PSB woes

| Updated on August 14, 2019 Published on August 13, 2019

PSB woes

This refers to the editorial ‘Wrong targets’ (August 13). The issues facing public sector banks are the government’s own making. Apart from corporate NPAs, most of the bad assets come under the category of government schemes. The government conceives an idea to please the masses and directs the PSBs to implement it without giving enough time to study the pros and cons of the scheme. The PSBs are forced to grant loans without verifying viability or carrying out a thorough credit appraisal. There are instances where entrepreneurs also lose steam halfway through and wind up projects. Most government-sponsored schemes have met the same fate since the time of the IRDP and the PMRY, or wherever a subsidy component is involved. If a study is conducted into the amount involved in all such schemes put together, the findings will be heartbreaking. What the government can do in such cases is appoint an agency of experts to study each case thoroughly, identify serious entrepreneurs who are capable of undertaking the venture and direct the nearest bank to finance it.

It should be the government’s responsibility as well to see the project through and ensure that the repayments are made promptly.

KC Varghese


Corrective measures

With reference to the editorial ‘Wrong targets’ (August 13), the 16 accountability KPIs proposed by the government to augment public sector bank performance is nothing but old wine in a new bottle. PSBs are the conduits for direct and indirect implementation of various government schemes. While there is a need to keep up the credit appraisal, risk management, and internal control measures in banking, it should be equally important to ensure the proposed reforms are not infected by policy paralysis and regulatory and political interference at every stage. Before inflicting any new scheme of targets, it is advisable to take corrective measures to address issues related to talent deficit, weak credit assessment, and the unhealthy practice of cross-selling other products by banks.

Sitaram Popuri


RERA awareness

This refers to ‘No place to call home’ (August 13), which was informative, carried a redress mechanism, and educated home-buyers/readers. RERA is definitely an answer. However, a lot of awareness must be spread about it. We need to have regular seminars on RERA in banks, new upcoming housing communities, and colleges. Regulators are doing their best, and if home-buyers attempt to understand the nitty-gritty of RERA rules provided by bankers and home-loan experts, it will lessen the pain points in future.

NK Bakshi


Political conflict

With reference to ‘BJP attacks Chidambaram over ‘provocative’ comments on Kashmir’ (August 13), there can’t be two opinions about the fact that the former Finance Minister P Chidambaram’s alleged remarks stating that the BJP wouldn’t have abrogated Article 370 had Jammu and Kashmir been a Hindu-dominated State, doesn’t behove a senior politician of his stature. Ironically, the top leadership of both the CPI and the CPI (M) has also jumped into the fray by questioning the rationale behind the Centre’s move.

However, it also goes without saying that despite the government’s determination to divide J&K into two separate Union Territories, the journey ahead may not be any smoother, but more so due to some inherent ‘internal’ factors rather than any ‘external’ ones.

Kumar Gupt


Quick redevelopment

Apropos ‘In the last 3 years, flood fury has killed 6,000’ (August 13), flood damage and human sufferings in all the States are both short-term and long-term in nature. The Central government should assist the respective State governments to rehabilitate the affected people. Equally important is redevelopment of infrastructure. The State governments should quickly assess fund requirements.

KU Mada



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Published on August 13, 2019
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