GET Stock QuotesNews18 APP
News18 English
»
1-min read

Parliament Panel Calls ex-RBI Governor Raghuram Rajan to Brief on Mounting Bad Loans

Former RBI Governor Raghuram Rajan Rajan was invited after former Chief Economic Advisor (CEA) Arvind Subramanian praised him before the Parliament's Committee on Estimates, headed by veteran BJP leader Murali Manohar Joshi, for identifying the NPA crisis and trying to resolve it.

PTI

Updated:August 19, 2018, 9:42 PM IST
facebookTwittergoogleskypewhatsapp
Parliament Panel Calls ex-RBI Governor Raghuram Rajan to Brief on Mounting Bad Loans
File photo of RBI Governor Raghuram Rajan.
Loading...
New Delhi: A parliamentary committee looking into the issue of mounting non-performing assets (NPAs) has asked former RBI Governor Raghuram Rajan to appear before it and brief on the matter.

Rajan was invited after former Chief Economic Advisor (CEA) Arvind Subramanian praised him before the Parliament's Committee on Estimates, headed by veteran BJP leader Murali Manohar Joshi, for identifying the NPA crisis and trying to resolve it.

Joshi has written a letter to Rajan asking to appear before the panel and brief the members on the issue of mounting NPAs, a source said.

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. The letter has been written to Rajan after Subramanian credited him for identifying the problem, the source said.

Subramanian appeared before the panel last month as CEA and briefed it on the bad loans issue. During his submission, he expressed scepticism over the handling of the NPAs and indicated that big-ticket loans by public sector banks were influenced.

However, he did not elaborate who and how the approvals were influenced. Subramanian also said there was an environment of fear among the bankers and they were reluctant to lend, besides retail lending.

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.

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.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 192.10 -6.20
Indiabulls Hsg 706.60 -3.71
ICICI Bank 357.90 -1.24
Reliance 1,137.40 -1.10
Jet Airways 310.35 -3.83
Company Price Change %Gain
Yes Bank 192.55 -6.10
Varun Beverages 781.90 -0.03
Indiabulls Hsg 707.40 -3.79
Jet Airways 310.10 -3.99
Dewan Housing 225.05 -3.06
Top Gainers
Company Price Change %Gain
GAIL 344.05 2.79
Adani Ports 355.25 1.34
IndusInd Bank 1,557.85 1.29
Bajaj Finance 2,380.10 0.81
Zee Entertain 448.10 0.29
Company Price Change %Gain
IndusInd Bank 1,558.35 1.34
Adani Ports 354.15 1.24
M&M 782.70 0.30
HDFC Bank 2,015.25 0.06
Top Losers
Company Price Change %Gain
Yes Bank 192.10 -6.20
Hindalco 221.95 -5.33
Indiabulls Hsg 706.60 -3.71
Wipro 321.30 -3.47
Dr Reddys Labs 2,443.15 -3.38
Company Price Change %Gain
Yes Bank 192.55 -6.10
Tata Steel 563.50 -3.21
Vedanta 205.10 -2.89
Wipro 321.70 -2.59
NTPC 149.35 -2.42

Live TV

Loading...
Loading...