Highlights from Raghuram Rajan’s note on Non-Performing Assets

Episode 417,   Sep 11, 2018, 04:40 PM

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Why did NPAs occur? Why did the RBI set up various schemes to restructure debt and how effective were they? Why recognize bad loans? Did the RBI create the NPAs? Why did RBI initiate the asset quality review? Did NPA recognition slow credit growth, and hence economic growth? Why do NPAs continue mounting even after the AQR is over? What could the regulator have done better? How should we prevent recurrence?

These were the big questions that Rajan answered in his note, and those answers, in addition to his views on the depreciation of the rupee, emerging market scenarios, and global trade war concerns will be the prime focus of our Story of the Day. My name is Rakesh, and you are listening to Moneycontrol.