On maintaining 15 per cent credit growth, he said, “I am quite hopeful the reason behind is kind of a term loan and also the underutilisation of the working capital, which is all aggregating to almost Rs 5 lakh crore, and the pipeline is almost Rs 1.2 lakh crore. So, I’m quite hopeful that we should be in a position to sustain this in the subsequent quarters.”
With the latest rate hike by RBI, the repo rate (short term lending rate at which banks borrow from the central bank) increased to 5.40 per cent, an increase of 140 basis points since May this year.
On the prevailing economic situation, Khara said the effect of the Covid pandemic has subdued to a large extent, thanks to the governments’ massive vaccination programme.
However, he said, the volatile geopolitical situation still poses a downside risk. The global output has contracted in the second quarter of this year going to the downturn in China and Russia.
The Indian economy remains resilient despite global headwinds, resulting in rise in inflation, surge in crude prices, increase in commodity prices and disruption in supply chains, he said.