Letters to the Editor

Igniting Passions for Developmental Strides

This refers to your cover story on pharma industry (Pharma's Next Gen, May 21). The strategic plans and actions of the youngsters in successfully taking the baton of responsibilities involving diagnosis of issues, entrenching prognosis of market conditions, and practical wisdom and expertise will help other companies to revisit their portfolio of products and catalyse positive interventions accordingly. The new-age industrialists offer a healing touch to their operations, lead the lamps of insightful ideas of their forefathers-cum-founders and ignite innovative passions for developmental strides. They get to the bottom of the issues and show a clean pair of heels in the midst of the business risks and market difficulties. The isolation of Indian pharmas by the US Food and Drug Administration's conditional obligations, including their unilaterally reserved right to inspect our manufacturing facilities for approval of their formulations, militates against the World Trade Organization's trade norms under the aegis of globalisation. The Centre must take up this issue in WTO forum to redress this conundrum. The full treatment of the collective issues of Indian pharma in the course of the study of these representative companies by Business Today will definitely impart Midas Touch to their right endeavours.

B. Rajasekaran, Bangalore

Let Banks Not Treat the Symptoms But Maladies

This refers to your special story on NPAs (Cleaning the Bad Loans Mess, May 7). The shocking figure of `14 lakh crore is indeed an eye-opener, and if this state of affairs and rising trend of NPAs continues, our banking sector may be literally on the edge of a major financial disaster. It may be recalled that with a view to moving towards international best practices and for ensuring greater transparency, it had been decided to adopt the "90-day overdue" norm against "180 days" for identification of NPAs, from March 31, 2004. And after nearly 13 years, now it is necessary to reduce the norms - 45 days or 60 days - for an effective control. NPAs are problematic for financial institutions since they depend on interest payments for income. In January 2014, the RBI had offered some leeway to banks for early resolution of bad loans. It had also diluted rules for provisioning it had proposed for non-performing accounts. But now it is time to review the situation again. The heart-burning over humongous NPAs can be avoided by following some steps like adequate study of projects before taking a lending decision; ensuring meticulous compliance of all terms and conditions of sanction; carrying out regular and frequent inspections of all accounts; and cutting down annual review of all accounts to quarterly review for timely and corrective action. Like good surgeons, let the banks not treat the symptoms but to treat the malady itself, so that further deterioration in the quality of assets is stopped.

J.S. Broca, New Delhi

All Banking Facilities Must Be Charge-free

This refers to your special story on cashless economy (Digital Highways, May 21). To promote cashless transactions, all banking facilities must be charge-free, or at least new charges must not be levied. Like a tax-free holiday, the Reserve Bank of India must ban all new charges on its customers forever. Why should a person pay for withdrawing or depositing his/her own money? This is the most ridiculous charge that has been levied by the banks. If they are giving us service, we are also giving them money for safe-keeping. Such absurd charges would lead people to shun the banking structure. A penny saved is a penny earned. Wise people would rather avoid banks altogether

Mahesh Kumar, New Delhi