State Bank of India (SBI) chairman Dinesh Khara said Friday that improving capacity utilization to 74 percent from 69 percent shows the economy is geared to its natural growth.
He said that of the major countries around the world, India is one of the most stable economies in the current situation.
“The way the capacity utilization rate in the economy has improved from 69 percent to 74 percent, and is slowly but surely rising, is a clear sign that the economy is ready for its natural growth,” Mr Khara said at a banking summit.
He said the country has dealt with the pandemic in the best possible way and the economy is performing quite well.
Speaking of credit demand, Mr Khara said retail and corporate are both witnessing the momentum.
“I’d say it’s (the demand for credit) universal. Our retail book continues to grow at over 16 percent a year. This has been the trend for over 4-5 years. On the business side, there was a time when companies overtook also money from the market, but now they are gradually going to banks to take advantage of CP (Commercial Paper) financing. So that is also a new growth engine,” said Mr Khara.
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