Letters to the Editor dated March 17, 2020

| Updated on March 17, 2020 Published on March 17, 2020

Safe banking

This refers to “Here’s how you can measure the safety of your bank” (March 17). The RBI appoints statutory auditors of banks, who play an important role in contributing to financial stability when they deliver quality bank audits which foster market confidence. Against this backdrop, it is imperative to showcase these audit ratings in big branches for customers. These audit ratings will educate customers about the safety parameters of the banks. The RBI could also think of setting up a rating agency for banks. These measures would go a long way in strengthening banks’ workings.

NK Bakshi


Economic impact of virus

The report that the RBI will take steps to infuse liquidity (March 17) is welcome news. However, the public has no clear idea about the way in which the coronavirus might impact the common man, and the extent of the virus’ impact on the economy. The impact on trade and market functioning are somewhat known, but the actual effects on the common man are not clearly known. The precautionary steps to be adopted by the general public may help the people to face any likely eventuality impacting monetary field and the general market conditions.

TR Anandan


Market movement

With reference to “Mercurial markets” (March 17). The present tenacity of whimsical primary markets to raise unusual huge investor subscriptions, ultimately leading to distress sale of valuable national assets, should be used as signs to defer PSU disinvestment plans. Stock market dynamics are always unpredictable, and the present hype, built up on certain unrealistic assumptions without being backed by proven fundamentals and real-time asset valuations, may not be sustainable. The growing investment interest shown earlier by FPIs is impacted by virus fears.

At a time when the bearish sentiment is engulfing the worldwide stock markets, the investment appetite exhibited by QIBs in SBI Cards issue shows their poor market analytical skills and due diligence. There should measures in place beto save the investors from any sudden bubble burst on the global count.

Sitaram Popuri


Volatile phase

This refers editorial “Mercurial markets”(March 17). Primary markets cannot be antithesis to the overall market trajectory; therefore, SBI Cards’ muted response is true to form. Of late, many investors in primary and secondary markets have burnt their fingers and are even not sure what’s in store during the coming days. The government is likely to come out with a rescue package and financial stimulus, but this will not be sufficient to lift the profound pessimism in the market as a fallout of Covid-19. Interestingly, the markets were soaring prior to epidemics, despite the economy being in bad shape. The government’s strategic sale of BPCL and disinvestment of LIC is now mired in uncertainty. The only silver lining is the fall in crude oil prices.

Deepak Singhal


South Asian politics

Apropos “Peace deal with US won’t deter Taliban” (March 17). The tribal hinterland of Afghanistan escaped the British rule and the Soviet invasion. The Americans, too, had nearly called it a day in 2014; but the geographic positioning of this nation kept them invested. The Afghan-Taliban insurgence has since moved into the northwestern region of bordering Pakistan. The Taliban holds sway on Pakistani politics and would wish to involve New Delhi in their strategy.

Other than hope, we seem to have little to contribute. Afghanistan is vital to the equilibrium of this volatile region. That foreign policy is only about the far future, has never been more relevant than nowthan here.

R Narayanan

Navi Mumbai

Tax savings

BPCL and ONGC declared their interim dividends with a rider that the same will be paid after April 1, 2020. So the little dividend amount small investors get will be taxed. Had it been paid before March 31, there would have been some tax saving.

N Kalyanasundaram


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Published on March 17, 2020
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