Insta
The Banking System Will Bounce Back End-February Or March: SBI Chief
Swarajya Staff
Jan 02, 2017, 06:57 PM | Updated 06:57 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The banking system will be back on its feet by end-February or March, State Bank of India (SBI) chief said on Monday.
Chairperson Arundhati Bhattacharya said normalcy will return with the credit growth, thanks to demonetisation, put to good use.
The chairperson said banks, indeed, have huge low-cost funds driven by deposits following the demonetisation drive. This, she felt, will flow out. "But we expect 40 per cent of that to stay with the bank," she added.
"At that time, we will have a relook at the deposit rates."
Her statement comes close on the heels of a 0.9 percentage point cut in lending rates.
Referring to the rate cut announced, Bhattacharya earlier said: "This is a liquidity-driven rate cut. The liquidity in the system in unprecedented, in terms of the fact that what we did in the first nine months of the year, we have done one-and-half times that in 30 days."
Though the excess liquidity was marked by a lower credit growth, she said, “we are open for business”.
“There is demand in the economy and there should not be any uncertainty on this."
With Inputs from IANS
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.