The Hindu Business Line


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Heavy down­pour

This refers to the ed­i­to­rial ‘Yet an­other del­uge’ (Au­gust 12). Rains have bat­tered Ker­ala, Kar­nataka and Ma­ha­rash­tra, leav­ing many dead, and break­ing down com­mu­ni­ca­tion links. But th­ese are not the only States which have seen tor­ren­tial rains cre­at­ing havoc; some parts of Gu­jarat, Bi­har and MP also wit­nessed it. The NDRF and In­dian Army teams are work­ing over­time to pro­vide re­lief and res­cue the cit­i­zens but still there is a lot which needs to be done. Ex­ces­sive con­struc­tion and cli­mate change have re­sulted in this cri­sis, which has sadly be­come rou­tine nowa­days. What is be­yond com­pre­hen­sion is that we are not learn­ing our lessons. Bal Govind


Bank­ing ser­vices

This refers to ‘FinMin plans 16-point ‘KRA’ to push PSBs’ (Au­gust 12). The state-owned banks’ per­for­mance in the 16-point KRA de­pends upon the de­mand for the prod­ucts and ser­vices of the bank, es­pe­cially for credit. The gov­ern­ment has to has­ten the ex­e­cu­tion of eco­nomic re­forms to boost the de­mand for banks’ prod­ucts and ser­vices. Ex­ces­sive pump­ing of credit will pave the way for di­ver­sion of funds for spec­u­la­tive pur­poses and re­sult in the cre­ation of bad assets and neg­a­tive per­for­mance.

The health and cred­i­bil­ity of the bank­ing sys­tem, es­pe­cially that of pub­lic sec­tor banks, de­pends on ef­fi­ciency in re­cov­ery of bad loans and the tech­ni­cally writ­ten-off loans.

Res­o­lu­tion of big-ticket loans with deep dis­counts to bid­ders is ul­ti­mately a loss to the ex­che­quer, with the aris­ing gap funded by the gov­ern­ment as cap­i­tal.

Pro­vid­ing bank­ing fa­cil­i­ties to the ail­ing seg­ments is badly af­fect­ing the lenders, hence it be­comes im­per­a­tive to ex­e­cute mea­sures to cor­rect the func­tion­ing of the for­mer to en­sure that it is not ad­versely af­fect­ing the bank­ing sec­tor. Till the ail­ing sec­tor be­comes healthy, the bank’s ser­vices, par­tic­u­larly the credit fa­cil­i­ties, must be a per­form­ing as­set in the loan books of the bank.

Gen­er­a­tion of bad assets is oc­cur­ring on ac­count of the prob­lems of the bank, the bor­row­ers, in­ter­nal and or ex­ter­nal ad­verse macroe­co­nomic fac­tors, and the poli­cies of the gov­ern­ment.

VSK Pil­lai


Auditor cri­sis

Apro­pos the news report ‘CA so­ci­ety: SEBI pro­posal on auditor res­ig­na­tion in con­flict with In­sti­tute norms’ (Au­gust 12), re­sign­ing shouldn’t be a fea­si­ble solution.

Auditor res­ig­na­tion in the mid­dle of the year spreads un­cer­tainty, with se­ri­ous ram­i­fi­ca­tions on the mar­ket cap­i­tal­i­sa­tion and rep­u­ta­tion of the en­tity. What SEBI has rightly tried to do is re­solve this on­go­ing cri­sis.

Let the ICAI sit with SEBI and re­view the is­sues that au­di­tors fear, es­pe­cially of dis­ci­plinary ac­tion. Hans­eswar Ghosh


Hu­mane duty

With ref­er­ence to the report ‘Im­por­tance of small-scale phi­lan­thropy’ (Au­gust 12), phi­lan­thropy is not only es­sen­tial but also a part of our cul­tural her­itage. Ir­re­spec­tive of its scale, ev­ery in­di­vid­ual must be en­cour­aged to give away some of their re­sources to oth­ers.

As hu­man be­ings, we en­joy so­cial­i­sa­tion and live in mu­tual de­pen­dency mode . Hence, ev­ery ca­pa­ble in­di­vid­ual/fam­ily should con­trib­ute to bridge the gap be­tween the haves and have-nots to bring about so­cial jus­tice for a har­mo­nious liv­ing.

Anju Bha­tia


Po­lit­i­cal power

This refers to ‘Choice of So­nia — a ‘ bal­anc­ing act by CWC’ (Au­gust 12) .Even af­ter hav­ing ruled the coun­try for a long pe­riod of time, it is un­for­tu­nate that the Congress is un­able come out of the clutches of the Nehru fam­ily. With the ob­vi­ous nonex­is­tence of democ­racy within the party, there is no ques­tion of en­sur­ing a demo­cratic process of ad­min­is­tra­tion by the Congress, in case they gain power again. It is sur­pris­ing that the man­tle of the party, though in­terim, has been given to So­nia Gandhi.

That not a sin­gle per­son from the party has emerged as a leader af­ter so many years is quite shame­ful. Vazuthur Ragha­van


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