Raghuram Rajan blames this for bad loans crisis in banks
The parliamentary committee looking into the issue of mounting NPAs had asked Raghuram Rajan to appear before it. The former RBI Governor was reportedly invited after former CEA Arvind Subramanian praised him before the panel for identifying the NPA crisis.
Raghuram Rajan told the House panel that banks failed to do 'due diligence' on large loans and relied on promoters. He added that post-2008 slowdown made growth projections of banks unrealistic. Image source: PTI