Guwahati: State Bank of India (SBI) has Rs 2.5 trillion worth of corporate loans lined up, Chairman Dinesh Kumar Khara said.

He said that the banking system was currently much better placed in terms of risk assessment.

“Today, it’s not merely the equity but the colour of the equity which has improved,” Khara said, referring to learnings incorporated by the banking system from the previous cycle of strong loan growth and a subsequent build-up of bad assets for banks. He was speaking at the SBI Banking and Economic Conclave.

Khara added that up to 95 per cent of SBI’s corporate balance sheet was provided for.

“The growth is coming at a time when corporates are deleveraged. That also gives us the confidence that the path which we are treading is sustainable,” he said.

“The ecosystem in terms of strengthening the ratings system, GSTN has given us credible data to evaluate the risk better. The banking sector has the benefitted of leveraging all these ecosystems,” he said.

In response to a query regarding the wide gap between bank credit growth and deposit growth — and the subsequent need to mobilise funds — Khara said liquidity in the banking system had improved in November on account of government spending.

Elucidating on the challenges being faced by banks because of the currently wide gap between deposit growth and credit growth, Khara spoke about how some lenders would have raised resources at a high cost.

“What is a high CD (credit-deposit) ratio level? Normally, it should be at 75 per cent. We are at 65 per cent,” Khara added.

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