Mumbai: State Bank of India chairman Dinesh Khara Friday said the improvement in capacity utilisation to 74 per cent from 69 per cent shows that the economy is geared for its natural growth.
He said among the large nations across the globe, India is one of the most stable economies in the current situation.
“The way the capacity utilisation in the economy has improved from 69 per cent to 74 per cent, and is inching upwards, it is a clear sign that the economy is poised for its natural growth,” Khara said at a banking event organised at the Financial Express newspaper.
He said the country has handled the pandemic in the best possible manner and the economy is performing pretty well.
Talking about the credit demand, Khara said retail and corporate sectors are both witnessing the momentum.
“I would say it (credit demand) is universal. Our retail book continues to grow at more than 16 per cent per annum. This has been the trend for more than 4-5 years.
“On the corporate side, there was a time when corporates were raising money from the market also but now gradually they are moving towards banks for availing CP (Commercial Paper) funding. So that also is a new engine of growth,” Khara said.
Speaking at the event, Standard Chartered CEO Zarin Daruwala said over the last four-five months, there has been an increase in demand for working capital loans owing to a surge in commodity prices.
There is demand for loans from the MSME segment after the government launched the Emergency Credit Line Guarantee Scheme (ECLGS), she said.
PTI