State Bank of India says country's interest rates likely to stay higher for longer

Well, as far as higher rate for longer, we expect that just for for some time to go it should be because but certainly I would expect that perhaps Indian Central Bank will will probably decouple from the rest of the central banks for the simple reason that our inflation directly is actually now turning out to be what we would really expect it to be. So it is out already less than 5%. So I expect that if at all this kind of a trajectory continues, then maybe somewhere in the October, December quarter where you might see some kind of a reduction in the interest rate. Oh, that’s interesting. And it’s interesting that you’re saying that could be something that the RBI could take a call on separate of what the Fed does with its own policy decision. I do want to understand, Sir, when I look at your stock, it’s gained nearly 30%. If you can bring up that chart, once again, 30% year to date. And I don’t want to direct comment on the stock, but I do want to get your understanding on what is it changing about PSU banks in India. They’re suddenly investors of buying into a state-run banks. You know, there’s always been traditionally a bit of a discount to private banks, but it seems like maybe the tide is changing for PSU banks such as SBI for investors. And are you getting that sense from investors as well? Are they liking the PSU banking story in India and what are they specifically liking about the story? Well, actually it has so happened that you know when if at all we can handle our advances very well and that is something which is reflected in our provisions as well and I think it holds good for the other PSU banks as well. But I think as says we are concerned we have invested well in terms of standing our underwriting practices and also we have, we have research, we have got the CRD technical department in place who are actually helping us in ensuring that we have the right risk being underwritten. And also at the same time we are also ensuring that we should be the patient to have the right risk premiums also incorporated into our pricing. So I think there is quite a lot of consciousness on the part of the lenders and and particularly for State Bank of India where we are ensuring the the right underwriting and thereafter that control follow up etcetera. And on the top of it, you know the, the ecosystem which has got created in the country has also led to some kind of irresponsible borrowing from the corporates and as well as from the end users. Because now there’s a there’s a culture by which we are having the risk rating and also the credit bureaus are are also in a position to comment upon the about the behaviour of the person in particular or for that matter corporate. So these are the kind of enablers which has helped the system to really improve its underwriting. And I think this is one of the reasons why perhaps market has also started recognizing the strength of the private sector banks because they have got a very wide outreach and for us also for instance more than 22,500 branches and then it helps us in in garnering deposit from across the country and spotting the opportunities across the country.