as many non-bank lenders struggle with bad assets and corporate governance issues, according to reports.during Rajan's tenure at the central bank, local media reported.
When asked about those comments, Rajan pointed out that most of his term as RBI governor was served under Indian Prime MinisterIndia's banking troubles began in 2007 and 2008, before the global financial crisis, when a lot of investments were made, Rajan explained. Those investments created a lot of bad loans that needed to be cleaned up in order to spur lending. Banks are the biggest source of funding for Indian companies.
"There are people who say, why did we clean up? We could have gone on," the former RBI governor said. "We simply couldn't have gone on because banks were stopping lending because their balance sheets were getting clogged with non-performing assets." "So, you had to force the recognition and the recapitalization to set them back on track — that is a half-finished job right now. It has to be finished," Rajan added. "We need to clean up, but also clean up the new risks that have emerged, for example, in the non-bank financial system. If we don't do that, the financial system is going to be an overhang over the economy."
Umm this guy presided over a massive increase in NPAs. He should sit this out
What else is the govt doing? What exactly did he do other than giving daily gyaan in media
This is what narendramodi govt. has been doing and they have succeed most part of it. AmitShah