Foreign investments

This refers to the editorial ‘Retail push’ (September 4). Relaxing FDI norms for single-brand retail is welcome, and it will invite foreign investment in that sector. But one thing to be noted is that the economy is already slowing, and the lack of demand challenges the liquidity of many firms which are fumbling even to service their institutional loans. At this juncture, bringing more foreign retailers will create acute competition in the retail market and will challenge the survival of the domestic retailers.

Sivakasi

This refers to ‘Attacks on doctors, hospitals may attract 10-year jail term’ (September 4). This is a welcome move and should be implemented immediately. Of late, the cases of assault on doctors has been on the rise and every right-minded person should condemn such acts. The condition of our government hospitals is pathetic, and there’s hardly any resources for their uplift. However, medical professionals cannot be held responsible for the pathetic conditions of the hospitals. It has also become a practice to assault the doctors when something goes wrong with the patients. This has to change, else the doctors will not be able to discharge their duties.

Thane

This refers to ‘ED arrests DK Shivakumar on money laundering charges’ (September 4). The arrest of the Congress’ key troubleshooter from Karnataka Shivakumar, who also happens to be the sitting MLA and a former cabinet minister, could not have come at a worse time for the party, given the recent detention of senior leader P Chidamabaram.

While Shivakumar was reportedly placed under arrest as per provisions of the Prevention of Money Laundering Act (PMLA), he has denied any wrongdoing. He went on to claim that he would cooperate with the ED in the probe.

However, Congress leaders in Karnataka and the party high command in New Delhi are crying foul and saying their colleague was a victim of vendetta politics, despite fact that the Karnataka High Court last week dismissed Shivakumar’s petition challenging the summons issued to him by the ED.

So, in all fairness, DKS should stop playing the victim’s card as has been the case with most of our political leaders whenever they are confronted with a similar situation. Moreover, the Congress should also avoid ‘seeing red’ in all such cases by squarely blaming the Modi government for illegal acts indulged in by its own party men.

Bengaluru

The consolidation of public sector banks was extensively debated for a long time but without any concrete result, essentially due to a lack of political will. The BJP government has now displayed that political will and come out with a ‘big bank theory’, which, coupled with the introduction of a host of several other measures, including tax sops for certain sectors, are expected to further strengthen the Indian financial system and take the growth process forward. The merger of 10 PSBs into four mega entities is a historic move that reflects the government’s strong intent to realise the dream of India becoming a $5-trillion economy by 2024.

What is needed now in this changed globalised economic milieu is a small number of bigger banks instead of a large number of smaller banks. Big banks have a larger resource base and a higher risk-bearing appetite to take on the emerging challenges with relative ease, while small banks with limited resources can pose systemic risks. Ideally, for a country of our size, we will need to have at least eight stronger global-sized lenders that, amongst other things, have also the ability to fund cross-border acquisitions, which are fast gaining ground in this globalised environment.

Nagpur