Loan restructuring
‘PSBs following a templated approach to restructuring loans’ (May, 31) is a good move that would eliminate subjectivity and distortion from the process. Restructuring is normally extended only to deserving borrowers.
However, in the present pandemic situation, the option is being provided to all borrowers, with an aggregate credit limit up to ₹25 crore, which were ‘standard assets’ as on March 31. With the option neither affecting the credit score of the borrowers nor entailing banks to make additional provisioning on the restructured assets, the exercise is made transparent.
V Jayaraman
Chennai
Oxygen plants
The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS ) to hospitals/nursing homes/clinics /medical colleges as per which 100 per cent guarantee cover to loans up to ₹2 crore will be available for setting up on-site oxygen generation plants, with interest rate for the loans capped at 7.5 per cent. This will be very handy for small hospitals and nursing homes and similar funding arrangement should be made available for government and municipal hospitals also.
In line with the the funding availability facilitated by the government, captive oxygen plants should be made mandatory for all hospitals, nursing homes and medical colleges. Further, in anticipation of the third wave which is apprehended to affect children preparation including oxygen supply should be made by hospitals to handle paediatric cases keeping in view there will be one attendant for every child
M Raghuraman
Mumbai
Inflation woes
This refers to ‘Economy showing symptoms of stagflation’ (May 31). While the government is incurring a hefty sum towards subsidies and concessions, it is vital to eliminate all sorts of benefits going to the undeserving sections of society to curtail the revenue expenses of the government.
The expanding budget deficits and their eventual financing are one of the causes of inflation. However, the financial inclusion programmes need further strengthening to enable a lot of people who are left excluded not only to enable them to have the benefits but also to extend opportunities to them to contribute to the growth and advancement of the country.
The persistently climbing fuel prices and the multiplier effect thereupon on the cost of transportation, manufactured goods and commerce and trade is pushing up both wholesale and consumer prices.
And, the declining credit absorption by the productive sectors is causing unemployment to rise.
VSK Pillai
Changanacherry, Kerala
Vaccine origin
The world is still in the dark over how the Covid-19 virus originated. Despite China’s obfuscation of origin story, scientists have still managed to put together evidence that both weakens the theory of natural emergence in Wuhan, and strengthens the possibility that virus originated in a lab there.
The way in which the WHO investigators have been stymied shows Beijing resisting full, transparent and evidence-based international investigation.
However China, like the international community at large, has a stake in discovering the origin of the pandemic, or disclosing it if it already knows. India too must join the global effort to fix accountability.
N Sadhasiva Reddy
Bengaluru
Loans for Covid treatment
This is with reference to ‘Banks decide to extend unsecured personal loans’ (May 31).
The decision by public sector banks to extend loans to salaried persons/pensioners in meeting their expenses towards Covid-related ailments is timely and will certainly help ease their financial burden.
Banks should immediately give necessary instructions to all their branches for granting loans to the needy applicants even if they have existing loans. All the banks should charge a concessional rate of interest as decided by the SBI in its branches.
Katuru Durga Prasad Rao
Hyderabad
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