Stock Market

Move over Swamy, top bankers back second term for Rajan

Rajya Sabha MP and BJP “rabble rouser” Subramanian Swamy wrote to Prime Minister Narendra Modi on Monday seeking the resignation of Reserve Bank of India Governor Raghuram.

In the letter, he blamed the Governor for the slowdown of the economy, and said he was not fit to continue as central bank chief as he was mentally “not fully Indian”.

But while Swamy may have stepped up his campaign against Rajan, top bankers, economists and bond dealers have thrown their weight behind the RBI Governor.

In a poll conducted by CNBC-TV18 among the top bankers of the country, 100 percent believe that Rajan should get a second term as RBI Governor. 

There was also unanimity among bankers when it came to rating Rajan’s role in stabilising the rupee. Each of the poll respondents felt the RBI chief had done an “excellent” job.

Below are the responses to each of the questions the CNBC-TV18 poll had put to the bankers.

Should Rajan get a second term?
Yes: 100%
No: Nil

How would you rate Rajan as monetary policy maker?
Good: 60%
Excellent: 40%

How would you rate Rajan’s role in stabilising the rupee?
Excellent: 100%

What would be the market’s reaction if Rajan’s stint was terminated?
Adverse: 70%
Neutral: 30%

Swamy is also finding no support from the government. Yesterday, Finance Minister Arun Jaitley said the government shares a mutual relationship with the RBI and added that the “media should not give much credence” to statements being made about it.