NEW DELHI: Dinesh Khara, the low-profile chairman of State Bank of India, is gearing up to meet the demand from companies and individuals impacted by Covid as he and his team seek to assess the impact of the second wave. In an interview, he tells TOI that companies have sufficient headroom in terms of unutilised credit facility to meet their requirement. Excerpts:
From an economic standpoint, how is the second wave different from the first?
Compared to the first wave, when GDP decelerated by over 23% in Q1FY21, we expect numbers to be significantly different this time. The other aspect is that lockdowns have happened at different points in time, which has ensured continued economic activity. The supply chain has got disrupted for industries, but some activities like construction have continued. Also, we have not seen the migrations from cities that were there last year, and living with Covid has become a new normal. We do not see much disruption for large corporates. It is largely
Blind optimism on GDP growth
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The projected 10.5% GDP growth for this year seems far-fetched, as the Covid second wave is bound hit the economy hard
The severity, penetration and pervasiveness of the second wave of the Covid pandemic the raises new questions on the optimism of the authorities in India as also of the multilateral institutions like the IMF and ADB on growth revival, particularly the projection of a 10.5 per cent increase in real GDP in 2021-22 over the previous year.
It is easy to see how and why this is not achievable, for certain. A growth of 10.5 per cent means the India’s real GDP must grow from ₹134,08,882 crore (official 2020-21 figure) to ₹148,16, 815 crore, an increase of around ₹14-lakh crore. We have not achieved this in the best of times. To say we will do it now is but blind optimism that hinders rather than helps any analysis that must guide policy in these difficult times.
Bank credit grows 5 33%; deposits rise 10 94% india.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from india.com Daily Mail and Mail on Sunday newspapers.
Bank credit rises 5.33% to Rs 108.89 lakh cr; deposits grow 10.94%
In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were Rs 137.15 lakh crore. In 2020-21 fiscal, bank credit increased 5.56 per cent and deposits 11.4 per cent
PTI | April 26, 2021 | Updated 21:56 IST
The agency said bank credit growth is likely to increase in FY22, given the growth in the economy and the base effect coming into play
Bank credit grew by 5.33 per cent to Rs 108.89 lakh crore, and deposits rose 10.94 per cent to Rs 152.15 lakh crore in the fortnight ended April 9, 2021. In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were Rs 137.15 lakh crore.