Start-ups’ potential
The country's promising unicorns — Zomato, Paytm and Nykaa — tapping the capital market successfully, augurs well for our larger start-up ecosystem.
Paytm’s IPO is a reflection of the growing depth of the country's domestic capital markets and willingness of investors to back these start-ups.
That new unicorns are now being created not only in well known segments such as e- commerce and fintech, but also in other verticals such as logistics, which is truly encouraging.
While the increasing ability to transact digitally, bolstered by platforms like Unified Payments Interface (UPI), had played a conspicuous role in transforming the digital payments ecosystem in India and imparted a needed impetus to both existing and new start-ups, much needs to be done to make both policy and regulatory environment more conducive for the start-up ecosystem to flourish and scale new heights.
M Jeyaram
Sholavandan (TN)
Boosting bank lending
This refers to “Banks can lend with more freedom, less fear” ( November 12). We are in an era of financial intermediation, with banks being exposed to various types of risks. This calls for bankers to assume higher responsibilities when it comes to tackling risks.
The structure which has been envisaged to free lenders from the angle of ‘staff accountability” will increasingly lead to ‘tick box’ approach at a time when digital algorithms, robotics and artificial intelligence are set to replace the conventional banking system which ideally need to be human centric.
“Staff accountability” could be construed only as one of the reasons for slow credit offtake but in a pandemic impacted economy, low demand, high interest rate etc. are primary factors for credit not picking up.
Also lack of appraisal skills, nexus among bankers, politicians and business men, red-tapism etc. are primary reasons for high ticket loans turning bad.
Bankers should learn to resist pressures applied by external sources in loan disbursals. Freeing bankers from “staff accountability” angle should not lead to NPAs once again skyrocketing.
Srinivasan Velamur
Chennai
Tea Board’s welcome response
This refers to the report ‘Govt cracks down on import of sub-standard tea’ (November 12). The prompt action on the part of Tea Board responding to the reported adulteration of quality Indian tea with sub-standard imported tea deserves appreciation.
The averment that “the percentage of imports to total tea production is normally in the range of one to two per cent, of which a sizeable quantity is meant for re-export and not meant for domestic use” is no consolation, as what is at stake is the consumer trust in ‘Brand India’.
The incident points to the need for closer monitoring of quality control systems in processing industries and import and export of both raw materials and finished products.
MG Warrier
Mumbai
WTO overly biased
Apropos ‘Fishery sops: India rejects WTO draft, sees advanced nations bias’ (November 12) — India’s bold stand to reject the WTO draft on Fisheries subsidies is justified, which once again proves that WTO cannot do the bidding of developed nations.
If one goes by the quantum of subsidies given in China, EU, US and Korea and their extension beyond allotted EEZ, what India offers to its farmers in millions is a pittance.
Unless India’s protest gets reinforced and supported by other nations, only to send a stern missive to WTO that it is a governing body to safeguard the interests of all its members without any favouritism is not enough.
Rajiv Magal
Halekere Village (Karnataka)