Credit demand subdued, economy needs stimulus

zee news

State Bank of India (SBI) Chairman Rajnish Kumar on Sunday said credit demand remains subdued and there is a need for stimulus in the economy.

Kumar told to reporters that “Though lack of credit demand exists in the economy, there is no supply-side constraint as the public sector banks are more or less well-capitalized. Demand for credit in the economy is subdued. There is a need for stimulus in the economy.”

“There is no supply-side constraint. More or less, the public sector banks are well capitalized and bank rates also moderated. Increased spending by the government and the upcoming festival season would boost demand,” Kumar added.

Kumar hoped that monsoon will have a positive impact.

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