Fri. Mar 29th, 2024
picture credits- financial express

Dinesh Kumar Khara, the Chairman of State Bank of India (SBI) stated that the Indian economy would recover in the current financial year i.e. FY 2021-22. Mr. Dinesh Kumar Khara’s statement comes at a time when the nation is recuperating from the second wave of COVID-19 pandemic which had wreaked havoc  on the economy and had brought the economic activities in the country to a standstill.

Mr. Khara was addressing the 66th Annual General Meeting (AGM) of SBI. At the AGM, Khara maintained that the pandemic has caused immense loss of livelihood and lives.

According to reports, India’s GDP had contracted by a significant 7.3 per cent in FY21. Subsequently, the nation had witnessed a second wave of COVID-19 pandemic when cases had risen exponentially during March-May period leading to imposition of partial lockdowns in states.

Talking about the fiscal and the monetary measures taken by the central government and the RBI, Khara noted that during these difficult times, the policy measures and efforts of the Central government and RBI were aimed at enabling growth on a sustainable basis.  He stated that “Notwithstanding the second wave of COVID-19, Indian economy, through its resilience, is poised for a recovery in FY2022,”.

Talking about the performance of SBI during the previous fiscal, Khara maintained that despite challenges, the bank was able to function quite smoothly with minimal disruptions for its customers.

Khara stated that “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 FY 2021,”.

He additionally stated that “Notably, the bank has achieved high level of digitization, with share of alternate channels in total transactions increasing to 93 per cent in FY2021, thereby converting a challenging situation into an opportunity,”.

Talking about SBI’s ambitious digital banking system scheme, Khara maintained that the bank will continue to work towards its digital goals in FY22. The bank also expects to expand the reach and scope of YONO, SBI’s digital banking platform.

The SBI chairman stated that “With the rollout of pre-package insolvency for resolution, resumption of courts and formation of National Asset Reconstruction Company, efforts will be in full force to keep the momentum in stressed asset recovery in the current financial year,”.

Talking about the capital growth of the bank, khara stated that SBI is in a comfortable position in terms of growth capital and maintained that the bank will explore opportunities for lending in promising sectors in order to diversify its portfolio.

Talking about the preparedness of the bank to adjust to the covid challenge in the future, Khara noted that “In conclusion, the bank adjusted to the challenges posed by the COVID-19 pandemic and is better positioned to tackle any subsequent wave. I am cautiously optimistic that the performance trajectory of FY2021 will continue in FY2022 as well,”.

By Shivani Khanna

A woman who believes in equal rights and aspires to inspire people through her writings. I aspire to contribute to the economic world and society with diligence and thus being an economic advisor tops my career ambitions . I currently am pursuing Economic honours ( at undergrad level) from delhi university.

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