The RBI’s ban has dealt a body blow to India’s fourth largest private sector lender. The implications go beyond just the numbers.
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The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
The microfinance institution faces a possible recall of nearly Rs 6,000 crore in loans given by banks, which it will be hard-pressed to repay given the state of its assets.
The central bank, under Das, has gone from reactive to proactive regulation. With signs of stress resurfacing in the banking system, the need for a taskmaster like him at the helm is stronger than ever.