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Dinesh Khara, Chairman of State Bank of India (SBI), projects a 14–15% loan growth in the upcoming fiscal year, surpassing India’s GDP growth. Khara links the bank’s growth to India’s GDP, stating that with a projected nominal GDP growth of 7.5% and 5.5% inflation, achieving 14–15% growth is feasible.
Emphasis on Quality:
Khara underscores the importance of maintaining the quality of growth, highlighting the need for competitive pricing and raising deposits at a reasonable cost. Khara expresses confidence in India’s growth prospects, citing the country’s efforts to address supply-side issues, favorable inflation trajectory, and initiatives in infrastructure development. Khara praises India’s management of the COVID-19 pandemic, noting the moderation in liquidity compared to global counterparts.
New Growth Avenues:
Khara identifies renewable energy, EV batteries, and solar energy as emerging growth areas alongside traditional segments, contributing to a positive macro environment. Khara observes a reduction in unutilized loans and an increase in loan drawn down by Indian companies, indicating a shift from commitment to utilization. However, he notes a decreased reliance on bank borrowings among the private sector.
Response to Contradictory Reports:
Khara responds to conflicting reports on growth, suggesting that closer observation yields a more positive outlook compared to distant assessments, emphasizing the favorable conditions perceived within SBI.
