Credit growth

The sluggish credit growth in banks, especially public sector banks (PSBs), is due to multiple factors — demonetisation, GST, myriad NPA classification norms, an over-active vigilance machinery and, of course, the series of scams.

While PSBs have become credit-shy, private sector banks are upbeat and claim that their loan books are growing at the cost of PSBs and are confident of garnering 50 per cent of the total business volumes. The underlying reasons are that private banks do not come under the ambit of CVC, whereas PSBs are monitored by the CVC and any commercial decision at a particular time is viewed with suspicion in a changed environment.

Banking requires proactive business decisions and risk-taking is a part of any decision. A successful banker knows how to maximise business opportunity for the bank without breaking the rules. Though repeated assurance about upholding bona fide decisions are given, when it comes to investigation and vigilance, even minor deviations that are highlighted.

Credit growth cannot happen overnight. Unless the confidence levels of managers are restored, it will be hard to see results. While active banking lands managers in trouble many a times, passive banking is rewarded on the premise of no default.

While banks give priority to NPA recovery and arresting slippages, little emphasis is given to increasing the loan book.

The art of lending can make a comeback through a change in focus. While bona fide actions should be supported, mala fide acts should be punished.

Madurai

This is with reference to the news report ‘Stormy LS drowns no-confidence bid, yet again’. The legislators should not stop proceedings of Parliament just because they want to settle their personal/political scores. If the political parties have differences of opinion on important issues, they can be settled through debates and discussions. The clearance on vital pending Bills is important. The people elect the legislators with the hope they will solve their problems. India is a vast country with multiple problems like unemployment, poverty, border security, etc. The interests of the country should be upper-most in the minds of our leaders and the precious time of Parliament should not be wasted on petty issues.

Thane

In 2016 when the Banks Board Bureau was formed with Vinod Rai as its chairman, it was told that the board would look at the performance of public sector banks (PSBs), reforms in the banking sector, appointment of bank CEOs, and capital requirements. But so far nothing has emerged from it. The government doesn’t seem interested in meeting the BBB chief to discuss some of the reforms the Board has proposed for the banking sector. This callous attitude of the government shows how serious it is about banking sector reforms.

Bheemavaram, AP

This has reference to RJD chief Lalu Prasad being convicted in another fodder scam case. People who initially sympathised with Lalu are now convinced of his wrongdoings. No one is above the law. Lalu had enjoyed complete immunity from courts and justice during the UPA regime.

Finally, rampant and egregious corruption is being penalised. However, given the magnitude of the scam, the fine is inadequate. Though all politicians are not corrupt, even a few can contaminate the system and eat away public money. So there has to be some independent law-enforcing agency that can punish even top guns in the government machinery if the allegations against them are proved.

Ahmedabad

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