SBI chairman Rajnish Kumar’s big remark about India’s economic recovery – here’s what he said

By: |
Published: July 10, 2020 8:37 PM

Speaking at the SBI Banking and Economics Conclave, Kumar said there is a need to wait for three to four months to see the trend of the recovery.

indian economy, global economy, coronavirus latest news, covid 19The impact of the COVID-19 pandemic is severe than the 2008 global financial problem, the SBI chief said.

The country’s economy, which witnessed a disruption due to the coronavirus outbreak, has started recovering from June, State Bank of India’s Chairman Rajnish Kumar said on Friday.

Speaking at the SBI Banking and Economics Conclave, Kumar said there is a need to wait for three to four months to see the trend of the recovery.

“COVID-19 has caused gigantic disruption of the Indian economy along with dislocation of the supply chain. April was the worst month. Things had slightly improved in May, while the recovery started from June,” Kumar said at the webinar.

The industrially advanced states such as Maharashtra, Gujarat and Tamil Nadu were the worst affected due to the pandemic, he said.

“The partial lockdown announced intermittently across the country is also dislocating the supply chain,” he added.

Asked whether the Reserve Bank of India (RBI) will extend the moratorium on loan repayments till end of the year, the SBI chief said there is “no need for extending it across the board beyond August 31, 2020”.

“Some sectors have been severely affected. I expect the RBI to take a calibrated approach on the issue,” Kumar said.

He said the banks had been able to absorb the shock due to the moratorium offered to the borrowers in the wake of the COVID-19 outbreak.

He said the SBI data showed that there is a rise in NPAs due to the coronavirus crisis but it can be “manageable”.

People have been cautious about increasing their liabilities by opting for the moratorium, especially in the retail, agriculture and MSME sectors, he said.

“The corporate houses have opted for the moratorium. The intent is to preserve cash. It is not that they were
unable to pay,” Kumar said.

He said the most-affected sectors are aviation, hotel and tourism which need help.

The impact of the COVID-19 pandemic is severe than the 2008 global financial problem, the SBI chief said.

The coronavirus crisis has led to the contraction of the global economy to a large extent, Kumar added.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Two crore families provided with piped drinking water in last one year: PM Modi
2Prime Minister Modi wants self-reliant farmers for Atmanirbhar Bharat; focuses on agri reforms
3PM Modi’s mantra for Atmanirbhar Bharat: Value-Addition to raw material, making finished goods