• About Us
      Asia’s 1 st LEED Platinum Rated Campus

      Asia’s 1st LEED Platinum Rated Campus

      About Us

      • Chairman's Message
      • Vice Chairman & CEO
      • Dean's Message
      • Governing Council
      • Business Advisory Council
      • Academic Advisory Council
      • Work With Us
      • Mandatory Disclosure
      • Anti-Ragging Notice

      TERM ZERO

      Media

      • News
      • Events
      • In Media
      • Media Kit

      Rankings

      Accreditations

      NIRF

      Campus

      Blog

      Annual Events

      • Convocation
      • TEDxGLIMChennai
      • L'Attitude
      • Digital Symposium
      • Sangamitra
      • Annual Alumni Meet
      • SWIM
      • IEC
      • Human Capital Management
  • Programs
      Transform and Lead

      Transform and Lead

      Full Time Programs

      PGPM

      One Year MBA for professionals with work experience

      Learn More Apply Now

      PGDM

      Two Year MBA for professionals with 0-2 years of work experience

      Learn More Apply Now

      EXECUTIVE EDUCATION

      Partner with us for customized learning solutions for your organisation

      Learn More

      Corporate Programs

      PGXPM

      Executive program for Mid & Senior Level working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      PGPM Flex

      Weekend management program for young working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      MBA in Business Analytics

      Family Enterprises Management

  • Faculty & Research
      Ranked 6th

      Ranked 6 th

      by NIRF ranking in teaching and learning among all B-Schools in the country

      Faculty

      • Full Time Faculty
      • Visiting Faculty
      • Adjunct Faculty

      Research

      • Faculty Editors
      • Papers & Journal Publications
      • Case Studies & Books
      • Conference Proceedings

      Centers of Excellence

      • Centre For Excellence in Retail Management
      • Great Lakes Centre For Management Research
      • Kotler - Srinivasan Centre for Research in Marketing
      • Centre for Excellence in Business Analytics and Business Intelligence
      • CET
      • Union Bank Centre for Banking Excellence

      Conferences

      • NASMEI
      • Financial Conference
  • Recruiters & Companies

      “Great Location for Talent. We are happy to continue visiting and having budding professionals join us and grow their careers.”

      Anil Visal

      Partner - Deloitte India

      Campus Recruitment

      • Recruitment Process
      • PGDM Class Profile 2018-20
      • PGPM Class Profile 2019-20
      • Past Recuiters
      • Student Achievements
      • Recruiters Speak

      Internships

      • Recruitment Process
      • PGDM Class Profile 2019-21
      • Live Projects

      Placement Reports

      • PGPM
      • PGDM
      • Internship Report

      Leadership Series

      • Titans Speak
      • Industry Lecture Series
      • Thought Leader Series

      Talent Listings

  • Alumni

Thoughts on RBI Governor Dr. Raghuram Rajan’s departure By Dr. Bobby Srinivasan

June 30, 2016 | Posted by bobbysrinivasan << back to blog

It is seldom that we see the Governor of a Central Bank delivered his job with such insight and clarity as Dr. Rajan did during his tenureship at the helm of RBI which lasted 3 years. He was given a mandate to control the rate of inflation which he delivered with great aplomb. Currently our inflation rate is around 5 to 6%. His reasonably tight monetary policy and not succumbing to undue pressure from the government showed that he believed in his cause and wouldn’t compromise under any pretext. The Modi government was expecting a ‘Yes’ man. But he didn’t fit the bill. Of course, he didn’t take the inflation fight all the way like Dr. Paul Volcker, former US Red Reserve Chairman but accepted to cut the repo rate several times during his tenure.

 

Dr. Rajan was both surprised and bemused at the attitude of Indian Banks. They would not pass on the entire rate cut benefits to the borrower from them. Instead they kept a significant chunk of it to pay for the incredulous non-performing asset bill which they had accumulated over time Dr. Rajan served on ultimatum to these banks to come out with the accurate balance sheet by providing for all the NPA’s. According to some estimates nearly 13 trillion rupees of bank lending or 16 to 17% of lendable funds are locked in NPA’s. The government would have wanted him to keep lowering the interest rate to accommodate for the misadventure of these banks. Instead he forced the banks to come out with the true picture. There is no going back for these banks and all that was hidden under the carpet are currently coming to the surface. If at a later point in time transparency and governance became the hall mark of our banks undoubtedly the credit should go to Dr. Rajan’s efforts.

 

One of the complaints against Rajan was his tight money policy which according to some critics of him made many small and medium enterprises go bankrupt. This is more of an excuse than tact. If those enterprises were counting on the Reserve Bank’s generosity to survive then there is something wrong in their business model and management.

 

In the years to come Dr. Rajan’s management of RBI will be greatly appreciated. He always harped upon efficiency and improved productivity. This culture spread across the fiscal policy as well and the government is now keeping a lid on the budget deficit for the last couple of years. Dr. Rajan has always been championing this cause since he believed that fiscal irresponsibility will ultimately lead to asset bubbles and inflation.

 

The government will be taking steps a find a suitable successor to replace Dr. Rajan. They will need somebody who will support their cause of sustained economic growth and providing liquidity even if it is at the cost of higher inflation. Their argument would be that the Indian inflation rate is also a supply side problem and hence the monetary policy will not achieve anything independently. The global economic environment is very murky now with too many uncertainties. Whoever will replace Dr. Rajan, he will find the job highly challenging.

<< back to blog

Programs

PGPM - One Year MBA for professionals with 2+ years work experience

Learn More >

PGDM - Two Year MBA for graduates with 0-2 years work experience

Learn More >

Events

Union Bank Finance Conference
Dec 17, 2020

Networking with Champions
Nov 08, 2020

Harry Kraemer on Performance with A Purpose
Oct 08, 2020
Read more

Successful Women in Management (SWIM) Lecture Series
July 05, 2020
Read more

The Great Circle Alumni Talk Series
July 04, 2020
Read more

  • About Us
  • Programs
  • Faculty & Research
  • Recruiters & Companies
  • Alumni
  • Blog
  • Contact Us