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Credit Demand Subdued, Economy Needs Stimulus, Says SBI Chairman

State Bank of India (SBI) Chairman Rajnish Kumar. (Image: Reuters)

State Bank of India (SBI) Chairman Rajnish Kumar. (Image: Reuters)

Hoping that monsoon will have a positive impact, the SBI chairman said increased spending by the government and the upcoming festival season would boost demand.

Kolkata: State Bank of India (SBI) Chairman Rajnish Kumar on Sunday said credit demand remains subdued and there is a need for stimulus in the economy.

Though lack of credit demand exists in the economy, there is no supply-side constraint as the public sector banks are more or less well-capitalised, he said.

"Demand for credit in the economy is subdued. There is a need for stimulus in the economy", Kumar told reporters here. He was in the city to attend the multi-level consultation programme with the branch managers of SBI in the region.

"There is no supply-side constraint. More or less, the public sector banks are well capitalised and bank rates also moderated," he said.

Kumar hoped that monsoon will have a positive impact.

Increased spending by the government and the upcoming festival season would boost demand, Kumar added.

first published:August 18, 2019, 17:56 IST