Banks left with no choice but to park money with RBI: SBI Chairman Rajnish Kumar
"The doomsday scenario on banks with respect to Non-Performing Assets (NPAs) is overstated, but we don't know what will happen after six months," he said.
June 02, 2020 / 08:20 PM IST
Admitting that lending activities have not taken off despite the measures taken by the government and central bank,
State Bank of India Chairman Rajnish Kumar on June 2 said that the impact of recent reforms may not be visible in the near term.
"Banks are left with no choice but to put money in the RBI. Deposits have increased in the last two months but lending has not. The doomsday scenario on banks with respect to Non-Performing Assets (NPAs) is overstated, but we don't know what will happen after six months," he said at a virtual session organised by the Confederation of Indian Industry.
"Individuals and businesses, government and the financial sector need to work together to absorb the impact of the crisis to bring back economic growth. The three vital elements bearing the brunt of the current crisis are Individuals and businesses, governments and the financial sector," said
Kotak Mahindra Bank CEO, Uday Kotak.
Ajay Piramal, Chairman of Piramal Group, said that it is important to strengthen India’s finance sector as it plays a vital role in sustaining economic growth post-COVID-19.
"I was surprised that the financial sector lost 40 percent market cap in the last 12 months. Government needs to ensure that demand is increased in the Indian Economy. Additionally, investment in technology and innovation is also needed," he said.
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