FPI inflows

This refers to ‘Quality of FPI inflows is improving’ (July 4). A well-researched and carefully analysed piece, taking into account data for the last 12-15 years along with various pieces of legislation that have affected the manner, method and quantum of FPI inflows.

Bengaluru

Rahul Gandhi’s refusal to continue as Congress president and nominate his successor is reflective of his personality. Winning or losing an election is part of the political game. By no means is it a measure of whether what you represent is right or wrong. If the coming back of the Congress did not happen, it was not Rahul’s failure. Still he took responsibility for his party’s debacle. No leader or party could have done anything differently and more rewardingly in the face of the resurgence of religion. It was true that at times Rahul Gandhi stood alone to fight the BJP and Narendra Modi. He did it without hatred or anger. In fact, he had to fight the entire state machinery. That the setback has not diminished his resolve to fight the divisive RSS ideology is worthy of a great leader.

Maruthancode, TN

The current monsoon session of Parliament has seen the clearance of certain key Bills, including those related to Special Economic Zone and the Indian Medical Council. Further, the Ministry of Parliamentary Affairs has been asked to share the details of all the Bills passed, amended or introduced, including private member Bills, through a comprehensive list published daily in local newspapers and regional newspapers. Also, the Press Information Bureau portal will carry updates specifically announcing the list of Bills presented in the current session on a regular basis. Such a positive and proactive move will help ensure that the citizens are well aware of the Bills passed by the respective members in every session of both the Houses.

Bengaluru

This refers to ‘Halfway house’ (July 4). It is good to learn that for public sector banks bad times will be over soon. But bigger issues need to be addressed so that banks can avoid such kind of scenario in future. For sound financial health of the economy we need both banks as well as NBFCs to perform well and cater to the needs of companies and individuals.

Asset-liability mismatch is one issue which has been bothering lenders for years now and howsoever we emphasise the need for a robust bond market to bridge that gap, it will never be enough. But sadly nothing much has been done to address this. Long gestation projects like infrastructure and power should not be financed through short-term deposits.

Indeed it would have been great if the Financial Stability Report had disclosed the names of housing finance companies and NBFCs or suggested a resolution plan. The Indian economy is in a tricky position and policy-makers need to address all these issues earnestly.

Noida

There are various reasons for the declining exposure of banks to student loans. From the early 2000s, there has been political pressure on public sector banks to disburse education loans and conduct loan melas for students. Though the underprivileged had access to higher education, the educational institutions, especially ill-equipped engineering colleges, exploited the situation and hiked up the fees. At one stage, the study loans were utilised to fund the infrastructure needs of engineering colleges. The RBI has come out with a series of guidelines, but most of them after the damage has been done. Many private engineering college have been unable to churn out employable graduates and this, along with the downtrend in the job market, has resulted in student loans becoming the top retail NPA of PSBs. The PSBs have developed cold feet due to raising delinquency levels as the beneficiaries, even those gainfully employed, shy away from repayment.

Madurai

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.

COMMENT NOW