SBI is a Proxy to the Indian Economy: Dinesh Khara

SBI is a proxy to the Indian economy

After the second wave has slowed down after the last week of June things have been looking up for the Indian economy, as the unlock has started to happen. But from the start of April to mid-June, things were pretty bad but since the 16th people have been gaining confidence to come out and work and improve the economic status of India. SBI is a Proxy to the Indian Economy: Dinesh Khara

The economic activity has gone back to the way it was in March 2021 (end of the first wave) in certain areas but in a few other areas like in the commodity sector, they are slowly inching towards it.

With the vaccination numbers going up daily, the hopes are also going up for everything to return to normalcy.

During the first wave, SBI was much like the other financial institutions were hit with a blow of uncertainty, they didn’t know what to do.

But unlike the first wave, the bank was prepared for the second wave and even though it was much more intense than the first one, the availability of the vaccine was a happy assurance with which people could fight the virus and also made sure to not show their covid fatigue since due to that people got complacent and gave no regards to the precautions and restrictions.

According to the chairman of SBI, inflation is when there is an imbalance created in the supply chain demand. With the unlock happening soon, the supply chain demand will desperately try to catch up with the demand.

It had disruptions in its businesses as there was no cash flow to the SMEs until RBI announced the relief for it. With the RBI announcing the relief, SMEs got exposure, and people could ease up when they fell into the eligibility criterion for the relief.

The bank has always grown 1% or 1.5% higher than the RBI’s projected credit growth, what it expects the GDP to be. If the expected growth is 8% then SBI will have 9% as the credit growth and will register just that much on their loan groups to achieve that.

The retail end of the business has taken a hit i.e. slowed down due to the hit of the second wave. The retail end of the business was higher in the last quarter unlike what it is seeing now.

But The bank hopes with a return of things to normalcy and jobs being reopened there will probably be a shortfall that would make up for it as it did in the previous financial year.

SBI does not see the lack of activity in the retail end of business as a challenge, as out of the 90 days people weren’t allowed to move for 60 days. But when the mobility finally returned, SBI made caught up with all its dues. The chairman believes that SBi can catch up as long as there is mobility for the people to go to the banks and ask for their products.

According to the chairman of SBI Dinesh Khara, it has always been the proxy for the Indian economy. HE says that that the Indian economy’s decline could be seen but with this bank, they tend to keep it up and don’t let it fall below what could then be impossible to pick up from.

With regards to the MF going public this financial year, he says is quite unlikely as they and their French partners have unanimously decided that now wouldn’t be the right time to announce to the public about its availability.

As long as the entity has a name attached to it, they would be making long-term returns on it. So the chairman isn’t concerned about making the IPO i.e. YONO public yet.

He says that due to his team’s values and urge for excellence the bank had managed to keep its backbone straight and solid in the technological area.

For SBI to buy the credit card acquisitions, the pricing should be ideal in a way that it doesn’t affect them in any way. If they do have to buy it, the pricing will play a major role.

The chairman is quite welcoming towards the fintech companies who are working in a very specific niche. He says that big corporate banks such as theirs should be open to collaborating with them and welcome their ideas and plans.

It has a market share of about 23% and the loan books stay always stays above the 20% mark. So he feels like there is nothing to worry about there. He adds that even though they are very well placed in the market, he wants the bank to scale up using the technology, analytics, and collaborating with the fintech.


I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.

Latest News