Indian economy poised for recovery in FY22, says SBI chairman
Though the second wave of the Covid-19 pandemic brought businesses and economic activity to a halt again, State Bank of India (SBI) Chairman Dinesh Kumar Khara has expressed hope that the country’s economy will recover in the current financial year. The Chairman noted that the global economy contracted by 3.3 percent in 2020 with the pandemic causing significant loss of lives and livelihoods.
Addressing the bank’s 66th Annual General Meeting, he said that GDP in India declined by 7.3 per cent in FY21 and the country experienced a second wave of infections and cases are increasing rapidly since March 2021.
However, he added that policy measures and coordinated efforts of the Reserve Bank of India (RBI) and the Center were directed towards enabling growth on a more sustainable basis during these difficult times.
“Despite the second wave of Covid-19, the Indian economy, through its resilience, is poised for a recovery in FY 2022,” the SBI chief told the bank’s shareholders.
Speaking on the bank’s performance in FY21, he said that though the previous financial year was an exceptionally challenging year for the entire world, the state-run bank was able to operate against all odds with minimal disruption to the customers.
“The business continuity plans that were chalked out have worked well for the bank and this is reflected in various parameters of the bank’s performance in FY21.”
Notably, the bank has achieved a high level of digitization with the share of alternative channels increasing by 93 per cent in total transactions in FY21, turning a challenging situation into an opportunity, the Chairman said. .
He said that in the current financial year, SBI will continue to accelerate its digital agenda, while further expanding the scope and reach of YONO.
“With the rollout of pre-packaged insolvency for resolution, restarting of courts and formation of National Asset Reconstruction Company, efforts to maintain momentum in stressed asset recovery will be fully implemented in the current financial year.”
The bank has been put at ease in terms of growth capital. Lending opportunities in promising sectors will be explored to diversify the portfolio and control risk.
“In conclusion, the Bank has adjusted for the challenges posed by the COVID-19 pandemic and is in a better position to deal with any subsequent wave. I am cautiously optimistic that the FY2021 performance trajectory will continue into FY2022 as well. “
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