Millennium Post

SBI reads early signs of credit revival

State Bank of India on Tuesday said it is witnessing early signs of revival in credit growth as mid-corporates have started seeking fresh funds.

‘There are early signs of credit uptake. Mid-size corporates are coming for fresh lending...,’ SBI managing director and group executive for national banking A Krishna Kumar said.

He, however, said it is too early to predict a full-fledged credit recovery based on these early figures.

Referring to retail credit, which has not been badly impacted in the first half, Kumar said the number of applications have nearly doubled in the home and auto loan segments after the recent reduction in interest rates in these segments.

Credit growth has been flat in the second quarter at 0.1 per cent to 16.4 per cent, according to RBI data for the period.

Kumar, however, added that there is less space for further reduction in interest rates in these segments as the spreads are already lowered in the retail segments.   
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