SBI Chairman Foresees Boost in Private Investments for Economic Growth

State Bank of India (SBI) chairman, Dinesh Kumar Khara, predicts a surge in private investments to accelerate India’s economic expansion. Khara, in an interview with ET, highlights the rising capacity utilization levels, historically triggering corporate boards to plan expansions.

SBI, headquartered in Mumbai, celebrated a landmark fiscal year with profits exceeding Rs 50,000 crore and securing the prestigious ET Awards for Corporate Excellence in the Company of the Year category. Khara emphasizes India’s focus on bolstering manufacturing capabilities, foreseeing a positive trend in growth capital expenditure, with banks set to facilitate financing.

Khara attributes the optimistic environment to robust macroeconomic conditions and the resilience exhibited by SBI during the COVID-19 crisis. He applauds the collective effort of SBI staff and the supportive government policies for fostering success.

Khara notes the critical role of private capex, typically initiated when capacity utilization hits around 75%. He cites commitments of Rs 37 lakh crore by private corporates in 2022-23, signaling a promising future. Undisbursed term loan limits indicate a shift towards increased private investments.

To stay proactive, SBI continues to invest in understanding evolving trends and enhancing risk management capabilities. Despite challenges, the bank maintains a strong balance sheet and adapts strategies, such as rupee-dollar swaps, to support domestic growth during fluctuating market conditions.

Overall, Khara’s outlook underscores the potential for private investments to fuel India’s economic growth, with SBI committed to supporting the nation’s developmental journey.