SBI

Sbi President has a figure of Rs 8 Lakh to Show All Good with Indian Economy | Rare Techy

Rare TechyOctober 27, 2022

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Official figures from the Reserve Bank of India show that credit growth for banks has reached a 10-year high of 17.9 percent. Separately, excess liquidity in the interbank market also fell to a two-year low. This bodes well for India’s economic growth prospects and in an interview with CNBC-TV18, State Bank of India Governor Dinesh Khara said he believes the Indian government will spend more in the second half of the fiscal year (H2FY23). because of this.

Credit growth is a reflection of the economy doing well and SBI has seen an increase in deposits to Rs 8 lakh crore this fiscal from Rs 6-billion earlier. Other banks that have reported earnings have shown similar increases.

“I believe there is some unspent money from the government, and the kind of change that has been seen in the GST collections gives us some confidence that maybe in the rest of the current year, we will see some things. money spent by the government, which will bring more liquidity in the system,” said Khara.

The primary driving force for the high credit growth seen by banks is strong domestic demand and the SBI boss is particularly focused on the consumer segment.

“The last two years, due to COVID, consumer demand has not been as strong. So, domestic demand is great and in addition to this consumer segment; auto sales have rebounded, real estate sales are increasing even though which are housing loans. On top of that, they are facing returns with solid hospitality services,” said Khara.

The banker also feels that the Indian economy should benefit from the credit available at cheap rates.

“In terms of unsecured credit, even though it may seem like an unsecured loan on the face of it, the fact remains that there is more trust involved. If I may go by my own experience, I would say that unsecured credit is much better than secured credit. is,” he said.