Raghuram Rajan calls for change in appointment process in state banks
Mumbai: Reserve Bank of India (RBI) governor Raghuram Rajan said on Monday there was a need to change the management appointment process in public sector banks to make it more transparent.
The central bank is in talks with the government to improve governance in public sector banks, Rajan told a banking conference. He said problems that have emerged in recent bank scandals were due to outsourced project evaluation.
On macroeconomic indicators, Rajan said India’s situation is improving and inflation has been coming down, consistent with the central bank’s forecast, but Asia’s third-largest economy needs investment growth to pick up.
Rajan, however, said Friday’s industrial output and inflation data suggested that recovery was “uneven”.
The index of industrial production (IIP) grew by a much slower-than-expected 0.5% year-on-year, government data showed on Friday, down from June’s revised 3.9% rise.
Retail inflation, which the RBI tracks for setting lending rates, edged down marginally to 7.8% in August from 7.96% a month earlier. RBI governor said that inflation was still high and there was no point in cutting interest rates to see inflation pick up again.
The central bank wants to bring down interest rates when it is “feasible”, Rajan said. Reuters
Akanksha Shanu
PGDM 3rd sem.
2013-15
Source:- Mint.
Mumbai: Reserve Bank of India (RBI) governor Raghuram Rajan said on Monday there was a need to change the management appointment process in public sector banks to make it more transparent.The central bank is in talks with the government to improve governance in public sector banks, Rajan told a banking conference. He said problems that have emerged in recent bank scandals were due to outsourced project evaluation.
On macroeconomic indicators, Rajan said India’s situation is improving and inflation has been coming down, consistent with the central bank’s forecast, but Asia’s third-largest economy needs investment growth to pick up.
Rajan, however, said Friday’s industrial output and inflation data suggested that recovery was “uneven”.
The index of industrial production (IIP) grew by a much slower-than-expected 0.5% year-on-year, government data showed on Friday, down from June’s revised 3.9% rise.
Retail inflation, which the RBI tracks for setting lending rates, edged down marginally to 7.8% in August from 7.96% a month earlier. RBI governor said that inflation was still high and there was no point in cutting interest rates to see inflation pick up again.
The central bank wants to bring down interest rates when it is “feasible”, Rajan said. Reuters
Akanksha Shanu
PGDM 3rd sem.
2013-15
Source:- Mint.
No comments:
Post a Comment