SBI chief says no fund worries, economy fine

O P Bhatt, chairman, State Bank of India (SBI), today said there was ample liquidity in the financial system to support credit growth, and there were no signs of overheating in the economy.

"There is enough liquidity and there should be enough circulation so as to maintain liquidity at a desired level," he told reporters on the sidelines of a banking summit here.

Bhatt said last quarter of every fiscal always witnesses high credit growth, and banks are generally prepared for it.

On slowing down credit to the booming real estate sector, Bhatt noted that credit was probably "not increasing".

Bhatt nixed any suggestion of overheating of the Indian economy, which has grown at a robust 8-9% in the last two quarters, making it the second fastest major economy in the world. He, however, pointed out that there were some sectors where credit growth was high and this could be a cause of concern.