Letters to the editor dated July 7, 2021

With reference to article ‘Declaring victory too soon, again?’, we have not learnt our lessons from the first wave and the second wave. So we need to be very cautious at least now. Yes, makeshift Covid centres need to be dismantled but there should not be any hurry in doing so. Most experts have warned of a third wave, and its timing and intensity is being debated. So it makes sense to play a bit conservative and be on our toes till we have vaccinated at least 75 per cent of our population. During the second wave lack of hospital beds, oxygen cylinders made people suffer to no end. And we have not improved our medical infrastructure much since, so let’s keep these temporary Covid care centres for some more months.

Noida

With reference to Editorial ‘Stable, for now’ (July 7), even though banks could deliver a better performance in margins, containing the humongous bad assets, raising the capital levels and total business mix, yet they have to be more focused on drastically improving their efficiency in monitoring credit portfolio, recovering the bad loans from the delinquents and sustaining the net worth and credibility.

The persisting Covid-19 wreckage and the key role of banks in the execution of the credit-linked stimulus package, are looming threats to the banking sector.

The rising job losses are negatively impacting the cash flow of retail borrowers and it will pave the way for fresh slippages in the quality of the assets of the banks.

The easing of cash flows depends on the speed of economic revival.

For that the unlocking of regional lockdown is critical and it is imperative to accelerate the vaccination process.

Keeping in view of the practical inconvenience being faced by banks for on-site supervision on the activities of the borrowers, the lenders and the regulator need to be alert and tighten their oversight.

Changanacherry

This refers to the Editorial ‘Stable, for now’ (July 7). As rightly mentioned it projects an optimistic picture of banks in terms of a healthy CRAR, reduction in NPAs, ROA etc.

In reality it gives an impression that the report hides much more than it reveals. Since the Supreme Court imposed restrictions on declaration of NPA, the report could not have captured the full effect of bad loans.

The impact of restructuring would have led to the projection of an optimistic view.

Sustained policy support on the part of RBI and regulatory forbearance would have contributed largely to striking a positive note.

Formation of bad bank is another major development which will ease the NPA problem in future, but this is not a positive development as the stress gets shifted from one area to another and this only a temporary respite to banks with inherent weaknesses largely intact.

Chennai

This refers to the article ‘Gear up the ride to export boom’ (July 7). Global growth is accelerating, thanks to falling Covid cases and the ramping up fo the vacination effort. India's overall exports have increased steadily but the dismal performance of the labour-intensive core sectors due to job losses is a source of worry.

Even though a depreciating rupee makes exports competitive, reducing the labour cost and reviving its supply is essential to boost core sector exports.

India must attract companies relocating from China with increased ease of doing business, simplified labour laws and land acqusition laws with refined tax reforms.

Joining global supply chains with increased export competitiveness is the need of the hour..

Sivakasi

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