The stress on profitability has returned, the wheel has not turned a full circle as perceived and is instead being governed by a changed global economic scenario. Government-sponsored lending exists in one form or the other. Revenue-oriented banking and emphasis on profits to strengthen the capital base is nevertheless gradually returning to business strategies. Stock markets today play a more dominant role with share and bond issues funding capital. Although interest payments are involved in these instruments it ensures a stronger capital base for the immediate present for industrial survival. The levels of capital should be the measure to set lending targets without taking recapitalisation by the government for granted. Instead inflow of government capital should be emphasised on weaker banks with the responsibility for effective management of resources resting on the stronger ones.
C Gopinath Nair Kochi
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in