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In poor health already, banks come under grip of Covid-19 pandemic

Anaemic credit growth due to risk-averse borrowers; concerns over bad loan build-up resurface

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Due to the low credit offtake, banks are saddled with a huge liquidity surplus, on which they have to pay interest to the depositors

Anup Roy Namrata Acharya Abhijit Lele Mumbai/Kolkata

9 min read Last Updated : Jun 14 2020 | 10:05 PM IST

Even his worst detractors can’t accuse State Bank of India Chairman Rajnish Kumar of being economical with optimism. So, when the head of the country’s largest bank says, “I have money, but there are no takers of the money,” the signal is loud and clear: India’s bank credit market is in the midst of one of its worst crisis.

Due to low credit offtake, banks are straddled with huge liquidity, on which they have to pay interest to the depositors, but can’t earn interest by deploying loans, their core business.

That explains Kumar’s desperation. Speaking at a meeting of the

Topics : Indian Economy State Bank of India liquidity crisis

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