Credit demand subdued, economy needs stimulus: SBI Chairman

NEW DELHI :State Bank of India (SBI) Chairman Rajnish Kumar on Sunday said credit demand remains subdued and there is a need for stimulus in the economy.nnThough lack of credit demand exists in the economy, there is no supply-side constraint as the public sector banks are more or less well-capitalised, he said.nn”Demand for credit in the economy is subdued. There is a need for stimulus in the economy”, Kumar told reporters here.nnHe was in the city to attend the multi-level consultation programme with the branch managers of SBI in the region.nn”There is no supply-side constraint. More or less, the public sector banks are well capitalised and bank rates also moderated,” he said.nnKumar hoped that monsoon will have a positive impact.nnIncreased spending by the government and the upcoming festival season would boost demand, Kumar added.nnSource: Press Trust of India