 "Challa Sreenivasulu Setty")
The increase in credit risk weight has helped with the slowdown in retail unsecured credit, he emphasized. “We believe that our CASA ratio will be protected at this level,” Setty said.
State Bank of India Chairman C S Setty on Wednesday stressed that the corporate bond market needs to be strengthened even as he assured that the banking industry’s exposure to small loans remains manageable, primarily due to the active participation of NBFCs and MFIs.
Speaking on the sidelines of Bengal Chambers of Commerce and Industry’s annual financial market conclave here, Setty also addressed concerns about the slowdown in unsecured loans and the importance of maintaining a healthy CASA (current and savings account) ratio.
“One of the major points in corporate lending is that it was mainly done by banks. Corporate bond market still has to get strengthened,” Setty said.
“I think these financial services players were also significant players in mobilizing the household deposits, and have to come to the market,” he said.
Setty said that the banking industry is not into small value loans as such loans are given by NBFCs and MFs and added that there is some slowdown due to the increase in credit risk weight.
But I think the rise in unsecured small loans is “not that alarming,” he added.
The increase in credit risk weight has helped with the slowdown in retail unsecured credit, he emphasized. “We believe that our CASA ratio will be protected at this level,” Setty said.
He also said that the SBI’s dream run was not off and it is expected to continue.
Stating that deposits have to come up front, the SBI chief said that the other institutions need to come to the market for financing to push deposit growth.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 18 2024 | 9:51 PM IST
