SBI Chairman Praises Inclusive Budget for Economic Growth

SBI Chairman Dinesh Kumar Khara commended the inclusive approach of the budget and expressed confidence that the proposals will boost consumption growth. He highlighted the benefits for banks from the Prime Minister Awas Yojana and stressed the importance of digitalizing land records in agriculture. The budget also targets fiscal deficit reduction.

SBI Chairman Dinesh Kumar Khara on Tuesday praised the budget for its inclusive approach, expressing confidence that it would boost the sagging consumption growth.

In an interview with PTI Videos, Khara said banks will benefit from budget announcements like the Prime Minister Awas Yojana which will drive credit growth, and welcomed measures on loan recovery.

Khara also dismissed concerns about the removal of indexation benefits, noting that most homebuyers are first-time buyers who prioritize property acquisition over investment returns.

'I see it as an inclusive budget focusing on rural employment, skills enhancement, and tourism, which will have a significant impact on the economy,' the state-run lender's chairman remarked.

Highlighting the budget's fiscal discipline, Khara mentioned the commitment to reduce the fiscal deficit to 4.9%, potentially leading to a rating upgrade that could lower lending rates.

For the agricultural sector, digitalizing land records will simplify the issuance of Kisan Credit Cards, according to Khara.

He added that small businesses will benefit from a new credit guarantee scheme and measures ensuring credit continuity for stressed enterprises.

Khara expressed hope that the credit continuity scheme, assisting advances overdue for over 30 days but not yet non-performing, will include safeguards against misuse.

The budget's focus on a green economy is apparent through initiatives in finance, rooftop solar installations, and small to medium nuclear reactors, he stated.