Letters

Exit of Chanda Kochhar

| Updated on October 05, 2018 Published on October 05, 2018

This refers to ‘End of Chanda Kochhar era’ (October 5). The quid pro quo entertained by Chanda Kochhar in handling the loan proposal of Videocon group is a steep fall from grace of a world renowned and powerful woman executive, who enjoyed pre-eminent status in the financial world.

Coming to the larger issue, the unwise closure of DFIs (development financial institutions) by the powers that be is the single most important reason for the present predicament of non-performing assets being faced by banks. The shutting down of DFIs compelled banks to lend long, though the sourcing of resources through deposits was not in alignment as far as tenor was concerned.

Many commercial banks, ICICI Bank included, after burning their fingers in retail lending, embarked on infrastructure and project financing with relatively longer tenors. They encouraged companies to take loans without any specific commercial or tangible asset-creation purpose. These type of borrowings facilitated corporates to divert the funds, resulting in illiquid financial portfolios with banks.

Over-pampered personalities like the then heads of ICICI Bank and Axis Bank went ahead with business expansion without adhering to lending disciple, causing big problems to their institutions.

RS Raghavan

Bengaluru

In the male-chauvinistic corporate world, charismatic women like Indra Nooyi and Kiran Mazumdar Shaw have excelled and succeeded in taking their respective businesses to new heights.

The allegations levelled against Chanda Kochhar, the former CEO of ICICI Bank, should not be allowed to overshadow or underrate her endeavour in building such a dynamic bank. It is a tough and testing time for the Indian corporate sector, where the cases of beleaguered entities are surfacing every month.

Some businesses, which once appeared to be flourishing and thriving, are floundering now due mainly to inefficient management. The people at the helm of any business are expected to be the upholders of business ethics, without giving any room for self-interest or conflict of interests.

Be it the case of Satyam, Kingfisher Airlines, ICICI Bank or IL&FS, the chief cause for failure is poor corporate governance by the top management.

S Lakshminarayanan

Cuddalore, TN

Fuel price cut

The Centre has cut fuel prices by ₹2.50 per litre, but the hard fact remains that the country would continue to import nearly 80 per cent of its crude oil requirement. High fuel prices will slow down every sector of the economy. And, the drag on the economy may yet again usher in a fresh spectre of NPAs.

Therefore, cosmetic single-digit paring of fuel price will not help. It would be wise for the government to absorb substantial fuel costs by compromising on select expenditure, than take the risk of an overall economic retreat consequent to high fuel prices.

R Narayanan

Pune

 

Welcome move

The recent move to introduce Air India flights between Bengaluru and Mysuru is a step in the right direction. This will improve Mysuru’s infrastructure and boost tourism especially during Dussera.

As the Civil Aviation Ministry has decided to introduce flights under UDAN scheme for a short period of time, it is time now to look ahead and continue with the arrangements of permanent flight connectivity to Mysuru. This is also the right time to connect Mysuru with other parts of the country.

Currently, Mysuru is connected by air only to Chennai. This move will also attract international travellers to Mysuru.

Through regular movement of flights at Mysuru, the current airport infrastructure may get a boost with the Ministry’s NABH (Nextgen Airports For Bharat) Nirman initiative and UDAN schemes. This will also serve as an opportunity to expand the airport and accommodate wide-bodied aircraft, like Airbus and Boeing, which will help to serve long-haul flights and connect to international sectors directly.

Varun

Benglauru

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Published on October 05, 2018
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