NEW DELHI: Raghuram Rajan, the rockstar governor of the Reserve Bank of India (RBI), has hung up his boots, with deputy governor Urjit Patel taking over charge from him.
Data shows even though banks have not transmitted the rate cuts fully and the former governor remained hawkish throughout his tenure, Dalal Street enjoyed his presence a bit with the Sensex giving 54 per cent returns since September 4, 2013, the day of his appointment as RBI chief.
This translates into a 15.4 per cent compounded annual growth rate (CAGR) for the index during the period.
This was better than the returns that the index had delivered during the tenure of Bimal Jalan, D Subbarao and even C Rangarajan, but could not stand against those generated during the tenures of S Venkitaramanan and Dr YV Reddy.
“We have to acknowledge the contribution that Rajan has made to this country. I think the NPA problem would not have come down for how many years. I personally agree with his stand on monetary policy because mere interest rate reduction is not going to lead to anything unless it is transmitted. His legacy is going to remain and we must thank him for the good work he has done,” ace investor Rakesh Jhunjhunwala said last week.
The best ever show by the index was during the tenure of Dr YV Reddy between 2003 and 2008, when it rose a whopping 231.5 per cent.
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