Challenges for banks

This refers to ‘Investors get the short shrift in virus relief’ (June 13). The entire economy has endured a massive contraction due to the pandemic. The government and the various regulators have unleashed different relief and financial packages.

The banking system has been enriched with abundant liquidity and credit guarantee cover to enable lenders to accomplish the job of swift expansion in the creation and disbursal of credit, besides creating an environment to enable the lenders to cut the lending rates.

The reality is that the banking system in the near future has to face the challenge of a huge rise of non-performing assets and severe setback on its profitability. The government and the banking regulator must foresee the ground reality and implement modifications in the asset recognition and accounting policies of the banking sector, besides design restructuring schemes for the outstanding credit facilities giving due weightage to the damages caused to the economy.

VSK Pillai

Kottayam

Covid management

This refers to ‘Covid lessons from Mumbai’ (June 15). As the virus cases rise so is the blame game and the political one-upmanship. The unseemly brawl between Delhi CM and LG over allowing outsiders could have been avoided. It is time the States and the Centre had better coordination and sank their differences.

The Delhi High Court’s remarks that Delhi would be a corona capital and the ICMR’s prognosis that the virus spread will peak in November are indeed worrisome. However, do these pronouncements in any way help in the battle against the pandemic? It only spawns panic and a fait accompli -like situation. There are also reports of under-reporting of Covid-induced casualties and fudging of data.

Deepak Singhal

Chennai

Indo-Nepal ties

The relationship between India and Nepal received a major jolt and runs the risk of nosediving to a new low, with the Nepal government giving approval to the country’s new map that includes Kalapani, Lipulekh and Limpiyadhura which figure in Indian maps.

Whether it is a deliberate muscle flexing by Nepal, bolstered by the support from China, or an attempt by its Prime Minister Sharma Oli to build a lasting legacy by overturning what he calls unequal agreements with India, what should not be missed out is the absence sustained dialogue to resolve the differences. It is time the political leadership of both the countries took concrete steps to resume dialogue to iron out their differences amicably.

M Jeyaram

Sholavandan, TN

Push for electronics

This refers to the editorial ‘Silicon dreams’ (June 15). The new electronic policies are well thought out. The ₹50,000-crore package will help attract global mobile phone-makers who want to cut their dependence on China.

While the productivity-linked incentives will give impetus to new-comers, interest subvention for manufacturers, credit guarantees, cost-effective loans, and fresh manufacturing clusters should make India a global electronics hub within the next five years.

NR Nagarajan

Sivakasi

Lockdown was needed

The opinion of a group of experts that the lockdown was of no use is incorrect. It ensured that the number of cases remained low and occurred over a longer period of time. This allowed the government to mobilise medical resources and people to habituate themselves with the importance of avoiding various social activities. The way forward should be cautious, with easing restrictions on important economic activities.

The government should liberalise testing and provide more kits for common citizens to get tested with ease. No doubt, the lives of many have been disrupted and lost, but could it have been better without the lockdown? I don’t think so. Today, our Covid-19 death rate is not anywhere close to countries with similar number of positive cases.

Ravi Teja Kathuripalli

Hyderabad

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