This refers ‘Clearing up the bad debt mess’ by Saurabh Tripathi (October 17). Transferring bad debts to an SPV as is similar to other suggestions on transferring bad debts to ARCs or ‘bad bank’. This is simply a cosmetic accounting entry without actual sorting out the issue and amounts to window dressing. The real solution lies in recovery of the amount and turning around the asset as a performing one. Mere accounting entry will not enable banks to lend further. Faster judicial remedy will enable banks to go tough on borrowers and as long as our judicial system is defendant friendly, there cannot be any solution on the ground level.

S Kalyanasundaram

Email

This huge pile up of NPAs in our banking system is combination of both internal and external factors; these defaulter companies are as much responsible for this situation as government-related matters such as policy paralysis, delay in land acquisition, etc.

And, needless to mention economic slowdown globally, impacting the demand and supply game. But now we do not have any option other than to resolve it without much delay. If the suggestion of SPV is akin to a Bad Bank, there remain doubts and apprehension over it.

Bal Govind

Noida

The fact that public sector banks account for major share of bad loans vis-à-vis private sector and foreign banks proves that the approach of public sector banks is to be solely blamed for the present state of affairs.

This is because they have government backing in terms of capital infusion and other forms of support, which have made them less responsible when it comes to monitoring of loans. There could be genuine business reasons for loan defaults and a way could be found to help them. But banks need to address problems created by ‘wilful defaulters’.

Creation of an SPV is not going to hit at the root of the problem. Such schemes have been tested in the past with no telling effect.

Creation of such schemes will only help banks in projecting a healthy balance sheet and a robust capital structure, which are deceptive in nature. The RBI had floated similar schemes earlier.

Srinivasan Velamur

Chennai

For common good

Too many well-meaning people see the common civil code as majoritarianism under the garb of social reform. They should understand why even the courts have often ruled that the government should move towards a uniform code.

There are reasonable, well-founded arguments to do away with the age-old customs, which are incongruous with the aspirations and rights of educated women and the changing needs of society.

Vani A

Secunderabad

It is only natural that the issue of uniform civil code is hotly debated by its proponents and opponents, given its far-reaching social ramifications. It has become fashionable and politically correct, so to speak, to speak in support of a uniform civil code without grasping its full import.

A degree of critical detachment is required to understand why the votaries of hard-line Hindutva push a common civil law as one of its pet agendas.

The heterogeneous population of India is least amenable to being forced to follow a new set of uniform personal laws.

G David Milton

Maruthancode, Tamil Nadu

Old ties

India-Russia ties which have taken a backseat in recent times should gain traction with the inking of a slew of military deals on Saturday. The decision to buy the much vaunted S-400 Triumf air defence systems comes close on the heels of acquiring the Rafale fighter jets from France and will add the much-needed teeth to the Indian Army strike corps.

While reiterating that old friend Russia will remain India’s major defence and strategic partner PM Modi also did well to put the lid on terror and subtly caution Putin against scaling up Russia’s defence ties with Pakistan.

NJ Ravi Chander

Bengaluru

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