Though lack of credit demand exists in the economy, there is no supply-side constraint as the public sector banks are more or less well-capitalised, he said.
"Demand for credit in the economy is subdued. There is a need for stimulus in the economy", Kumar told reporters here.
He was in Kolkata to attend the multi-level consultation programme with the branch managers of SBI in the region.
"There is no supply-side constraint. More or less, the public sector banks are well-capitalised and bank rates also moderated," he said.
Kumar hoped that monsoon will have a positive impact.
Increased spending by the government and the upcoming festival season would boost demand, Kumar added.