MUMBAI: SBI chairman C S Setty said that corporates drawing from the Rs 4-lakh-crore sanctioned credit pipeline at the bank point to a strong growth in private capital expenditure. Setty mentioned that although credit growth is surpassing that of deposits, the high base of deposits indicates that there is enough available for credit.
“Last quarter, we almost had 15-16% of corporate credit growth.But more than that, what we need to understand is that brownfield expansion is being met by corporates’ own cash which, if they consume once, will draw from sanctioned lines. If the credit draws under sanctioned lines are an indication of capex, it is a robust indication,” Setty said.
Setty was speaking at a fireside chat at the Global Fintech Fest here. He said that the bank was not under pressure to reduce its credit-deposit ratio, which is currently comfortable.