Letters to the editor dated September 29

This refers to ‘Right call by EC’ (September 29). The outcome of Bihar assembly elections is a foregone conclusion with the incumbent government likely to have a seamless walkover as opposition has lost the plot. The main opposition party, RJD, without Lalu Prasad as a key campaigner, is not able to capture the voter’s imagination as his son does not measure up in any trait of his father. The chances are that it may cut a sorry figure so much so that it may lose the status of regional party as per ECI norms, which in the past was vying to become a national party.

Chennai

The Bihar polls are going to be a litmus test for the election commission and local administration. Maintaining safety and social distancing during elections is anything but easy as there are more than seven crore voters in the State and though the EC have arranged masks, sanitisers and PPE kits, it will be challenge for the local administration to ensure that no election booth is crowded and proper social distancing is maintained. Since it is the first state election during this pandemic, hence the whole country will watch the proceedings and take lessons from it.

Noida

This refers to ‘Why privatisation of PSBs won’t work’ (September 29). The author, while subscribing to the need of government ownership of banks, had projected only one side of the research paper. Nowhere in the paper the authors had advocated total transition into private hands. They had advocated some checks and balances like post-government relinquishing its 50 per cent stake, the need to exercise some oversight through its directors, the importance of a strong financial sector investors with equity stakes to strengthen governance and to avoid selling a bank to a corporate house, etc.

Looking at the flip side of the government ownership, the entire banking sector has more than 7 lakh crores in NPAs, with PSBs accounting to the majority of them. Post-Covid, this figure is expected to go up. After 50 years of nationalisation, PSBs have become vulnerable to banker-corporate-political nexus in day to day functioning of banks. Overall the ills of nationalisation have surpassed the benefits derived out of nationalisation.

Chennai

The problem with public sector banks is inefficiency coupled with unprofessional approach in the matter of loan appraisal, monitoring and recovery leading to mounting NPAs and erosion of profits. Favouritism and the interference by the ruling party in the management of affairs of the bank and the subservient attitude of the top management have contributed to the poor performance of PSBs. Indian PSBs can be run efficiently without privatisation only if government adopts hands-off approach and banks are governed professionally.

Nagercoil

This refers to ‘1991 reforms for India, 2020 reforms for Bharat’ (September 29). The farm bills are here to haunt the nation for a long time to come. As it stands, the government, through these bills, has been quick to take away its protective umbrella, leaving the farmer open to inclement market weather. In the bills there is not one whiff of an MSP and neither a mechanism of price discovery nor of oversight to pre-empt his exploitation by purchaser cartels.

Navi Mumbai

This refers to ‘Delay in new MPC sending wrong signals, say analysts’ (September 28). MPC serves a very critical advisory role in setting monetary policy and ushering growth in the economy. This delay in constituting the new MPC reflects poorly on both the government as well as the RBI leadership. While the past track record of the MPC is not exemplary, there is no doubt that the blend of industry, academic and RBI representation in the MPC provides fresh insights in setting monetary policy. One hopes this is not whittled away.

Chennai

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.

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