SBI Chairman Emphasizes Need for Revitalized Private Investment

SBI Chairman C S Setty emphasized the pivotal role of sustained consumption in driving private capital expenditures, given that corporates currently operate at approximately 75% capacity utilization. Speaking at an AIMA event, Setty noted the strength of the public capex pipeline, particularly in public sector refineries.

He mentioned SBI's significant corporate loans for projects in discussions or pending approval, largely in refineries and renewable energy sectors, while core sectors like steel and cement await a demand resurgence. The government's measures to boost demand, alongside RBI's efforts, are expected to instill confidence in corporates.

Setty advocated for allowing banks to fund mergers and acquisitions, highlighting improved transparency. With corporates holding Rs 15 lakh crore in cash, he pointed out potential opportunities for equity and debt-driven acquisitions, primarily cross-border, raising external debt concerns. However, no plans for listing SBI's Yono app are underway.

(With inputs from agencies.)