August 20, 2016 8:31:22 pm
Urjit Patel as next RBI Governor will bring “great continuity” at the central bank, his fellow Deputy Governor S S Mundra said, describing him as “a man of clear opinion who may bring some changes”.
“We all are very happy. Being a colleague, he brings great continuity and familiarity. He has a clear understanding of what is going on,” the Deputy Governor said.
Mundra further said his colleague Patel has been continuously involved with RBI and has a clear opinion on all issues.
“Every new leader will bring his or her own thinking. There could be some addition, (in) some processes little bit changes. It’s normal in transition. We are looking for great continuity and that provides great comfort,” he said.
Patel was today appointed the next Governor after Raghuram Rajan demits office on September 4. He was first appointed Deputy Governor for three years in January 2013 and was given extension this January.
Welcoming the appointment, SBI Chairman Arundhati Bhattacharya said: “Patel has been at the helm of institutionalising the inflation targeting regime in the monetary policy framework. His appointment signals continuity of policy intent, both on part of RBI and the government.”
Bhattacharya was one among the seven names speculated to succeed Rajan as the 24th Governor.
Former RBI deputy governor K C Chakrabarty stressed on the need for continuity in the central bank’s policies. Recently, Rajan said there are several unfinished tasks.
“It’s the best that has happened. He is competent and he will be able to deliver,” Chakrabarty said, adding that Patel having worked in the system understands the environment, circumstances and policy measures “much better”.
In his comments on the appointment, former advisor to erstwhile Planning Commission Pronab Sen said “this is indicative of continuity. International investors will like that”.
NRI billionaire and Vedanta chief Anil Agarwal expressed hope that the new Governor would continue the policy of the incumbent Rajan.
Listing out challenges before the new Governor, Biocon CMD Kiran Mazumdar Shaw said RBI will have to deal with external factors like currency volatility, Brexit and the forthcoming US elections.
Hailing the appointment, Vallabh Bhanshali of Enam Securities Patel is a “perfectly understandable choice”.
Sajjid Chinoy of JPMorgan expressed hope that there would be no “knee-jerk” change in policy while former CFO of technology firm Infosys Mohandas Pai termed it as a “great decision” on part of the government to go for Urjit Patel.
MD and CEO of Yes Bank Rana Kapoor saw Patel as an “outstanding choice”.
According to Director and Chief Investment Officer of Max Life Insurance Mihir Vohra, the new Governor needs to reinforce and continue the faith that the external world and Indian markets have in independence and objectivity of the central bank.
“He should continue to work with the government on reducing long-term inflation expectations and maintain stability in the currency,” he suggested.
Sunil Godhwani, whole-time Director and CEO, Religare Enterprises, expressed hope that Patel will continue the good work of balancing inflation while encouraging economic growth.
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