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| Updated on December 18, 2019 Published on December 18, 2019

NPA crisis

The article ‘Some key lessons from the NPA crisis’ (December 18) is informative and a wake-up call to the government. NPAs are a highly problematic issue for the banking sector and even with a lot of efforts there hasn’t been any significant reduction in bad loans. The suggestion on ‘assurance systems’ are pragmatic and worth adopting. It is necessary to strenthen internal and external audits and credit rating systems. Diversion of loans to other areas must be prevented.

TR Anandan

Coimbatore

Reducing bad loans

Banks are the custodians of public money and the same should be used in a prudent manner. Political meddling is one of the main causes for stressed assets in the banking sector. It should be entirely left to the discretion of bankers whether they want to finance a company or restructure a loan and there should not be any political pressure on the banker. The mounting non-performing assets in public sector banks should be dealt with firmly by the Finance Ministry and the RBI. Loan waivers have also placed a heavy burden on the banking sector. Most of the loans are either waived with an eye on elections or for meeting the demands of various political parties. In India, we need more banks which will lend to poor farmers and small entrepreneurs who mainly depend on moneylenders who in turn squeeze them with high rates of interest.

Veena Shenoy

Thane

Climate change

This refers to the editorial ‘Promises to keep’ (December 18). The climate ministerial at Madrid has failed with little commitment on emission reduction despite the dire need to control global warming and its consequences. There is no enthusiasm among member countries, especially the developed nations, who signed the Paris accord. The US pulling out of the accord and the lethargic attitude of other countries in fulfilling their commitments are the reasons for the weak response to carbon credits and rich nations not transferring enough funds to the poor to meet the climate commitments.

NR Nagarajan

Sivakasi

MTNL-BSNL merger

The recent merger of state-owned telecommunication service providers MTNL and BSNL is a welcome move as the two were incurring humongous losses. The merger will definitely create synergies and both can exploit the core competencies of each other. Additionally, the top management of the entities should not coerce their employees to go in for VRS. Around 90,000 employees have already opted for the same on their own accord.

Harminder Singh Gumbhir

Lucknow

Postal system

This refers to ‘When technology threatens to stamp out post card, inland letter’ (December 18). While the present state of our great postal system is painful, it has less to do with technology and more with attitudes of employees.

A visit to a post office is an eye-opener. Firstly, these offices are open generally between 10 am and 4 pm, a time impossible for a working person to visit. Here, the deep rot in the work culture is on full display. And, secondly, the postal department will earn income by selling more stamps and stationery. It should franchise small shops to sell these for a commission. See the number of outlets of courier companies. Policymakers must embrace reforms and use technology, not blame it.

V Vijaykumar

Pune

Callous comments

Apropos ‘Not my job to protect Railways: Mamata Banerjee’ (December 19), it is indeed a shocking statement by the head of an elected government. The Bengal Chief Minister is duty-bound to safeguard public property, irrespective of its proprietorship, from vandalism even though she has the fundamental right to protest along with her electorate. Instigating the public to take law into their own hands may work well in the interim, but will boomerang in the course of time as the public will soon realise their folly and hit back.

Rajiv N Magal

Bengaluru

Published on December 18, 2019
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