Rajan’s Departure Leaves India Bank Cleanup as Unfinished Task

  • Indian central-bank governor had campaigned against bad loans
  • Removing bad debt key to stimulating loan growth, economy

Raghuram Rajan, governor of the Reserve Bank of India. Photographer: Simon Dawson/Bloomberg

Raghuram Rajan’s announcement that he won’t seek a new term as governor of the Reserve Bank of India leaves a key policy challenge to his successor -- the successful completion of a clean-up of more than $100 billion of stressed assets on the books of Indian banks.

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