CEA Arvind Subramanian praises Raghuram Rajan for identifying NPA problem
Outgoing CEA raised apprehensions about the handling of the rising non performing assets (NPAs) and indicated that a lot needed to be done, a member who was present in the meeting said on the condition of anonymity. Subramanian, the former economist at the International Monetary Fund (IMF) was forthcoming in his briefing to the panel and mentioned that the former RBI Governor was instrumental in identifying the problem, another member said. He also appreciated Rajan for his efforts in tackling the crisis, the member added.
Subramanian also said that there was an environment of fear among the bankers and they were reluctant to lend besides retail lending. Image source: Reuters