I am writing with reference to the write-up ‘Owning the weather?’ by Rahnuma Ahmed (February 8).
   As I write this letter, CNN reported that life in Washington DC and adjoining areas have been paralysed by a blizzard never seen before. With two metres (six feet) of snows piling up, the city has come to a virtual standstill. Most people cannot go to work and most business has been shut down. This year, the United States has seen devastating floods in California, Nevada, Dakota and other mid-western states causing devastation of roads, homes and farms worth billion of dollars. Pacific hurricane caused staggering damage to Southern California last year.
   If the Americans cannot stop such hostile weather from devastating their own country, it will be naive to think they can play God to control the nature. By writing about controlling weather, Rahnuma Ahmed is giving Americans supernatural powers they cannot even dream of.
   Mahmood Elahi
   Ottawa, Canada

An interesting, though rather analytically shallow; article on the matter, was published in a local English daily on January 29. It covered the yearly growth for four consecutive years (2005 to 2008) is a study in contrast. While the private banks grew steadily, the status of state-owned banks’ interest income remained fairly static and moribund, at around 7.8 to 9 billion taka! In contrast, private bank interest income grew regularly; from 20 billion in 2005 to 48 billion taka in 2008; which had practically more than doubled in four years!
   Unfortunately, the writer did not analyse the reasons that may have caused this substantial difference. Some more data extrapolated in the same graphical presentation would have possibly shown some trends that co-related to this state of affairs. Among others, the interest on deposits, and other term instruments of savings and the interest charged on overdrafts, and other banking related charges levied on loans, by the different types of banks (public, private and foreign), would have been more illuminating. Also an analysis of the ‘spread’ of these different banks, would have thrown further light on the matter. Additionally, the volume of non-performing and bad debts would have possibly reflected on the type of management practiced by the different types of banks.
   I believe that there is not any great difference among the professionals who run the banks be it state-owned or private. Also I am not sure what is the pragmatic difference between the ‘quality of services’ offered by different bank types. The term is rather broad and open-ended to be a reasonable and objective criteria of judgment.
   I believe that the real reason could be the board of directors that set the banks policies and modality of operation. With many political appointees in the state-owned bank board of directors there is a tendency of patronising and relaxation in customer short and long term debt management criteria. Public sector banks are often forced to accept non-performing credit lines at the direction of their board whose members with political clout can demonstrate more authority, overshadowing financial analysis and responsibility in a subjective, and not objective manner; a key criteria of bank management.
   More often than not, state-owned banks are saddled with such non-performing portfolios by their influential directors, with political support; having no financial stake in the bank. Quite often, it is the result of this political pressures acting in the background! This could well be the real cause for their poor performance of public sector banks.
   More opinion on this matter from the readers may help us in identifying the overlying issues more objectively.
   A citizen
   Dhaka

A news report, highlighting the Trust Banks thrust for financing the biogas sector, was published in a local Emglish daily on January 31. It was a good news for energy starved Bangladesh. However, I felt that the report was to an extent incomplete to be really attractive for prospective investors or motivators who could encourage and influence their sources in the village level to go for the proposal.
   The report stated and I quote: ‘A beneficiary will buy four cows with the money’. It would have been better if it had stated that ‘A beneficiary can set up a bio-gas plant and also buy four cows with the money’. That would have been more to the point. However, no mention was made of the repayment terms and the period of repayment which are naturally important factors for the small rural borrowers.
   Without these important and relevant information, the report was to that extant incomplete. Another important information missing was that whether the interest would be calculated on simple or compound rate basis as well as if there was any up-front or transaction charge, that had to be paid to the bank.
   However this is an attractive proposition, and hopefully it will encourage people to set up many bio-gas plants. Enterprising banks should in the same manner finance the setting up of solar panels in urban as well as rural areas to overcome our desperate shortage of electricity.
   SA Mansoor
   Dhaka