ET Now Leadership Dialogues: Decoding Unsecured Loans, Global Businesses & SBI's Int'l Ambition

I'm going to keep SBI away from the equation but if you really have to give us a sense of what is happening in the industry, especially in categories of unsecured loan, in the categories of gold loan, do you think there is a bit of froth building up there? Well, yes, of course, see what happened when it comes to unsecured loan for that matter the gold loans also see actually, you know, banking is a boring basis. So one has to keep on doing the similar kind of thing again and again and again and again. So very often some people tried to resort to innovation and those innovations were perhaps shortcuts. Shortcut does not work in banking. So ability to repay is absolutely essential. Underlying security particularly when it comes to gold loan is absolutely essential. So if at all somebody tries to work out an innovation which will probably have the shortcuts for this, that leads to challenges. And I think RBI could sense it in good time and they took the necessary remedial steps at least syndicated to the industry, better take the remeditions. Otherwise, there could be consequences which may not be in the interest of the financial sector. I'll also like to draw your attention to what essentially is happening in terms of your global businesses. Lot of banks in a sense have consciously reduced the exposure to global businesses. SCB has also done that. But you have a formidable presence given that global economy is in a topsy turvy mode, emerging markets on a deep recession, how do you see that end of the market, that end of the business moving for SBI? For us it is as of now it is 12% of our business of our balance sheet comes from our international operations and we have an ambition of scaling it up only why? Because when the India is becoming a global force to reckon, when India is becoming part of the global supply chain, it unfolds the opportunities that is one. And secondly, we are as far as our global operations are concerned at times where opportunistic also depending upon the geographies, depending upon upon the line of witnesses were in a patient to improve our names in the international operation. And certainly it helps us in terms of our domestic business also because when we are hoping in the overseas investors even that is something which we can do. So I think for us, we will continue to remain in the geographies where we are and we are selectively looking at it the other geographies also where we can expand where there are opportunities where. So that is very clearly a focus area for us and in the medium term we will like to increase our international banking book from 12 to at least 15%. A couple of last questions, just two, three questions As a banker saw you in a perfect position to perhaps tell the audience and the viewers that which are the two or three sectors you think there is they are on the cusp of strong growth. You know last time for example, I met you, you specifically said solar, renewable manufacturing. So as a banker for next three to five years, where do you think demand at the corporate end is strong and you happy to learn looking at the dynamics of the sector? No, I think I, I still maintain that renewable solar in particular will continue to be a very, very promising sunrise sector and also the infrastructure and which will lead to decent demand for this, for the cement and steel that will remain a very, very important sector for the economy in the days to come. And of course, now with the, with the kind of focus which is there on manufacturing and becoming part of the global supply chain, even white goods and engineering goods are also assuming significance. Last year, Sbis profit was higher than many of the IT and many of the FMCG companies put together. Isal Kisko beat Karnevali up. I don't plan for anything. So I only plan for actions. Outcome is the result of the actions. Sir, with all due respect, no plans after April. After August, when the time will come, I'll unfold my plans. Also, we coined a phrase in one of the interviews. Then I said who says elephants cannot dance? You said why SBI is not ready to get for a tango and a salsa. So what should shareholders expect now that you think the SBA is ready to do a tango and a salsa? Yeah, I think we have got our muscles are strong enough we can do anything. Guys, that's SBI Chairman for you. I mean it is absolutely incredible the way SBI has crafted its own course from complete stress in the COVID to the kind of recovery what they've done the stock at an all time high market cap is something which is in clear indication of how markets are now really endorsing what good work SBI are doing. So Mr. Khara, its been an absolute pleasure personally for me to interact with you, see how you've navigated SBI and how you've navigated the banking sector in what could be called extraordinary COVID times. Thank you very much, Sir. Thank you for joining us. Thank you very much, Nikhil. Yeah.