Retail, SME sectors could be next bubble: Axis Bank MD & CEO Shikha Sharma

Speaking at the Business Standard Banking Round Table, Sharma also said credit growth to the corporate sector has been relatively weak

The retail and medium-sized enterprises sectors have been showing credit demand but the banking industry is worried that they could be the next bubble, said Axis Bank Manging Director & CEO Shikha Sharma while speaking at the Business Standard Banking Round Table 2016.

Sharma also pointed out that credit growth to the corporate sector has been relatively weak and that working capital demand has also been depressed. Stressing further on the point, she said that corporate India has not seen any new projects coming up in the past 18 months and working capital demand had also been depressed. 

Sharma said that the reason for the slow growth was that there was a base effect issue as large project funding had taken place three years back. 

The Business Standard Banking Round Table, 2016, started on Thursday, with the finest minds in Indian banking coming together and sharing their thoughts on some of the critical issues in not only the banking industry but also the economy at large.

On a brighter note, she said that there was a lot of headroom for growth in retail credit and that Axis Bank continued to be optimistic in that regard. She added that corporate credit would also come back, along with investments.