Financial Daily from THE HINDU group of publications
Friday, Apr 30, 2004
Financial Daily from THE HINDU group of publications Friday, Apr 30, 2004 |
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Opinion
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Letters Bank dividends
This is with reference to "Raising the bar for banks" (Business Line, April 27): The article has rightly pointed out that by putting out a detailed dividend policy for banks, the RBI has raised the efficiency bar for them. The increase in the capital adequacy ratio from 9 per cent to 11 per cent is a critical move to strengthen the base capital according to the new norms. And the stipulation that net non-performing-assets (NPAs) must be less than 3 per cent should give an impetus to banks to reduce their NPAs, and not merely by transferring the loss assets to asset reconstruction companies. And if some large banks such as the SBI, ICICI and Punjab National Bank take advantage of the industrial growth and the Securitisation Act, the total NPA may come down dramatically. Moreover, in view of the mergers and acquisitions that may take place, the RBI move is well in time. A.Jacob Sahayam Thiruvananthapuram
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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