SBI chief hails Modinomics

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Kolkata: State Bank of India (SBI) chairperson Arundhati Bhattacharya has complimented the Narendra Modi government for kick-starting a series of measures with huge allocations of fund for the all-round development of the sagging national economy, including the Banking sector. The recent decision of the Modi government to start a number of mega projects in infrastructural sectors like building of roads and introduction of bullet trains from Ahmedabad to Mumbai at cost of over Rs 1 lakh crore would certainly boost the national economy to a great extent, the chairman of the country’s largest public sector bank said.

The SBI chief concluded her visit to the city last weekend. Regarding the steps to bring the banking sector back on track, particularly in terms of reducing the huge burden of NPA and improving the sagging credit outflow, Bhattacharya said following the launching of a large number of mega projects in various industries including those in power and ports by the Modi government in different parts of the country including in eastern India, the banking sector would be one of the major beneficiaries as such projects required lot of funds which could be provided only by the banks. This would, in turn, generate huge demand for credits among the industrial players to help bridge the current huge gap between the credit-deposit ratio, she said.

Bhattacharya hopes that the credit growth in most of the public sector banks would cross the double-digit figure within the next few months. Simultaneously, she believes, the NPA rate should also come down to an acceptable level of around 1.5% to 2% by March next.

Welcoming the prospect of bullet trains in India on Japanese model in spite of costing trillions of dollars, the SBI chief said that this would go a long way not only towards improving the transport sector to a great extent, but also help boost several other sectors like iron and steel.

The petroleum and power sectors are also growing very fast generating lots of employment both in organised and unorganised sectors, Bhattacharya observed. She hoped that the SBI would play a major role in the projected upswing of the national economy.Regarding the possibility of

Regarding the possibility of a further cut in bank interest rates, Bhattacharya refused to make any comment at the present juncture.

Hindusthan Samachar/Ankur Bhattacharya

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