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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture