Healthy growth of banks

This refers to the editorial ‘Good start’ (May 5). While resource mobilisation and its deployment are crucial to the healthy growth of banks, overseeing the execution of the deployment of funds, recovery and resolution of stressed and bad assets, risk management, auditing and inspection of the books of account and human capital management are important as well.

The recent measures executed by the RBI aren’t enough to turn the banking sector into one of the robust pillars of the financial system.

As the role of banks, particularly public sector banks, is enlarging especially following the devastations caused by the second wave of the Covid pandemic, the banking regulator has to frame more guidelines to sustain the banking institutions and capacitate them to support the various segments of the economy.

An uncompromising governance system is imperative to strengthen and safeguard the banks from financial and credibility losses.

VSK Pillai

Changanacherry, Kerala

For good governance

Fixed tenure for appointment of board members of private sector banks has merits and demerits, both pointing to the need for choosing a tenure which optimises the desired outcome.

Long tenure promotes status quo in strategic matters, creates vested interests and de-motivates deserving aspirants, but provides benefit of accumulated expertise. Shot tenures like three years, as in the case of PSBs, encourage ad-hoc decision-making but motivate potential successors down the line.

In choosing between three and 15 years as proposed by the RBI, the age of the incumbent member should be a mediator with, say, 70 years as the cap.

The selection of the members of the three key committees should be done by a group in the constitution of which the promoter has no say. As for the PSBs, there is no reason why the composition and process of selection of board members should not be as effective as that for private banks.

YG Chouksey

Pune

Fuel prices

Media reports indicate a jump in petrol price by 35 paise a litre and diesel by 39 paise after fuel rate hikes were paused for 66 days since February 27, a day after the Election Commission had announced elections in four States and one Union Territory.

While public sector oil marketing companies (OMCs) may conveniently attribute the hike to the prevailing global crude Brent prices, these companies may perhaps be more concerned about making up the losses they might have suffered during the intervening period.

So the temporary reprieve which the retail users of the twin auto fuels were able to enjoy as a result of holding of these elections, could now become a thing of the past.

Vinayak G

Bengaluru

Vaccination is vital

This refers to ‘The value of vaccination’ (May 5). Indeed, the need for vaccination can never be overemphasised and people must come forward and get themselves inoculated. The whole world is realising the criticality of vaccination, and India should not be an exception.

While the country has fallen short in providing the required healthcare facilities to its people in last one year or so, it should not let the people down on the vaccination front. The government must work closely with all stakeholders to ensure seamless supply and administration of the vaccine.

Bal Govind

Noida

Organic certification

‘Export of organic items topped $1 billion last fiscal’ (May 5) lucidly indicates that there is no dearth in demand for quality products. However, what is confounding is the domestic sale of farm produce in the name of ‘organic’, with no quality yardstick, is increasing rampantly.

Therefore, unless an all-powerful certification agency is established at the State level, domestic consumers will continue to farm produce that may not be truly organic and yet pay an exorbitant price.

Rajiv Magal

Halekere Village, Karnatka