INSUBCONTINENT EXCLUSIVE:
New Delhi: SBI Chairman Rajnish Kumar on Saturday said most banks will be in a good position with respect to stressed assets by March and
there is no dearth of liquidity in the system for lending
He added that there are opportunities to lend in sectors such as infrastructure and consumer lending as there is not much of a decline in
"By March 31st, most of the banks will be in a good position with respect to stressed assets," Kumar said at the 92nd Annual Convention of
industry chamber FICCI here
On transmission of monetary policy, he said the banks cannot lower rates beyond a threshold due to asset liability mismatch issues
Kumar stated that there is no shortage of capital in the system, but the corporates are not borrowing enough and not utilising their
On lending to the telecom sector for the next round of spectrum auctions, he said, "For us lending to the telecom sector for spectrum is
On paper it is secured as the auction is to be done by government but practically it is totally unsecured."
"So in such circumstances,
banks will have to evaluate carefully before lending to the sector as the probability of default is very high," Kumar said.