Raghuram Rajan speaks after decision to leave RBI, says I will be around don’t write me off

By: | Updated: June 22, 2016 6:04 PM

Rajan urged the country to clean up the bad debt held by its banks, calling it key to achieve stronger economic growth...

Raghuram Rajan second term, Raghuram Rajan quits, Raghuram Rajan resigns, Raghuram Rajan 2nd term, Raghuram Rajan policy, Raghuram Rajanhievements?I am here to talk on resolution of financial distress,?Raghuram Rajan told the audience (Express Photo)

Raghuram Rajan, the Governor of Reserve Bank of India, on Wednesday said that he would still be around somewhere in the world, probably a lot in India and asked everyone not to write him off. The speech in Bengaluru is his second public appearance since Rajan unexpectedly said on Saturday he will step down after his tenure ends in September

“I am here to talk on resolution of financial distress. I am talking about obituaries rather than birth announcements. I feel like in last few days, I have read lot of my obituaries and I am still here for two and half months in this job,” Rajan told the audience.

Also Read: The nuances of RBI Governer Raghuram Rajan stepping down

Rajan urged the country to clean up the bad debt held by its banks, calling it key to achieve stronger economic growth, in his second public appearance since saying he will step down in September.

In a speech, the RBI Governor defended the actions taken by the central bank, including ordering state-run banks to conduct comprehensive asset quality reviews of their balance sheets.

Rajan urged state-run banks and company promoters to deal with the problem, while also calling on the government to infuse capital to the sector – steps he has previously advocated during his tenure.

“To the question of what comes first, clean up or growth, I think the answer is unambiguously “Clean up!,” Rajan said.

Rajan last week announced that he would return to academic world at the end of his term on September 4, 2016, adding he will always be available to serve his country when needed and asserted that his ‘successor’ would take the nation to new heights.

The broadside comes amid uncertainty over who might succeed Rajan at the central bank when his term expires in September.

Others who are said to be in the fray for the RBI top job include SBI chief Arundhati Bhattacharya, former RBI deputy governor Subir Gokarn and Economic Affairs Secretary Shaktikanta Das.

RBI Deputy Governor Urjit Patel and Chief Economic Advisor Arvind Subramanian were also considered to be in reckoning.

Sources in Finance Ministry said the government is close to picking the successor of Rajan, the appointment, they said, was likely by mid-July.

Sources said the appointment to RBI will be made by Prime Minister Narendra Modi in consultation with Finance Minister Arun Jaitley.

(With inputs from Agencies)

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