India’s central bank governor has said there is no chance of a “Lehman moment” in India. Speaking to CNBC, Raghuram Rajan, the governor of Reserve Bank of India said while there is no banking crisis in India, it is important that banks clean up bad assets.
“There is absolutely no chance we will have a ‘Lehman’ moment,” Rajan said, referring to the collapse of the U.S. bank that triggered a chain reaction which led to the 2008 financial crisis.
“It is about ensuring that the assets are cleaned up and investors have a good idea of the balance sheets of the bank and that process is under way and some banks have cleaned up much faster than the pace that we had set for them,” he added.
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Craig Erlam
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