Bonds push

With reference to the Editorial "Forced bonding", it is an open secret that the major mismatch in asset liability and poor project assessment have led to NPAs in power, infrastructure and other large scale project lending in the last few years. To prevent this in future a comprehensive bond market is need of the hour. But making it mandatory on corporates to avail themselves of 25 per cent of their total credit need through bonds is not justified. Company’s are free to tap credit from various sources, keeping the cost of credit in mind, but with SEBI’s latest order, corporates will have to vie with central and state governments for bonds. It may also not be the cheapest option for them and that in turn will impact their bottomline. Allowing entities managing infrastructure projects to issue bonds is a sustainable solution.

Noida

ARCs and the NPA disease

With reference to “ARCs cure may compound NPA disease” (July 16), many banks are going for high cost bulk deposits owing to surplus liquidity which has led to the NPA problem.

Disturbingly banks are also struggling to keep the delinquency level in education loans under a manageable level. It is reported that Indian families spend over ₹65,000 crore every year, in funding the education abroad. .

As far as higher education is concerned, quality is becoming a victim of quantity. The Centre and the States have a responsibility to ensure that the smooth recovery of education loans. Just directing or prompting banks to lend to students, without the requisite safeguards can lead to trouble.

Instead of commercial banks providing student loans, why not start a dedicated bank to cater to the educational needs, both in terms of college infrastructure as well as student loans? This could even make the process of recovery easier.

Bengaluru

The high level of non performing loans is due to combination of many factors, some of which are beyond the banks’ control. The credit committee decisions are taken based on the current market environment which may not work out for the future. Banks, while extending loans, cannot second guess the future market conditions. They do not have the benefit of hindsight. There is a growing feeling now that honest bank officials are being victimised and that is causing a great deal of heartburn and agony in the industry. The objective of the investigation agency is to probe whether there were any malafide intentions involved and even while conducting the probe it must ensure that no reputational risks caused to the bankers. The confidence in public sector banks is now at a historically low level and government must address this issue right away.

Nagpur

In one of the most entertaining and action-packed finals for decades France, a “mini-United Nations” of football talent and attitude (about two-thirds of France’s FIFA World Cup 2018 roster included players with immigrant backgrounds) showed flair and nerve to hold off a fighting band of Croatians 4-2, and win their second World Cup — 20 years after Zinedine Zidane had led Les Bleus to their first triumph at home. Of course Croatia’s never-say-die spirit and pressing ability did take them to a maiden final but the adaptability of France won them the World Cup.

Yes,it was a breathless end to the month-long roller-coaster ride of Russia 2018 — a World Cup of shocks, heartbreaks, historic firsts and new heroes.

Bengaluru

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