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Govt steps will address irritants: SBI chairman

By STAFF REPORTER

GUWAHATI, Aug 24 - Pinning hopes on the normal monsoons and festive season for a turnaround in the sectors hit by slowdown, State Bank of India chairman Rajnish Kumar today said the measures announced by the Finance Minister yesterday are �qualitative in nature� and will address the irritants plaguing banking and taxation.

In the wake of the slowdown in some sectors, the Finance Minister had announced 32 measures yesterday to boost the economy.

�In terms of liquidity and in terms of enablers for flow of credit, the right conditions have been created by the government and RBI. Issues and challenges which were coming in the way of flow of credit will be addressed to a large extent. More measures, including sector specific ones, are likely to be announced,� Kumar said addressing a press conference here.

He said the framework announced yesterday were after a lot of consultations and feedback on the ground. Many suggestions and feedbacks given by banks and industry have been considered by the government, he said, adding that it would lead to enhanced flow of credit and in turn revival of demand.

He, however, said there was no recession as such, but the growth in some sectors like auto has come down.

�There has been a decline in demand in certain sectors, particularly auto sector. But some trends are global. Decline in vehicles is across the globe. India is not an exception. We are part of a larger economic system. If there are issues elsewhere, we cannot be immune to it,� he said.

Kumar said as the festive season approaches, economic activity will pick up and there will be a revival of demand.

Another factor that will play a significant role in flow of cash in the economy is the government announcement of release of all pending dues, he said.

The SBI chairman was here for the second leg of consultations held to discuss improvement of flow of credit to various sectors and to align branch level priorities to national priorities.

Today�s consultations were attended by representatives from the government as well as the industry.

�Issues and constraints facing the banks for which they were not able to deliver at the grassroots level were discussed. Based on the discussions we will prepare a document relevant to the State of Assam which will have action points at three levels � one internal to the bank, the second for the State and the third is for policy interventions at the central level,� he said, adding that by September-end there will be a blueprint for public sector banks as to what needs to be done.

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Govt steps will address irritants: SBI chairman

GUWAHATI, Aug 24 - Pinning hopes on the normal monsoons and festive season for a turnaround in the sectors hit by slowdown, State Bank of India chairman Rajnish Kumar today said the measures announced by the Finance Minister yesterday are �qualitative in nature� and will address the irritants plaguing banking and taxation.

In the wake of the slowdown in some sectors, the Finance Minister had announced 32 measures yesterday to boost the economy.

�In terms of liquidity and in terms of enablers for flow of credit, the right conditions have been created by the government and RBI. Issues and challenges which were coming in the way of flow of credit will be addressed to a large extent. More measures, including sector specific ones, are likely to be announced,� Kumar said addressing a press conference here.

He said the framework announced yesterday were after a lot of consultations and feedback on the ground. Many suggestions and feedbacks given by banks and industry have been considered by the government, he said, adding that it would lead to enhanced flow of credit and in turn revival of demand.

He, however, said there was no recession as such, but the growth in some sectors like auto has come down.

�There has been a decline in demand in certain sectors, particularly auto sector. But some trends are global. Decline in vehicles is across the globe. India is not an exception. We are part of a larger economic system. If there are issues elsewhere, we cannot be immune to it,� he said.

Kumar said as the festive season approaches, economic activity will pick up and there will be a revival of demand.

Another factor that will play a significant role in flow of cash in the economy is the government announcement of release of all pending dues, he said.

The SBI chairman was here for the second leg of consultations held to discuss improvement of flow of credit to various sectors and to align branch level priorities to national priorities.

Today�s consultations were attended by representatives from the government as well as the industry.

�Issues and constraints facing the banks for which they were not able to deliver at the grassroots level were discussed. Based on the discussions we will prepare a document relevant to the State of Assam which will have action points at three levels � one internal to the bank, the second for the State and the third is for policy interventions at the central level,� he said, adding that by September-end there will be a blueprint for public sector banks as to what needs to be done.