The second biggest state-run bank, Bank of Baroda , is up about 12% during that period. Bankers and government officials told Reuters Rajan’s successor may be less aggressive in fighting bad loans, but the general direction will remain the same. An unprecedented asset quality review of banks ordered by the central bank led to reported bad loans surging more than 70% in the six months to March. A senior policymaker who works closely with Rajan said the bank clean up exercise had been “institutionalised” and was on auto-mode, playing down any impact from Rajan’s exit. “He (Rajan) expedited things, but it was on the RBI’s agenda,” the official said, adding the clean-up was long overdue.

Source: Mint June 19, 2016 12:00 UTC