Mumbai: SBI chairman Dinesh Kumar Khara on Tuesday lauded the budget for its inclusive approach and exuded confidence that the proposals will boost sagging consumption growth.
In a conversation with PTI Videos, Khara said banks will be helped by the Budget announcements like the Prime Minister Awas Yojana (PMAY) which will push credit growth, and also welcomed the specific measures on loan recovery.
When asked if doing away with the indexation benefits will act as a dampener, he replied in the negative, pointing out that a bulk of homebuyers in the country are first time buyers and do not get driven by investments.
"I read it to be very inclusive budgets keeping the focus on rural and also for employment, also skilling and tourism. I think it will have a huge impact across the economy," the state-run lender's chairman said.
The commitment to narrow the fiscal deficit to 4.9 per cent augurs well for the economy, he said, listing out the impact it will have including a possible rating upgrade that can help soften lending rates in the economy as the sovereign rating goes up. For the agricultural sector, a focus on digitizing land records in agriculture will make availing kisan credit cards easier for farmers as compared to the past, Khara said.
He said the small businesses sector also has a lot to cheer about, especially with a credit guarantee scheme and also another one where there is a commitment on credit continuity for the enterprises facing stress. Khara hoped that the credit continuity scheme, under which advances which are overdue for over 30 days but yet to slip into non-performing category will get support, will come with certain guardrails that shall ensure that it does not get abused.
The budget document's focus on making India a green economy is also visible through initiatives on finance, rooftop solar in homes and small and medium nuclear reactors, the veteran banker said.
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