Letters to the editor dated December 9, 2020

With reference to the editorial ‘Dividends by diktat’ (December 9), with the entire world just recovering from the pandemic, it will be more appropriate now during such recessionary period for the Centre to advise the PSUs especially the Navaratnas and Maha Navaratnas to conserve the outflow (except capex) and re-plough the available funds including reserves and surplus into business expansion, rather than dolling out more by way of dividends. Business establishments having had a hit are gearing up for a comeback.

Chennai

With reference to the article ‘Covid-Vaccine – From the lab to the last mile’, too many cooks spoil the broth . Involving multifarious agencies for mass vaccination may not accomplish the intended objectives. States that have different ruling parties from the Centre will invariably be at loggerheads and indulge in blame game. The basic amenities such as sanitation, healthcare, potable water are in bad shape.

Involvement of multifarious agencies dilute the responsibilities. It is prudent that the task of inoculation is assigned to a dedicated agency whose responsibility ought to be end-to-end. It may take assistance from various other parties but the nodal agency and leading role holder has to be a single entity.

Moreover the government is trying to put cart before the horse as it is forthcoming only on rolling out vaccines bereft of any concrete logistics plan.

Noida

With reference to the article, ‘A wrong way to boost credit to housing’ (December 9), the incentive for home loan segment comes from the loan size, risk weight and pricing.

There is nothing wrong in the revised RBI guidelines linking Risk Weight to only LTV and rationalising the rate of interest as the riskiness of a loan is more affected by the LTV than its size. As long as the asset cover is adequate the borrower is entitled for some benefits and this is what is proposed in the circular.

The guidelines do not attempt any relaxations in lending norms and only the borrowing cost is expected to come down which also depends on the cost of each bank. The maximum amount of loan is increased to ₹7.5 crore which will help boosting high value loans. The benefits as per new guidelines may be extended for new loans availed to refinance existing loans also so that the borrower gets the benefits. Further in respect of existing loans that are serviced regularly for certain period, the LTV would have improved and hence Risk Weight may be reduced and the benefits passed on to borrowers as an incentive for prompt servicing.

Mumbai

With reference to the Viewsroom column, instead of poaching political leaders/MLAs from other political parties, the various parties should try to win over the people by good governance whether at municipal level, state level or central level.

When people vote in elections they expect good governance by way of improved basic facilities of life such as clean drinking water, good transport system, educational facilities and medical benefits/good health care system. The Hyderabad results is a wake up call to all political parties.

Thane

Unions’ opposition to banks recruiting apprentices is unrealistic (December 9).

By its very definition, an apprentice is one who ‘learns a trade from an employer, at low wages, for a fixed period of time’, during which, needless to add, one cannot take up membership in any union.

However, for the recruits themselves, it would be a boon, as they would get to learn the A to Z of banking, gain confidence, and earn as they learn. Most importantly, they would make themselves ready for employment, post apprenticeship, in the growing BFSI sector.

Chennai

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