Raghuram Rajan blames scams and ‘policy paralysis’ under UPA government for NPA mess
6 years, 4 months ago

Raghuram Rajan blames scams and ‘policy paralysis’ under UPA government for NPA mess

Op India  

In response to a letter that sought his inputs over the issue of the accumulated Non-Performing-Assets of Indian banks, former RBI governor Raghuram Rajan has written a letter to the head of the Lok Sabha panel set to look into the matter. According to reports, in his letter addressed to MP Murli Manohar Joshi, the former RBI governor has written that the problem of accumulating NPAs has begun from around 2006 and has blamed UPA era scams, policy paralysis among other things. Rajan also reportedly emphasized that the scam-ridden UPA government was slow in decision makings and it had created a policy paralysis for the banking sector which had delayed several ongoing projects. NITI Ayog chairman Rajiv Kumar had recently stated that the faulty methods of identifying and demarcating NPAs implemented during Rajan’s time had led to NPAs ballooning from 4 lakh crores to 10 lakh crores, thus causing the banks to pull back their extended credits thereby resulting in companies becoming starved of their working capital, which had caused a slowdown in India’s economy.

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History of this topic

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’
3 weeks, 4 days ago

Raghuram Rajan recalls having ’plenty of cooperation’ with govt as RBI governor: ‘Whether BJP or Congress…’

Live Mint  

Former RBI governor Raghuram Rajan recalled having an amicable relationship with the government during his tenure as RBI governor — irrespective of the party in power. The former top official also recalled a conversation with then Finance Minister Arun Jaitley where he was given the green signal to “clean up” the system after bad loans “tumbled out” during an asset …

Former RBI Governor Raghuram Rajan says US economy on cusp of time bomb
1 year, 8 months ago

Former RBI Governor Raghuram Rajan says US economy on cusp of time bomb

Firstpost  

Former Reserve Bank of India Governor Raghuram Rajan has expressed his views about the global economy and global economic challenges. In a podcast with DBS Bank’s Chief Economist Taimur Baig, Rajan said that the way the US authorities handled the banking crisis was somewhat predictable. However, another banking giant, Credit Suisse, was caught in huge financial troubles until the US …

Sri Lankan President Gotabaya Rajapaksa admits mistakes led to economic crisis
2 years, 8 months ago

Sri Lankan President Gotabaya Rajapaksa admits mistakes led to economic crisis

India Today  

Sri Lanka's president acknowledged Monday that he made mistakes that led to the country's worst economic crisis in decades and pledged to correct them. President Gotabaya Rajapaksa made the admission while speaking to 17 new Cabinet ministers he appointed Monday as he and his powerful family seek to resolve a political crisis resulting from the country's dire economic state. We …

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking
4 years, 1 month ago

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking

The Quint  

He also added that “it is no secret which politically connected business houses will get the first licences and increase their monopolistic power” if the proposal is administered. Speaking for the importance of neutrality of banks, which is maintained even in developed economies, Chidambaram said “It is shocking that such an idea should have been presented to the people as …

Rajan, Viral call for a major overhaul of banking system
4 years, 3 months ago

Rajan, Viral call for a major overhaul of banking system

Live Mint  

Former Reserve Bank of India governor Raghuram Rajan and former deputy governor Viral Acharya have called for winding down of the department of financial services, privatization of state-owned banks and creation of a bad bank as part of the reforms for India’s banking industry. The current status quo is untenable and there is a need for reforming the banking industry …

Raghuram Rajan cautions government on economy again
5 years, 1 month ago

Raghuram Rajan cautions government on economy again

India TV News  

Former Reserve Bank of India governor Raghuram Rajan said India is in the midst of a "growth recession" with signs of deep malaise in the Indian economy that is being run through extreme centralisation of power in Prime Minister's Office and powerless ministers. Stating that previous governments may have been untidy coalitions but they consistently took path of further economic …

India is in the midst of growth recession: Raghuram Rajan
5 years, 1 month ago

India is in the midst of growth recession: Raghuram Rajan

India Today  

Former Reserve Bank of India governor Raghuram Rajan said India is in the "midst of a growth recession" as there is significant distress in the rural economy. On the fiscal side, recent corporate tax cuts, which were a short-term boost to stock prices, may not deliver much-needed business investment when there are so many other impediments," Rajan said. "While growth-boosting …

Instead of gigantic statues, India should build modern schools and universities: Raghuram Rajan
5 years, 1 month ago

Instead of gigantic statues, India should build modern schools and universities: Raghuram Rajan

India Today  

Former Reserve Bank of India Governor Raghuram Rajan has said Hindu nationalism does not just foment social tensions but also detracts India from its economic growth. Reflecting on the socio-political agenda of the Modi government, Raghuram Rajan said, "Instead of building gigantic statues to national or religious heroes, India should build more modern schools and universities that will open its …

Economy in a mess: Raghuram Rajan lists 5 burdens that Modi govt inherited from UPA
5 years, 1 month ago

Economy in a mess: Raghuram Rajan lists 5 burdens that Modi govt inherited from UPA

India Today  

In May 2014, when Narendra Modi became India's prime minister, he inherited a number of problems from the previous Congress-led UPA government, former Reserve Bank of India Governor Raghuram Rajan has said. Raghuram Rajan said this in an essay written for India Today Magazine titled 'How to fix the economy'. Here are the five burdens Rajan says PM Narendra Modi …

Rajan reminds Sitharaman: Two-third of his tenure as RBI Guv was under BJP
5 years, 2 months ago

