Raghuram Rajan blames over-optimistic bankers for the bad loans
Image Credit: NDTV
In a note to the Parliamentary panel, former RBI governor Raghuram Rajan blamed the over-optimistic banker, slowed down govt decision-making process to be the contributing factors in the bad loans. He said during 2006-2008 economic growth was strong and the bankers became over-enthusiastic which resulted in the bad loans. Unfortunately, the growth did not stay forever and the global financial crisis affected everything.