This refers to the report "Current system protects large promoters: Rajan" (November 26). Reserve Bank of India (RBI) Governor Raghuram Rajan's full speech, available on RBI's website, is a unique amalgam of raw wisdom and eloquence rarely seen in the Indian financial system, effectively conveying Rajan's anguish. Interestingly, these views are coming from a person who is to carry the cross if some good is to come out of the current bad loans position.
Indian bankers should heed the advice on asking for more capital contribution, initially and also develop capabilities to monitor the continuity of the capital over the life of the project. Rajan's talk must not leave anyone in doubt that he is also miffed by the bankers' incompetence in recovering these loans. With Rajan also heading the public sector banks' chairmen selection panel, such guidance could not be more timely for the bankers.
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Indian bankers should heed the advice on asking for more capital contribution, initially and also develop capabilities to monitor the continuity of the capital over the life of the project. Rajan's talk must not leave anyone in doubt that he is also miffed by the bankers' incompetence in recovering these loans. With Rajan also heading the public sector banks' chairmen selection panel, such guidance could not be more timely for the bankers.
Y P Issar Karnal
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number