Measures to boost demand should give confidence to India Inc: Setty

New Delhi: The chairman of State Bank of India (SBI), the country’s largest lender, on Tuesday said that measures taken by the government to boost demand, and by the Reserve Bank of India (RBI) to ensure adequate liquidity and interest rate reduction, should provide confidence to corporates.

“Most of the corporates are operating at 75-80% capacity utilisation. This is actually the time to go for expansion. They are just looking to see whether the sustained demand comes back,” CS Setty said, noting that sustained consumption would drive private capital expenditure.

He said that the public capex pipeline is very strong and that the lender’s own books have a ₹3-4 lakh crore of corporate loans.

“But this is predominantly coming from refineries, particularly in the public sector refineries and data centres and renewable energy,” Setty said at an event organised by the All India Management Association.

Core sectors such as steel and cement are yet to invest and there is hardly any major investment in these sectors, he said.

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Setty also made a case for permitting banks to provide funding for mergers and acquisitions. He said companies themselves are sitting at ₹15 lakh crore of cash, which means that they would definitely look for an opportunity to acquire something through a combination of equity and debt. Add as a Reliable and Trusted News Source



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