Ignoring guidelines

This refers to ‘Why consortium lending by banks hasn’t delivered’ by Shobha Roy (March 6). Models like consortium lending and multiple banking are devised for large credit facilities due to restrictions placed by RBI on individual banks’ per customer exposure limit. Under both, information flow on borrowers is expected to be timely and smooth.

Unfortunately, banks fail to observe the guidelines in letter and spirit. A ‘lead bank’ is expected to carry out periodic inspections at the borrower site, and share the progress report along with stock and other statements with member banks. This is rarely adhered to. Once a lead bank declares a loan to be an NPA, it is mandatory on the part of other banks to follow suit. This norm too is not scrupulously followed.

A detailed audit by the RBI of banks engaged in consortium lending and/or multiple banking would prove if banks have NPAs.

Chennai

This refers to ‘RBI to open funds tap for banks this month’ (March 6). While the initiative is the result of a review of various factors necessitating the step, the RBI should also keep a watch on the disturbing trend of growing NPAs. While the growth of bank lending is both necessary and desirable, it places a huge responsibility on banks and the RBI to frame workable steps to ensure that NPAs don’t grow. This would require the revamping of the banking sector.

Coimbatore

This is with reference to ‘For better books’ by Mohan R Lavi (March 6). Both the accounting and auditing professions, presently handled exclusively by the ICAI, are at the crossroads of credibility. The Cabinet approval to pitch for an independent overseeing body, National Financial Reporting Authority (NFRA), has come at the right time.

It is high time ICAI struck the right balance between self-policing and regulating; it should take proactive steps to enforce higher standards of discipline to restore confidence in CAs as well as the governing institute. Good governance and professional ethics should prevail. WIth automation and computerisation, ICAI should not confine its activities to just accounts and audit, but move to finance and forensics too.

Bengaluru

It must be said to Rajinikanth’s credit that he is incapable of dissembling. That he is unwilling to refute his alleged proximity to the BJP and presents himself as an alternative to the Dravidian parties lends credence to the view that he might well be a prop of the party.

By not repudiating Hindutva ideology as inimical to India’s cultural pluralism and not extolling Periyar as a gem of a social revolutionary, he has made clear which side he is on in the ongoing battle over whether Tamil Nadu is the ‘land of Alwars and Nayanmaars’ or the ‘land of Periyar’.

Rajinikanth pays obeisance to the legendary MGR, swears to follow in his footsteps and promises MGR rule, but it will be hard to fill his shoes. MGR made it in politics as he was an actor doing pro-poor roles and a product of the Dravidian movement rolled into one.

Given his disinclination to embrace Dravidian ideals and upholding them, Rajinikanth will find it that much more difficult to emulate him. Without affirming allegiance to Dravidian identity at the core of Tamil Nadu politics, Rajinikanth cannot gain acceptability among the Tamil diaspora.

Maruthancode, Tamil Nadu

With reference to the editorial, ‘Advantage Modi’ (March 6), dislodging a government which ruled for 25 years is no mean achievement. Now the BJP rules 22 States along with its allies and can truly be called a national party. While the Congress needs to do a lot of introspection, Mamata Banerjee, who was desperate to forge an anti-BJP alliance, is left hanging. The BJP needs to fulfil promises to the North-East and bring the people of these States into the Indian mainstream.

Noida, Uttar Pradesh

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