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Compromise route is sensible
This refers to the news items ‘RBI panel on defaulters to submit
report soon’ (Oct 13) and ‘NBFCs seek access to DRT route to
recover NPAs’(Oct 12). It is informed that under the One Time
Settlement scheme, over 6.5 lakh accounts involving nearly Rs
3,500 crore have been settled through the compromise route.
Further it is stated that Rs 2,585 crore was being recovered
through debt recovery tribunals. Thus, major recoveries have
been through the OTS and the impact of the DRTs has only been
to create pressure. The real performance of the DRTs cannot
be otherwise.
After all, the judicial process, howsoever expeditious, has
its limitations. More so, when the defendant/borrowers are increasingly
aware about the scope of their rights to defence with the application
of the law of torts in the areas of counterclaim and setoffs.
Sensing the same, the banking bureaucracy has rightly concluded
that banks would continue to explore the compromise route for
settlement of dues under their normal policy. The best recovery
is out of the profits generated from running businesses.
Market forces ie continuously falling credit deposit ratios
will force banks to help their wealth producing borrowers in
all possible ways. That would be better than either OTS or DRT.
The added benefit would be gainful utilisation of existing resources,
prevention of unemployment and wealth generation.
— Ram Kishan, on e-mail
SingTel’s ties
With reference to the article ‘SingTel says customer choice
will have priority over Bharti’ (Oct 10), we are very disappointed
with the emotive headline and the tone of the article, which
do not accurately reflect the state of SingTel’s relations with
the Bharti Group.
SingTel would like to state on record that our ties with Bharti
are strong. We are working with Bharti to jointly construct
the Singapore-India i21 submarine network, which is targeted
for service by the first quarter next year.
SingTel is also fully supportive of Bharti’s plans to grow its
cellular and fixed line businesses. Our investment of $650 mn
to date reflects out strong commitment to Bharti.
With regard to SingTel’s plans for internet data centres in
India, SingTel has been in discussions with Bharti for possible
collaboration.
If SingTel and Bharti do not collaborate in this area, it does
not mean that the interests of the two parties are not aligned.
Unfortunately, your writer seems to have drawn this conclusion.
— Francis Huan, Corporate Communications
SingTel
Our correspondent replies:
1. SingTel has several streams of business development in India,
including data centres and an existing relationship with VSNL.
2. Some of these businesses don’t fall into Bharti’s gameplan.
Therefore, SingTel has decided to follow the customer, rather
than stay away from those businesses.
3. This point will guide their expansion in India, particularly
in the post April 1 scenario.
4. Their relationship with Bharti is something we have not questioned.
Instead, we have quoted them on other businesses, a fact they
haven’t questioned in this letter.
Time to go
The bold decision of the trustees of Unit Trust of India to
reduce the retirement age for its employees from 60 years to
58 years deserves appreciation. It is worth emulating by other
government and public sector undertakings with a view to reduce
the dead wood and create employment for the meritorious, talented
and dynamic youth of the country.
Instead of introducing voluntary retirement schemes at huge
public expense, it is better to reduce the workforce via the
reduction of retirement age from the present 60 years to the
erstwhile 55 years, at the earliest.
— N P Kumar, on e-mail |
