'Promoters don't have divine right to stay on'

New Reserve Bank of India governor Raghuram Rajan has declared war against bad loans on his first day in office, saying wilful defaulters will not be spared and has instructed bankers to be more efficient in recovery of bad loans while adding that he will personally look at ways of expediting the recovery mechanism. The gross bad loans of Indian banks stood at 3.9% in June end, and RBI estimates that this may increase to 4.4% if the macro-economic situation does not improve. Besides, restructured loans rose to 6.1% last fiscal from 2.8% in December 2010. 

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