SBI Alone Can Fund More Than Rs 1 Lakh Crore in 1 Month, Says Chairman Rajnish Kumar Amid Reports of 'Liquidity Crisis'

New Delhi, August 30: Amid reports of Indian economic slowdown in the country and Union government taking steps to boost it, State Bank of India Chairman Rajnish Kumar said his bank has at least Rs 1 (one) lakh crore to lend for investments. India's biggest public sector bank chief stated this fact while responding to questions on whether banks' reluctance to give was contributing to the slowdown. SBI Chairman Rajnish Kumar Says 'Announcements Made by FM Nirmala Sitharaman Are Major Enablers to Support Economic Growth'

Earlier last week, Kumar had said that the announcements made by Union Finance Minister Nirmala Sitharaman would act as significant enablers for continuing to support growth. He also applauded the Finance Minister for the rollback of a controversial tax surcharge on foreign portfolio investors (FPIs) and equities of domestic investors announced in the Budget last month.

Asked about NITI Aayog officer's comments, the SBI Chairman stated that his bank did not have a liquidity crunch. He said, as NDTV quotes, "That is what you have to ask the NITI Aayog. If you ask me that as the State Bank, what is the liquidity position, State Bank of India alone today can fund more than Rs. 1 lakh crore in one month. That is the kind of liquidity I'm sitting on. The entire banking system is flush with cash. Now the lending is also happening."

However, Kumar said that the Banks are more careful now. He said, "There has been some change in the approach... We are careful, absolutely. Because it cannot be business as usual. We are careful upon the appraisals, vis-a-vis the requirements, visibility of equity whether promoter is in a position to bring in equity." Adding on, he stated that the companies are trying to reduce debt, which is not a bad thing. Nirmala Sitharaman's Remedy For Ailing Auto Sector & Real Estate: Cheaper Loans, Easy EMIs.

Last Friday, Sitharaman announced that the Union Government had announced an upfront release of Rs 70,000 crore and additional lending and liquidity to the tune of Rs 5 (five) lakh crore by providing upfront Capital to PSBs. Also, she had announced rate cuts by banks through MCLR reduction to benefit all borrowers.

(The above story first appeared on LatestLY on Aug 30, 2019 03:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).