On 15 September, the Central Bureau of Investigation (CBI) registered a case of corruption against Archana Bhargava, a former chairperson and managing director (CMD) of United Bank of India (UBI), after the agency carried out raids at multiple cities and recovered cash, jewellery and investment of over Rs13.5 crore. Allegedly, Bhargava had abused her official position, first as an executive director (ED) of Canara Bank and later as the boss of UBI for making money for herself and/or for a company in New Delhi, owned by her husband and son.
ndia’s private banks, particularly those that started in the mid-1990s and later, after the Reserve Bank of India (RBI) opened up the sector, have never had it so good. Many public sector banks (PSBs), struggling with bad loans, have started ceding market share both in deposits as well as credit to rivals in the private sector. A few large foreign banks too have halted loan expansion in the past couple of years for fear of piling up bad assets.
Dear Dr Patel, Being an insider, you don’t need time to settle down into your new role. Also, there probably couldn’t have been a better time to be at the helm of India’s central bank, with inflation coming down (data for August, to be released on Monday, will testify to that), a stable and appreciating currency with healthy foreign fund flows and close to $367 billion in foreign exchange reserves. Your immediate predecessor Raghuram Rajan took over in the thick of the taper tantrum when the rupee was depreciating every day and inflation was in double digits; D.
In August 2013, at the 10th Nani A. Palkhivala Memorial Lecture on ‘Five Years of Leading the Reserve Bank—Looking Ahead by Looking Back’, a few days before he stepped down as the Reserve Bank of India (RBI) governor, Raghuram Rajan’s predecessor D. Subbarao dwelt on the issue of autonomy and accountability of the Indian central bank.