Advantage NBFCs

With reference to the Editorial ‘Banking on NBFCs’, firms like Tata Finance, Bajaj Finserv and Mahindra and Mahindra Finance can convert themselves into banks if RBI panel’s recommendations are considered favourably by RBI and their promoters are interested. But reducing promoters’ stake and connected lending would be the two biggest stumbling blocks for these promoters. Parting with a bigger chunk of stake could be a tricky issue. But if they decide to toe the line then there is no doubt that with the kind of reach these NBFCs have pan India, they could really bridge the gap needed at present to cater to growing needs of the customers as India remains unbanked significantly despite PSU banks’ deep presence into the country.

Bal Govind


With reference to the editorial “Banking on NBFCs” (November 23), the advice to convert select non-banking finance companies into banks, lacks vision and prudence and it may enhance the supervisory burden on the regulator, instead of mitigating the problem. At a time, the banking sector and NBFCs are facing multifarious issues emanating from loan defaults, failures, frauds, liquidations and diversions, how would adding some more players in the banking space help ease the situation? There is a need to streamline banking by effecting more mergers among efficient public and private banks, handle the stressed assets of the dilapidated banks through bad banks like ARCs to achieve a permanent resolution and finally downsize the number of banks for operational convenience and to improve their efficiency.

Sitaram Popuri


The recommendations of the Internal Working Group of RBI on the ownership of banks (November 20) is in line with long-term demands and is going to be a game changer. The suggestions to permit NBFCs to convert to banks, allow industrial houses/ corporates to own banks and increasing the cap of promoter stake from 15-26 per cent will pave way for more merger and acquisitions and consolidations . As long as the control measures are in place and corporate governance standards are maintained ownership should not matter.

M Raghuraman

Mumbai 400072

Scripting ‘business’ movies

With reference to the article ‘Not scripted for success yet’ (November 23), Indian movies are great entertainers and cater to Indians’ liking for movies and movie stars. Movies are also made with an eye on box office collections which will jingle only if the movies have all the ingredients required to make them successful at the box office.

Movie making is a costly affair so producers require guarantee that their moviesmake money or at least recover the costs. In this backdrop Sudha Kongara has made a sincere attempt to project life of Capt Gopinath in the movie “Soorarai Pottru” .The movie portrays the struggles of an entrepreneur who wants lesser privileged people travel by air. There is plenty of hidden talent in India especially in rural areas. If more meaningful movies are made on social entrepreneurship, and ethical business they can become a medium of change.

Veena Shenoy


Support unorganised sector

With reference to the article ‘How this dairy co-op beat Covid Blues’ (November 18) should serve as an example for the entire dairy sector, which hinges on the fortitude of farmers, as the farmer is considered the backbone of the nation’s economy. Since the majority of Indian dairy farmers fall under unorganised sector, there is a pressing need to modernise the sector not just with fiscal sops, but with technology that must be made accessible for them, without much financial burden, since this sector is wary of investment fearing a undue fiscal crisis.

Rajiv N Magal

Halekere Village (Karnataka)

BJP’s TN ambitions

In the internecine feud amid Dravidian parochialism, there is little space left for others. The BJP today, is out to leverage latent dissentions within AIADMK for a foothold in the state.

But the DMK too has marshalled resources and smoothening its internal rifts. The saffron party, like the Congress, errs in assessing regional undercurrents and has found little purchase in the South.

Over time, regional leaders too have woken up to the fact that their political identity and future could now be gradually eclipsed by the BJP, given its distaste to collective governance .

R Narayanan

Navi Mumbai


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