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This is with reference to "Homing into trouble" (Business Line, October 12): The RBI's fear of default of housing loans mounting and becoming unmanageable appears to be an over-reaction to a very positive trend.

In the context of the middle class employees earning handsome pay packets chiefly in the IT and ITES sectors, those hitherto not owning a home have joined the ranks of home-loan takers. This is a welcome trend. The fact that defaults are rising in the sector should not be a reason to go slow in this matter. Defaults can be attributed to defective processing of requests and inadequate securitisation, which are matters that can be corrected at sanctioning stage. Taking into account the scale of non-performing assets already built up by the banking sector, the housing sector should not be a source of worry due to defaults.

T. R. Anandan

Coimbatore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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