Step up infra investment to spur growth: SBI Chief

The investment in infrastructure needs to be stepped up to spur demand and revive the economy, said State Bank of India (SBI) Chairman Rajnish Kumar at a webinar organised by the All India Management Association.

The data clearly shows that investment in the economy has come down, said the head of the country’s biggest lender. “If the capital expenditure is not happening and investment in the economy is not happening at the same pace, then obviously this is a demand issue,” he said.

In such circumstances, there is a need to create more businesses and entrepreneurs who have the wherewithal to invest in operations and borrow, he observed.

Asserting there is muted demand for loans, Kumar said banks are not risk averse, but are being prudent in these trying times to avoid a repeat of the post 2008 scenario when there was “dilution” in credit underwriting standards.