SBI says busy season fails to lift credit off-take

Tags: News
State Bank of India (SBI) is witnessing a "subdued" credit growth in spite of the ongoing busy season, a senior official said today.

"Our credit growth is a bit subdued in spite of the traditional busy season," a senior official of the country's largest lender said here, wishing not to be named.

The official, however, said weak credit growth is not because of the high interest rates, but because of the slow pace of growth which is hurting appetite for credit.

It can be noted that the economy grew 4.8 per cent in the second quarter, up from 4.4 per cent in the preceding quarter, but still lower than the government target of 5 per cent.

After the release of the second quarter data, many analysts are wondering if the government will be able to achieve the 5 per cent mark this fiscal.

When asked if the demand has started coming from the string of projects cleared by the Cabinet Committee on Investments, the official said those projects will require over three months to begin to flow.

The official added the resilient retail segment, where growth has been outpacing corporates, is continuing to witness good growth even in this period.

On reports of the RBI pulling up banks for not transmitting the twin rate hikes, the SBI official said it was not fair to say RBI has some grave reservations on the issue, which got discussed at the customary post policy interaction between RBI and bank chiefs last week.

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