Par panel calls ex-RBI governor Raghuram Rajan to brief on mounting NPAs
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Par panel calls ex-RBI governor Raghuram Rajan to brief on mounting NPAs

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New Delhi: A parliamentary committee looking into the issue of mounting non-performing assets (NPAs) has asked former Reserve Bank of India (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...

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