Raghuram Rajan warns against 'unprecedented' rise in NPA levels in 6 months

Rajan cautioned that one should not mistake pent up consumption for normal consumption.

Former Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday expressed disappointment over Finance Minister Nirmala Sitharaman's observations in a newspaper article written by her on Tuesday.  He warned that banks were going to see an unprecedented rise in bad debts and the sooner the problem is recognised the better it would be.
 

At an event organised by the National Council of Applied Economic Research (NCAER), Rajan said that in her article, the finance minister talked about how wonderful Gyan Sangam had been for bank reforms, but he warned that the level of non-performing assets (NPAs) was going to