SBI Chairman Dinesh Kumar Khara said on Thursday that India requires $ 1 trillion in loans to become a $ 5 trillion economy.
“Considering the fact that we have an ambition to grow to a $5 trillion economy, in my mind, the debt and GDP ratio needs to improve. If we look at developed markets, that (debt to GDP ratio) is around 200%… So I think there is a huge scope for banks to contribute to the country’s journey to be a $5 trillion economy,” Dinesh Kumar Khara, Chairman, State Bank of India, said in an interview to ET Now.
He further said, “We are almost a $3 trillion economy – when it comes to the debt to GDP ratio, particularly banking debt, it is about 56%. As of now, for this $3 trillion economy, our loan book size from the banking system is about $1.6 trillion. We expect that for $5 trillion, it should go up to about $2.6 trillion. All said and done, there is a huge opportunity for banks to contribute in this journey towards a $5 trillion economy.”
Dinesh Kumar Khara also pointed out his outlook for the economy as well as his company. Talking about the outlook for the SBI for 2022, Khara said he hopes to achieve an ROA of 1% and ROE of 15% + in the medium term.