Apropos of the edit “Insurance cover”, the Life Insurance Corporation of India introducing the third gender option in its proposal forms is a progressive step. This is the first such step to recognise transgenders’ right to services from the government and the private sector. Once hopes that more insurance companies are prompted to give space for such identification, leading to transgender identity becoming a part of the mainstream.
The rising NPA problem
The proposed Banks Board Bureau, to monitor Indian banks, will not serve much in recovering bad loans, NPAs, etc. Consolidation of banks, mergers of banks, etc, too, will not help in NPA recovery either. Recapitalisation of banks will cover capital adequacy needs as per international norms, but will definitely not help in recovering NPAs. The banks’ balance-sheets can only be cleaned by selling bad loans for a pittance to an asset-recovery company, though it can’t not ensure that there will be no bad loans in future because banking is a risk-taking industry. There is no certainty of returns, recovery of loans/advances. Banks are treated like social service department/charity institution and milked by all. Many caste groups consider it is their right to get a loan and pressurise banks to give loans. These loans are never returned. But public sector banks must not be allowed to sink. More and more public money will be used to keep them floating. To pour/sink money in banks’ capital, more and more taxes will be levied or the tax rate will be raised.
Sudhir Keshav Bhave,
A welcome move
The Banks Board Bureau (BBB) with former CAG Vinod Rai as its chairman and renowned bankers like HN Sinor and Anil K Khandelwal and CRISIL’s former chief Rupa Kudwa as its members is a good idea. At a time when most of the public sector banks are saddled with non- performing assets to the tune of a whopping R4 lakh crore and face a massive capital crunch, the BBB offers some hope. The primary objective would be to give recommendations on appointment of directors of the banks and suggest ways to raise funds and direct mergers and acquisitions of banks. The Bureau would also search and select heads of PSBs, non-executive Chairmen and non-executive directors on the boards of PSBs. BBB should also seriously look into the consolidation of banks which would only enable public sector banks to become stronger entities, giving them the needed edge and strength to compete with their peer banks in the international arena. BBB could perform all this effectively only and only when there is no interference from the government and the politicians who are responsible for the state of the PSBs today.
Tharcius S Fernando,
Please send your letters to:
The Editor,The Financial Express, B1/B, Sector – 10, Noida – 201301. Distt: Gautam Budh Nagar (U.P.).or e-mail at: firstname.lastname@example.org or fax at Delhi: 0120-4367933