Former RBI Governor Raghuram Rajan blamed over-optimistic bankers, slowdown in government decision making process and moderation in economic growth as the reasons behind the mounting bad loans in the country. Rajan also blamed the policy paralysis that delayed the ongoing projects due to slow decision-making in the UPA government after it was accused of various scams. In his reply to 30-member Lok Sabha Committee on Estimates, he said, “A variety of governance problems such as the suspect allocation of coal mines coupled with the fear of investigation slowed down government decision making in Delhi, both in the UPA and the subsequent NDA governments”. In a note to Chairman of Estimates Committee Murli Manohar Joshi, he said a larger number of bad loans were originated in the period 2006-2008 when economic growth was strong, and previous infrastructure projects such as power plants had been completed on time and within budget.

Former RBI Governor Raghuram Rajan blamed over-optimistic bankers, slowdown in government decision making process and moderation in economic growth as the reasons behind the mounting bad loans in the country. Rajan also blamed the policy paralysis that delayed the ongoing projects due to slow decision-making in the UPA government after it was accused of various scams. In his reply to 30-member Lok Sabha Committee on Estimates, he said, “A variety of governance problems such as the suspect allocation of coal mines coupled with the fear of investigation slowed down government decision making in Delhi, both in the UPA and the subsequent NDA governments”. In a note to Chairman of Estimates Committee Murli Manohar Joshi, he said a larger number of bad loans were originated in the period 2006-2008 when economic growth was strong, and previous infrastructure projects such as power plants had been completed on time and within budget.