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economy | IST

Everybody believes in India's growth story: Former SBI Chief

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Everybody believes in India story, the demographics are right, the growth story is right and when both growth story and demographics are right then the financial system in the country is bound to play a very critical role, he said.

Next to the finance minister and the RBI governor, the SBI chairman is probably one of most powerful personalities in the financial policymaking space. So a tell-all book, by former SBI chairman Rajnish Kumar, is bound to be interesting. The book named "Custodian of Trust - A Banker's Memoir" has hit the book shops and has a bunch of all that happened behind the scenes in interesting events like the rescue of Yes Bank, the failed rescue of Jet Airways, demonetisation glitches and much more.
In an interview with Latha Venkatesh, Former Chairman of SBI Rajnish Kumar said Yes Bank is a very fine example of how a bank can be rescued but there needs to be a proper resolution framework in place for resolving the issues.
"Yes Bank is a very fine example of how a bank can be rescued. There was a public-private partnership model which was adopted. Not only SBI but many private sector banks came forward. However, this is not an ideal solution where RBI is running around to rescue the bank. So there is a need that we have a proper resolution framework in place for resolving the issues. We cannot avoid some failures here and there in the financial system despite oversight and tight regulation. So to deal with this situation there is currently no proper law and in different scenarios, RBI has taken different approaches. So I believe that we need a resolution corporation with all the powers and the wherewithal to do the job which SBI was asked to do."
The financial sector and the IT sector continue to attract huge investments. There is value for investors who are investing in these segments, he said.
"Financial sector and the IT sector continues to attract huge investment. Everybody believes in India's story, the demographics are right, the growth story is right and when both growth story and demographics are right then the financial system in the country is bound to play a very critical role and there is value for investors who are investing in this segment."
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