Sanjiv Bajaj, managing director, Bajaj Finserv, sees an NBFC licence as more of learner’s driving licence and banking as a permanent one.
"Those who argue that public sector banks are in good health simply do not understand that they are condemning them to oblivion," Rajan said.
If the India story needed a fresh salesman in the international markets whom investors would trust, it has that in Rajan.
Subbarao drove into Mint Street in September 2008 during the financial meltdown. Policy choices then were more in the hands of the US Fed.
The Indian economy probably faces its worst crisis in more than two decades and many are throwing in the towel. The world has changed and investors are also changing.
The rupee was close to finding new lows on Wednesday versus the US dollar after Subbarao said he won't defend the direction of the rupee.
Options are narrowing: Suffer high interest rates for a short period and put the house in order even if it sacrifices economic growth.
Inflation is now under control and we need to revive the economy. The more imminent issue to address is the currency, says Mihir Doshi.
Inflation is at a near-three-year low of 4.86% and economic expansion is crawling but sliding currency is more concerning.
A depreciating currency could be welcomed as a boon for a country suffering from a record high current account deficit.
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