India's largest lender State Bank of India has called on industrialists to strengthen their credit capacity to increase investment in the economy. Bank chairman Rajneesh Kumar said in the FICCI program that banks have no shortage of capital and by the end of the current financial year, there is a significant reduction in their bad loans (NPAs). In such a situation, they may be in a condition to give more loans to industries. He also said that SBI is not able to utilize its full lending capacity as there is no demand for the loan from the industry.

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Kumar said, 'Without increasing investment, it is not possible to give a size of five trillion dollars to the country's economy. At present, the total debt of banks is 96 lakh crore rupees. To give the economy size of five trillion dollars, this debt has to reach at least double. He said that such projects are not visible from where the demand for investment is coming. The few projects are related to solar energy, city gas and to a lesser extent, road projects. SBI is the largest bank to finance projects. But the capacity is not being fully utilized. Kumar said that last year, only two banks which could be considered a truly big project were given financial assistance by banks. One of them was HPCL's project in Rajasthan which was about Rs 50,000 crore in size. The second project was the Mumbai Nagpur Super Communication Expressway and was nearly the same size.

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According to the information received, it is found that the rates cannot be reduced beyond the limit. SBI chairman Rajneesh Kumar says the financial social security cycle in India is weak. Therefore, banks cannot provide cheaper loans to companies beyond a limit, as their default rate is extremely high. Kumar said, 'The banking system of the country is dependent on depositors to an extent. If we give cheaper loans, we will pay less interest to depositors. But a large part of the population belongs to senior citizens, whose major income comes from interest on bank deposits.

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