homefinance NewsDisruptions shouldn't persist; expect loan growth in double digits: SBI Chairman

Disruptions shouldn't persist; expect loan growth in double digits: SBI Chairman

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By Latha Venkatesh  Mar 17, 2022 12:42:43 PM IST (Published)

Speaking to CNBC-TV18, Dinesh Kumar Khara, the chairman of India's largest bank, State Bank of India (SBI) said that these disruptions in the broader economy may have some impact on cost structure but they shouldn't persist for long. 

The global economy is spooked because of the Russia-Ukraine war and the spike in COVID-19 cases again in China. These external factors have kept the markets on the tenterhooks and then there are rate hikes from the US Fed and upcoming ones from RBI to factor in.

Speaking to CNBC-TV18, Dinesh Kumar Khara, the chairman of India's largest bank, State Bank of India (SBI) said that these disruptions in the broader economy may have some impact on cost structure but they shouldn't persist for long.
"As far as the term loans for expanding the capacity is concerned, normally, these kind of instances which are not durable in nature, will not have a significant impact on the decisioning, which happens at the corporate level. Normally, corporate tried to will as the demand scenario for the foreseeable future and I expect and hope that this disruption will not persist for long," he said.
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Khara reasons that growth is a major focus for the economy and that should help tide over the current choppy waters.
"I expect that by FY22-FY23, somewhere we should be kissing the two-digit growth as far as the loan book is concerned," he said.
What should one expect in terms of rate hikes? Khara doesn't expect rates to rise as much if growth has to be encouraged.
For the full interview, watch the accompanying video
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