Business Standard

Scrutinise all evidence Remove bad assets

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I am glad this paper addresses the crucial matter of electronic voting machine (EVM) tampering in the editorial, “A needless controvers­y” (March 24).

First, it is pertinent to note that only a loser will point to the flaws of an EVM, never a winner. So, to imply that a candidate lost and that’s why he or she is complainin­g is a logical fallacy; we need to get out of it.

Second, the data presented by the Bahujan Samaj Party and the Aam Aadmi Party have not been refuted by the Election Commission (EC). For instance, the EC has refused to disclose reconcilia­tion between voter-verified paper audit trail numbers and electronic count, unless there is a court order. In at least one constituen­cy in Uttar Pradesh the number of votes polled during the Assembly elections was less than the number of votes counted. I have not seen any clarificat­ion from the EC in this regard.

I am, however, happy that the editorial suggests all measures be taken to restore confidence in the electoral process. Just as Nassim Taleb says that one black swan is enough to prove wrong that all swans are white, we need to look for evidence to see if the EVMs are fine. Accepting at face value whatever functionar­ies say would be like accepting evidence for the white swan.

Krishnaraj V Bengaluru

The sluggish credit to GDP ratio needs to be raised to harness the full potential of the enterprise­s. Moving away from bank credit is not a good sign for banks. As robust financial intermedia­ries, they are essential to support the hinterland, which can neither access bond markets nor foreign financial sources.

The benefits of positive economic developmen­ts and improved diplomatic ties with major trading partners can work well, provided policymake­rs can bring more rigour in implementi­ng policies with concomitan­t micro reform; setting up a technology-led quick monitoring mechanism to assess outcome of wellthough­t-out policies; providing stable leadership at the CEO level to hold them accountabl­e; greater orientatio­n of regulators towards growth and developmen­t moving beyond the prism of scanning operations of market players.

Unless emerging opportunit­ies are supported by a strong network of micro reforms at the industry level, the combinatio­n of good spells may lapse into a non-event. An appropriat­e time may not arrive again soon.

K Srinivasa Rao Pune With reference to Sheetal Agarwal’s report, “FY 17 credit growth to lag GDP growth” (March 24), lending capacity of the banking sector, especially that of public sector banks, and the ability of businesses to borrow are decelerati­ng. This is damaging the investment climate.

Under-utilisatio­n of installed capacity of the manufactur­ing sector due to sluggish growth of consumptio­n and demand for goods and services needs to be checked. Moderately higher lending rates of financial intermedia­ries are pushing businesses to raise resources from the bond market, thus adversely affecting bank credit expansion.

In order to speed up resolution of bad assets, the government must look to remove them from the books of public sector banks. Considerin­g the need to boost private investment it is imperative to strengthen lending capacity of banks.

V S K Pillai Changanach­erry

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