In chat with Anil Singhvi, SBI MD speaks on RBI monetary policy; says loans at lowest levels, perfect time to avail them

 In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, State Bank of India’s International Banking Managing Director Ashwini Tiwari says it is the perfect time to avail any kind of loan as the interest rates on all loans are at the lowest levels. 

The managing director advises that the interest rates are already at the bottom, as many banks have come out with the cheapest housing loans ever so far. He adds, if consumers are looking forward to take loans of any kind, this is the perfect time to do so, as almost all loans are at the lowest level. 

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Tiwari also pointed out, moreover, the typical charges on such loans are generally waived off during the festival season.  

According to SBI International Banking MD, “The corporate credit growth is yet to pick up on a larger scale and unless this doesn’t pick up, investment engine will be slow. We are discussing with the RBI Governor about corporate credit growth and also discussed 28-day VRRR going forward.” 

In the October policy outcome, the RBI has announced 28-day VRRR (Variable Reverse Repo Rate) besides a 14-day VRRR on Friday. This was suggested by the SBI to the Governor on multiple occasions mainly to improve the corporate credit growth. 

The central bank in its rate policy decision has maintained and extended the deadlines of the economic recovery measures, Tiwari said, “We hope that support so far given to MSME, corporate, and all other sectors should be now visible as the overall economic activity is coming to normal.”  

RBI was very clear with this policy decision that it doesn’t want to give surprises to the market and economic recovery trajectory amid surplus liquidity, which is around Rs 12-13 lakh crore, Tiwari said.  

The RBI’s MPC has kept the October policy’s rate unchanged to 4 per cent on the back of the evolving macroeconomic and financial conditions. The committee voted unanimously to maintain the status quo and by a majority of 5 to 1 to retain the Accommodative stance.