MUMBAI, Dec. 21 (Xinhua) -- Indian corporates are not borrowing enough and not utilizing their capacities well, said Rajnish Kumar, Chairman of the State Bank of India, Saturday.
"Today there is no problem of liquidity or availability of the funds with the banking system. Currently three sectors, solar, city gas projects and roads, are seeing demand for credit," Kumar said at 92nd annual convention of Federation of Indian Chamber of Commerce and Industries (FICCI).
The State Bank of India is owned by the Indian government and is ranked 236th in the Fortune 500 list in 2019.
Asia's third largest economy has grown at its slowest pace in six years to 4.5 percent in July-September quarter and its current banking credit growth has been at its five-year low at around 8 percent.
"We can't lower the interest rates without lowering the interest rate for depositors and there is a threshold below which we cannot reduce the interest rate for deposits," Kumar said, adding that the Indian banking system dependence for borrowing is largely depositors.
So far, the country's Central Bank has reduced interest rates by 135 basis points this year to boost growth.
Global economy is going through a phase of synchronized slowdown and more than 90 percent of the world will see a reduction in growth in the year 2019, said Sandip Somany, President, FICCI in his initial remarks.
