakrishnasayee