SBI is Exploring Ways to Expand Loan Growth

SBI is exploring ways to expand loan growth to sectors such as railways, roads and renewable energy, which are attracting higher public spending, chairman Rajnish Kumar said. India’s largest lender is also looking at investment opportunities in financial technology, or fintech, start-ups, Kumar said in an interview. The recapitalisation of public sector banks, for which the govt has announced a Rs 2.11 trillion plan, along with higher public spending on Infra, will help in stimulating private investments in the economy, he said. The state-run lender expects this to help small and medium enterprises, a major source of job creation in the economy, said Kumar. He also said that higher investments into highways and Infra will add more jobs in the construction sector. “What is probably not happening in a big way is (investments) in sectors where there is an over capacity,” he said, adding that investor interest is improving in the steel sector. The demand for steel and production capacity in the country are matched and faster economic growth will further boost prospects for this sector, said Kumar.