Rajnish Kumar, Chairman, State Bank of India was the guest at ThePrint’s digital ‘Off the Cuff’.
Kumar said a lifting of the lockdown could see a resumption in economic activity and this could translate into demand for bank credit. With both banks and borrowers preferring prudence, banks have been flush with liquidity, he said, pointing out that SBI does not really need fixed deposits at present.
Kumar, who is also the chairman of the Indian Banks’ Association, warned that indiscriminate credit growth like that seen post 2008 could lead to a fresh wave of non-performing assets or NPA.
Kumar admitted that SBI’s investment in Yes Bank was not purely a commercial decision and pointed out that it was a decision made to preserve financial stability.
He also said there is no hope for finding any buyers for Jet Airways.
Kumar added that only 15-20 percent of SBI’s customers had opted for the 3-month loan moratorium.