Letters to the editor dated October 29, 2019

Infosys is by now too familiar with the whistleblowers’ claims, and has had a disproportionate share of adverse corporate publicity compared to its peers along with a fall in its stock value. In this unsettling situation, a Vishal Sikka-like deja vu could result in a major setback for Infosys. In that episode, internal and external inquiries unanimously cleared the then Infosys head Sikka of misconduct during the acquisition of Panaya. This episode too, may well turn out to be unfounded, but the damage has already been done in the market. The founders must quickly provide reassurance.

Mumbai

Apropos ‘Making palm oil a ‘sustainable’ crop’ (October 29). Since palm oil is a major import for India, it must be streamlined in coherence with the global norms for imports — particularly to ensure sustainable supply from the exporting countries.

Since the exporting twin countries are facing charges such as deforestation and the releasing of mill effluents which pollute environment while making palm oil, they have the onus to go for sustainable practices.

The Round Table on Sustainable Palm Oil has established the standard for sustainable palm oil, which exporting countries are adopting. In the same way, importing countries must also adopt global standards for sustainability in order to obtain palm oil without the hiccup of degrading the environment.

Similarly, for domestic production of palm oil also, India should adopt sustainable practices. The global palm oil supply chain is in dire strait and needs a revamp in all its dealings.

Sivakasi

This refers to ‘3 years of IBC: Only 6% of cases resolved so far’ (October 29). In spite of the implementation of the Insolvency and Bankruptcy Code, the bad assets conundrum continues to persist in the banking sector, not just inflicting the financial health of lenders but also economic growth across the country. The IBC, which came into existence as a legal measure to speed up the realisation and resolution of bad loans, is failing to deliver the intended results.

The over-dependence on the IBC is proving costly for banks. Meticulously monitoring and following up on the credit soon after its delivery is critical to avoid the chances of the accumulation of overdue payments. Recovering the overdue amount on time is imperative to stave off legal recourse against the defaulter. Legal recourse is not beneficial to the bankers, as the legal process is time-consuming. Banks have to ensure continuous asset quality review to prevent the accounts from turning into non-performing assets. Despite various tools available with banks to control the utilisation of funds by the borrowers, the diversion of funds is not uncommon. The oversight of the banking regulator on lenders and the examination of the loan accounts by the auditors and inspectors have to be tightened.

Kottayam

This refers to ‘Baghdadi’s death not necessarily the end of ISIS’ ( See thehindubusinessline.com, October 29). One tends to agree with its views that the death of Abu Bakr Al-Baghdadi, triumphantly proclaimed by US President Donald Trump, does not mean the savagely violent jihadist group ISIS is finished. In fact, as the article suggests, there is a living example of this point in Al Qaeda, which has maintained presence even after its founder Osama bin Laden was ‘taken out’ by American special forces in Abbottabad.

The suicidal ‘exit’ of Baghdadi after being trapped in a tunnel by US troops is no small feat. However, it also goes without saying that the UN-declared terrorists should also be similarly ‘eliminated’.

For sure, any ‘selective’ stance in its ‘war on terrorism’ may never be justified.

Panchkula

COMMENT NOW