Modi Ally Backs Indian Central Bank Chief in Spat With State

A top ally of Indian Prime Minister Narendra Modi, who was key in a campaign to oust a former central bank chief, has come out in support of Governor Urjit Patel in his current dispute with the government.

Subramanian Swamy -- a member of Modi’s ruling party whose criticism of Raghuram Rajan and the absence of any backing from the government contributed to him not seeking a second term as central bank chief in 2016 -- said Patel should remain in his post. That followed a week of drama as the central bank stands its ground in cleaning up a banking system saddled with bad debt, while the government pushes for easier lending rules for some of the weakest banks.