This has reference to ‘Will investors shun bank bonds now?’ (December 17). The bank bonds carry the same risk like any other NCDs and investors consider them more credit worthy as they are issued by banks. It is only a deemed comfort that banks will not default on its commitments especially on Tier I and II bonds. The investors should make a through assessment of these instruments and should not be carried away by a marginal interest benefit attached to such bonds. They do not have the DICGC cover and write-off of principal and interest on bank bonds is legally possible.
This refers to ‘The dichotomy in FPI and MF behaviour’ (December 17). The stark contrast in the perception of FPI and mutual fund investors in terms of entering and exiting the market is an interesting observation. One common factor which clearly evolves is FPIs’ investment decision is based on interest rate movements at the global level whereas domestic mutual fund investors take advantage of lows to enter the market to cash in on the opportunity preferring to wait long term in the process. The reason for the differing approaches could be that when the market surges due to FPI inflows, domestic mutual fund investors could be seeing it as an opportunity to redeem their units resulting in market decline.
Apropos the editorial ‘Too big for comfort’ (December 17), technology no doubt is essential in modern-day life. But when it exceeds boundaries, it poses a threat to safety and security. Facebook serves as an instant knowledge and experience-sharing platform. Excess usage of this media with minute by minute updating on one’s personal life can be addictive and isn’t time well-spent.
IT Minister Ravi Shnkar Prasad recently accused FB of inaction against anarchic and radical elements that have used the platform to stoke violence. He protested that the spate of recent anonymous, source-based reports was nothing but an internal power struggle within FB for an ideological hegemony.
The ‘RBI relaxing regulatory sandbox norms for applicants’ (December 17) is welcome. Going forward, partnerships, including LLPs, can participate in regulatory sandbox activity, along with the reduction in the net worth requirement from ₹25 lakh to ₹10 lakh. Following ‘retail payment products’ tested under the first cohort announced in November 2019, the apex bank has now announced that products serving ‘cross-border payments’ and ‘MSME lending’ will be tested under the proposed second and third cohorts.
Though banks have come a long way since the halcyon days of manual operations, there is still much scope for innovations. Public sector banks would greatly benefit from innovations that reduce their time spent on activities such as KYC, monitoring of NPAs, compliance with pre- and post-sanction norms, followed by data security and financial inclusion.
Apropos ‘Global HDI: India scores on life expectancy, standard of living but slips a rank’ (December 17). A vast country like India with 65 per cent of its population being below 35 years of age — that is, with a rich demographic dividend — is still ranked low in human development index. To improve HDI, the government should invest in medical facilities, basic infrastructure, providing clean drinking water to the remotest corners of the country, educational facilities, medical insurance, etc. This will automatically improve people’s standard of living.
The headline, ‘Subscription to warrants: SEBI gives 1-month extension to IDBI Bank promoters’ (December 17), should have read ‘Subscription to warrants: SEBI gives 1-month extension to IndusInd Bank promoters’. The error is regretted.
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