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SC striking down RBI’s Feb 12 circular will not have any impact on credit culture: Rajnish Kumar

State Bank of India chief Rajnish Kumar, in an interview with CNBC-TV18, said that the Supreme Court’s move to strike down RBI’s February 12 circular will not change credit culture.
“Our (SBI’s) approach to the resolution of stressed assets, which is a proactive approach - recognise early the asset and take corrective action… there will be no change in that and the discipline which has come in market around payment - I don’t think that is going to be diluted in any manner,” he said.
“One, banks have already put a resolution framework under bank led resolution approach where that system has already started functioning. Second is Supreme Court has upheld the constitutional validity of Insolvency and Bankruptcy Code (IBC) in their previous judgements,” he added.