Economic ​rebound will accompany credit growth: SBI MD

Challa Sreenivasulu Setty, MD, SBI, says that the Reserve Bank of India's accommodative stance gives comfort to the market as growth is important at this juncture. Edited excerpts from an interview.

On RBI policy outcome
At this juncture, we need to send growth signals. We are still not out of the woods. While the number of cases has come down, the economy has opened up and the rebound seems to be real, it is important to give a direction. We are glad to know that there is an explicit forward guidance in terms of accommodative stance. That gives comfort to the market, in terms of what the RBI is thinking. I believe this accommodative stance is important.

On negative real interest rates
Economic recovery will have to precede credit recovery. The RBI anticipates that Q3-Q4 will have a positive growth. So there will be some credit growth. Whatever credit growth has been happening now is mainly in the retail space. Investment credit is also picking up. The last two quarters have been extremely tough. The rebound will accompany credit growth.