Letters to the Editor — March 11, 2020

In the Yes Bank case, in our haste to find faults and then fix responsibility for them, are we not overlooking a vital aspect which could have played a significant role in the disastrous showing by the bank — the floundering economy of the country? I would say that it all started with the folly of demonetisation which virtually brought the cash-driven rural and MSME sectors of the economy to its knees. It also struck a huge blow to the real estate sector. The parlous state of the real estate sector did have a role to play as far as some prominent NBFCs who lent massively to the sector are concerned. The slowdown in realty and the stalling of infrastructure projects has had a chain reaction in the form of sharply reduced demand for many products.

Unless the government realises the gravity of the situation and initiate steps to stimulate the economy, there could be more bad news.

Bengaluru

How many readjustments is the government of the day going to make to save every bank that is ready to collapse? What about the State Bank of India’s own non-performing assets? The Yes Bank case shows that lending heavily to corporates without due diligence of their loan history is one of the major issues affecting the banking sector. Had similar loan amounts been extended to small- and medium-scale industries it would have most certainly boosted growth and employment and might have even revived the sinking growth of MSMEs. The government of the day needs to invite the best banking experts to run banks and also ensure a strong regulation regime to control the issue of growing NPAs.

Rajahmundry, Andhra Pradesh

The case raises questions on the efficacy of present regulatory systems and procedures. It is to be noted that the bigwigs who commit these huge financial frauds are very aware of our legal system, where a case can be dragged on for decades using the maze of adjournments and appeals at various levels. It is to be hoped that at least now the banking regulator will thoroughly reform the regulatory systems and procedures and that independent bank board members will be appointed based on their professional competence and integrity.

Hyderabad

The puerile, insidious act of the Uttar Pradesh government, of using hoardings to ‘name and shame” persons arrested during protests last December against the Citizenship (Amendment) Act, is reprehensible and exceeding its remit (Page 1, “HC orders removal of Lucknow hoardings”, March 10). By demonising the alleged protesters and portraying them as criminals is proving of mens rea by the government per se. The judiciary should have also adjudicated to recover the expenses against the provision of hoardings from the Lucknow District Magistrate.

Chennai

The report that well qualified candidates are among newly appointed conservancy staff in Coimbatore, Tamil Nadu is not the first of its kind in India (Page 1, “When PGs pick up the broom to become govt. servants”, March 10). Though social equality has ensured a more level playing field, the question whether there is proper utilisation of skills of an educated person remains unanswered. The government needs to fix strict eligibility criteria and thereby help to channelise the potential of the skilled and the educated for the betterment of the nation. The government should also incentivise job creators and curb the perception that only government jobs are best.

Thoothukkudi, Tamil Nadu

The report is is a signal to the State governments and the Centre. The fact that highly educated persons are now conservancy staff in the Coimbatore Municipal Corporation highlights rising unemployment every year in the country. There have been reports of how in Uttar Pradesh, there were lakhs of well qualified applicants for lower rung jobs. As there is a huge percentage of the young in India, the government has the foremost responsibility of creating more jobs.

R Krishnamachary,

Chennai

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