Raghuram Rajan Blames 'Over Optimistic Bankers' and 'Policy Paralysis' for Mounting Bad Loans
New Delhi, Sept 10: Former RBI governor Raghuram Rajan has blamed the “over optimism of bankers” and “policy paralysis” for mounting non-performing assets (NPAs) in his reply to a parliamentary committee which had sought his views on the pressing issue.
In a report, CNBC TV-18 quoted sources as saying that Rajan told the Murli Manohar Joshi-led panel that banks didn’t do “due diligence” on large loans and the post-2008 slowdown made their growth projections quite unrealistic
Fmr @RBI Guv Raghuram Rajan sent note on causes, cures of NPAs to Estimates Committee, says NPAs caused by bankers' over-optimism, growth slowdown: Sources to @latha_venkatesh #CNBCTV18Exclusive
— CNBC-TV18 (@CNBCTV18Live) September 10, 2018
Alert: Estimates Committee had requested Rajan for his take on NPAs pic.twitter.com/C7CiRuL8S3
The former RBI chief is also learnt to have said that banks extended more loans to prevent ‘zombie’ loans from turning non-performing assets.
The Parliament's Committee on Estimates had invited Rajan to brief it on the matter after former Chief Economic Advisor (CEA) Arvind Subramanian praised him for identifying the NPA crisis and trying to resolve it.
Rajan, who was RBI governor for three years till September 2016, is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business.
#CNBCTV18Exclusive | Rajan on his note to the committee adds PSU banks personal & housing loans didn’t slow despite Asset Quality Review (AQR) pic.twitter.com/0awI4mSY4C
— CNBC-TV18 (@CNBCTV18Live) September 10, 2018
The panel has already questioned senior finance ministry officials, including Finance Secretary Hasmukh Adhia and top brass of banks, about rising bad loans.
Members of the panel also demanded various documents including minutes of the board meetings of the public sector banks, in which high-ticket value loans were approved. The banking sector is grappling rising non-performing assets, which touched Rs 8.99 trillion or 10.11 per cent of the total advances at December-end 2017.
#CNBCTV18Exclusive | Raghuram Rajan on his note to Estimates Committee says had sent list of high-profile fraud cases to PMO for co-ordinated investigation pic.twitter.com/U5nEeGlvlD
— CNBC-TV18 (@CNBCTV18Live) September 10, 2018
Of the gross NPAs, the public sector banks accounted for Rs 7.77 trillion. The rising number of banking frauds has also become a serious cause of concern.
Courtesy: www.news18.com
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Will let my work talk: Raghav Chadha in Instagram post amid rift with AAP
New Delhi (PTI): Sidelined AAP Rajya Sabha MP Raghav Chadha on Friday shared on Instagram a video titled "Voice Raised Price Paid", a compilation of clips of him raising various issues in Parliament, amid his ongoing rift with his party.
"With due respect, to those who are questioning my parliamentary performance, I will let my work do the talking," he said in the post.
The AAP on April 2 removed Chadha as its deputy leader in the Rajya Sabha and has accused him of shying away from raising his voice against Prime Minister Narendra Modi and the Centre in Parliament and instead engaging in "soft PR".
A combative Chadha has dismissed the party's allegations as "lies" and said that he went to Parliament to raise people's issues and not to create ruckus.
Since his removal as the AAP's deputy leader in the Upper House, Chadha has shared several videos and posts on social media, making it clear that he will not take his demotion lying down.
