Dividend bonanza
This refers to the news report ‘Govt to rake it in as PSB pay handsome dividends for FY23’ (May 25). One really wonders why the government still nurses the idea of privatisation of PSBs. Occasional reports of impending privatisation have created avoidable confusion.
It is time the government came out with a clear long-term road map for the future of PSBs so as to remove the sword of Damocles hanging over their head.
Manohar Alembath
Kannur (Kerala)
GDP growth looking up
This refers to ‘Next print of inflation likely to be lower than 4.7%; no room for complacency: RBI Governor’ ( May 25). The Reserve Bank Governor Shaktikanta Das’s observations on Wednesday that the retail inflation has moderated, and the next print is expected to be lower than 4.7 per cent (a by-product of cooling food prices) may hopefully bring much needed relief in the day-to-day lives of the people hit hard by inflation.
However, he has also gone on record to point out that there is no room for any complacency and the war on inflation will continue with the RBI remaining alert to the evolving situations, all sensible observations.
Such a scenario obviously implies that the RBI mandated six-member MPC may continue with the extant repo-rate of 6.50%, during its next bi-monthly meeting slated for June 6-8, 2023 alongside no changes in the Reverse Repo-rate 3.35%, Bank Rate (BR) and Marginal Standing Facility (MSF) 6.75% and Standing Deposit Facility (SDF) rate 6.25% too.
For sure, such a move may help people seeking bank credit, lessen economic uncertainties, and set the economy on a higher growth path.
Kumar Gupt
Panchkula (Haryana)
Bullish on GDP
RBI Governor Shaktikanta Das’s forecast on the GDP crossing 7 per cent has its basis on low gross non- performing assets and increased production capacity .
However, the government needs to have a go green strategy in place by promoting electric and solar energy appliances as it would cut expenses on hydrocarbons.
Vikram Sundaramurthy
Chennai
Salary disparities
This refers to the article “Are Indian CEOs’ salaries too high?” (May 25). For ensuring parity, CEO compensation needs to consider what other companies pay (eternal equity) and what other employees in the company get (internal equity). Factors like profit after tax, return on assets, total shareholder value, size of business and the like are relevant.
Indian CEOs rank low on both. Compared to US their pay is too low, but some of that inequity is balanced by the fact that India’s largest companies are no match for the US’ — say Tata Motors vs GM.
Within India significant differences exist between CEO salaries of family-owned companies (like Reliance Industries) and professionally managed companies (Tata Group) as also between the remuneration of public sector and private sector CEOs.
As for pay ratios (a measure of internal equity) the gap is wide enough in terms of present pay and pay increases. This is one reason for potential social tension between the lowest-paid employees and the top brass.
YG Chouksey
Pune
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