India's largest bank is asking for a government stimulus to save the upcoming festive season

State Bank of India (SBI) chairman Rajnish Kumar addreses a press conference in Kolkata on Aug 18, 2019. (Photo: Kuntal Chakrabarty/IANS)
  • From automobiles to housing to daily consumer products, the slowdown in Indian economy is becoming increasingly evident.
  • Banks in India have enough money but the demand for loans is tepid.
  • Rajnish Kumar, the Chairman of the government-owned State Bank of India, contends that only a government stimulus can ensure robust demand during the upcoming festive season.
Amid the economy roiling through a slowdown in demand and consumption, State Bank of India (SBI) Chairman Rajnish Kumar on Sunday raised the pitch for a stimulus, saying that the credit demand remains subdued.

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

"Demand for credit in the economy is subdued. There is a need for stimulus in the economy," Rajnish Kumar told media here.

The SBI chief was in the city to attend the multi-level consultation programme with SBI branch managers 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 while expressing hope that the monsoon will have a positive impact.

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

Intensifying the efforts to find ways out of pressing issues of tax surcharge on the super rich, the slowdown in the auto and housing sector, the Finance Ministry and the Prime Minister's Office (PMO) are constantly holding meetings to come out with solutions to tackle the near-stagnant economy. They are discussing options and solutions on tackling the slowdown in the auto, realty sectors and and also on the equity market, being battered by FPIs.

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