This is with reference to the Editorial ‘For a clean slate’. Though it is encouraging to see a recovery rate of 13 per cent from written off loans, this is not enough .

The recovery in written off accounts is benficial as it goes directly to profit and loss account. Recovery through DRTs, IBCs, Sarfaesi Act is preferable to assets sales to ARCs.

The government must also give banks a free hand for recovering their loans. It must allow banks to publish the names of wilful defaulters.

The procedure of recovery should start early at SMA level to prevent the loan to come under NPA classification. Simply removing the hiccups in balance sheet and show the public that the bank is doing well amounts the bank dying its own death.



This refers to the Editorial ‘For a clean slate’ (December 29). Banks must straighten their monitoring measures on loans to keep the loans as performing assets rather than waiting to initiate corrective actions after it turns bad. Owing to a lack of proper monitoring, the diversion of bank funds is occurring, often leading to fraud.

Also cases referred to Debt Recovery Tribunals are time-consuming.

As large borrowers face economic headwinds, both domestic and global, to avoid the twin balancesheet effects, banks must refrain from aggressive lending practices. The early warning signals emanating from loan accounts need in-depth monitoring and surveillance. Also, the NPA data need to be more transparent.

VSK Pillai


Recycle and reuse

The article ‘Circular economy — Is India ready to come full circle in sustainability?’ (December 29) made for useful reading. Circular economy is a great concept. One is reminded of Greek philosopher Aristotle’s words: “Nature does nothing uselessly”.

Effective utilisation of material (including waste) is key to sustainable growth. As a teacher of economics, I have seen many students evincing interest in projects on ‘waste management’. They should take it forward for the benefit of the society. It is imperative that industries give a top priority to these students in jobs.

India being a mixed economy, governments need to have concrete policies on the utilisation of waste and communicate to people and industries accordingly.

S Ramakrishnasayee



Kudos to TNPL

Apropos ‘TNPL turns page with renewed growth’, it is a loud message to those who have believe that government owned industries fail to deliver. Established in 1979, it has undertaken several expansions, latest being hardwood pulp mill unit-II at an outlay of ₹1,385 crore, which are attributed to the efficient management of the bureaucracy.

In contrast, the Karnataka state owned Mysore Paper Mills (MPM) at Bhadravathi, established by the erstwhile Maharaja of Mysore in 1937 has been shut and regrettably there are no bidders for its take over, which proves that its worth is nothing more than scrap value.

Rajiv Magal

Halekere Village (Karnataka)