Signs of pickup in bank credit: SBI chairman

Mumbai, June 19: State Bank of India's chairman Arundhati Bhattacharya on Friday said there are signs of pickup in bank credit and demand for working capital from corporate shas also started to rise.

“We are seeing green shoots in the credit cycle. We are seeing some brownfield projects coming in. There are a few new projects in the renewable energy segment but not too many.We also see some signs of pickup in working capital, "Bhattachary a told reporters here on the sidelines of a banking event organised by the Indian Chamber of Commerce (ICC).

There are lot of plans, which corporates have finalised and they have also started working on projects, she said.

“We have to give a little time

‘We are seeing green shoots in the credit cycle. We are seeing some brownfield projects coming in. There are a few new projects in the renewable energy segment. We also see some signs of pickup in working capital’

for these projects to be properly framed for them to be brought for financing. There is no point in hurrying this process," she said.

The government's effort to set up various committees to look at the public-private partnership structure and tender documentation, among others, would help speed up implementation of projects, she said.

Answering a question about stake sale in its general and life insurance arms, Bhattacharya said that SBI is yet to finalise valuation of these companies.

“In between, the Irda issued draft guidelines regarding the bank assurance model due to which the valuation exercise was on hold. Now that revised guidelines have come, the valuation exercise has restarted. So, we will know in a little while," she said.

When asked about US Fed rate hike, she answered that market has already discounted one rate hike.

“If the data supports them then there may be two rate hikes (by US Fed) but if it doesn't, then there may be one. But I think one rate hike is accepted and discounted," she said.