I pustom custom tents think structural reforms are happening, are on their way and growth steadily is. It went with the late G. "Also, many of them have the capacity to sustain the existence as public sector entities provided we improve the governance.Admitting that the banking sector is under stress in India, Dr Rajan said, "Ours is not a retail problem..Confident of clearing up the bad-loan mess, RBI governor Raghuram Rajan on Friday said that there is "absolutely no chance of a Lehman moment" (failure of banks) in India and a three-cornered firewall was being created to safeguard the economy from external shocks.
There is also absolutely no chance there will be a Lehman moment. It is a wholesale problem. We just need to make sure the debt levels are appropriate," he added.At this point, the real issue is for most of these banks clean up their balance sheets without it is hard to imagine a private investor coming in without clean balance sheet.Their mutually-destructive, collective defeat was written into the script from the word go on both occasions.Asked about bad loan problem in India being bigger than the size of New Zealand’s $170 billion economy and whet-her there was risk of a banking crisis, Dr Rajan said, "I do not think it’s that big.If Ms Jayalalithaa has not bothered about relatively bigger allies, it may be due to the perception that they exist only in name, without any substantial voteshare to add against the seats they would demand.