Rajan reminds Sitharaman: Two-third of his tenure as RBI Guv was under BJP

India TV News  

Former RBI Governor Raghuram Rajan, who faced a stinging attack from Finance Minister Nirmala Sitharaman for presiding over the "worst phase" of the Indian banking sector, on Thursday reminded her that two-third of his tenure as the head of the central bank was under the BJP government. Rajan, who was Governor of the Reserve Bank of India from September 5, …

Raghuram Rajan expresses concern over India's economic slowdown
5 years, 3 months ago

Raghuram Rajan expresses concern over India's economic slowdown

India Today  

Former Reserve Bank of India Governor Raghuram Rajan has expressed concern over India's fiscal deficit figures, stating that it is the likely reason behind the slowdown in Indian economy. Addressing an audience during his OP Jindal lecture at Brown University, Rajan said the uncertainty surrounding the overall economic vision of government is one of the reasons behind India's slowing economy. …

State-run banks should be freed of constraints, says Raghuram Rajan
5 years, 6 months ago

State-run banks should be freed of constraints, says Raghuram Rajan

Live Mint  

Public sector banks might perform better if they are freed from some of the constraints they operate under but such freedom typically requires distance from the government, says former Reserve Bank of India governor Raghuram Rajan. "Certainly, if public sector banks are freed from some of the constraints they operate under they might perform far better," he says. There certainly …

Raghuram Rajan says he will return if there is an opportunity to be of use; says country needs new set of reforms
5 years, 9 months ago

Raghuram Rajan says he will return if there is an opportunity to be of use; says country needs new set of reforms

Firstpost  

Raghuram Rajan said it was “premature” to discuss if he was approached by any of the parties to take up a policy-making position if they were to win. New Delhi: Amid speculation that he may be the finance minister if an Opposition alliance wins the ensuing general elections, the former Reserve Bank of India governor Raghuram Rajan has said he …

Opinion | A bad loan farce gets another rerun in India
6 years ago

Opinion | A bad loan farce gets another rerun in India

Live Mint  

A new year, a new central bank governor. The solution back then lay in encouraging lenders to send problem loans to so-called corporate debt restructuring an out-of-of-court mechanism that helped banks recover some money in the absence of a modern bankruptcy law. So RBI governor Raghuram Rajan relented and gave lenders new tools—Strategic Debt Restructuring and Scheme for Sustainable Structuring …

The Great Indian NPA Mess: UPA's sins were of commission while NDA's errors are of omission
6 years, 3 months ago

The Great Indian NPA Mess: UPA's sins were of commission while NDA's errors are of omission

Firstpost  

the UPA may be blamed for a combination of political interference and infrastructure adventurism. Editor’s note: A political blame game is on after the recent revelations of former Reserve Bank of India governor Raghuram Rajan to a Parliamentary panel about the origin of the bank NPA mess. The ordinary Indian citizen may be forgiven for being confused about early this …

Raghuram Rajan note to parliamentary panel slams UPA mistakes; Congress blaming Modi for NPAs is bunkum
6 years, 4 months ago

Raghuram Rajan note to parliamentary panel slams UPA mistakes; Congress blaming Modi for NPAs is bunkum

Firstpost  

The political controversy over Raghuram Rajan’s note to Parliament committee chaired by Murli Manohar Joshi on the bank NPA problem is designed to divert the attention from the very problem itself to a useless mud-slinging show. Looking at the facts, there is a big irony in the Congress blaming Prime Minister Narendra Modi for the NPA mess and inaction over …

Raghuram Rajan blames over-optimistic bankers, slowdown in govt decision-making for rising bad loans
6 years, 4 months ago

Raghuram Rajan blames over-optimistic bankers, slowdown in govt decision-making for rising bad loans

The Hindu  

Former RBI Governor Raghuram Rajan has cautioned that the next crisis in India’s banking sector could come from loans given to the unorganised micro and small businesses, called MUDRA loans, and credit extended through the Kisan credit card. In a note on bank non-performing assets prepared at the request of Murli Manohar Joshi, Chairman of the Parliament Estimates Committee, Dr. …

Raghuram Rajan’s prescription to avoid NPAs: Distance PSU banks from govt
6 years, 4 months ago

Raghuram Rajan’s prescription to avoid NPAs: Distance PSU banks from govt

Live Mint  

New Delhi: Distancing state-run banks from the government, timely appointment of top executives and improving governance at these institutions through initiatives including the establishment of stronger boards are some of the policy measures prescribed by former Reserve Bank of India governor Raghuram Rajan to prevent a build-up of non-performing assets in future. Rajan, who submitted a note on non-performing assets …

Raghuram Rajan says bankers’ optimism led to bad loans
6 years, 4 months ago

Raghuram Rajan says bankers’ optimism led to bad loans

Live Mint  

New Delhi: Over optimistic bankers, slowdown in the government’s decision making process and moderation in economic growth contributed to mounting bad loans, former Reserve Bank of India Governor Raghuram Rajan said in a note to a Parliamentary panel. In a note to Chairman of Estimates Committee Murli Manohar Joshi, Rajan said: “A variety of governance problems such as the suspect …

India's NPA crisis: Arvind Subramanian is Raghuram Rajan in slow motion; offers diagnosis but no cure
6 years, 6 months ago

India's NPA crisis: Arvind Subramanian is Raghuram Rajan in slow motion; offers diagnosis but no cure

Firstpost  

Arvind Subramanian speaks now of ‘stigmatized capitalism’ that stops the govt from reformist solutions to the NPA problem. Raghuram Rajan, former governor of the Reserve Bank of India, gave us the term ’non-cooperative defaulter’ to describe the corporate bigwigs who can’t or won’t pay back the loans they took. Third, there are hapless small borrowers including farmers who either commit …

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