SBI Conclave: Experts discus challenges and opportunities for commercial banks

CNBC-TV18’s Latha Venkatesh moderated an esteemed panel of experts to discuss challenges and opportunities for commercial banks on the second day of 8th Annual SBI Banking and Economics Conclave.

Vaidyanathan said, “A large number of players who did not do banking for the last 100 years suddenly have access to transaction data and they are coupling it with the lending capability. So, supposing I am a fantastic Linda, but I don't have very good transaction database for the last 100 years. Then we combine our lending capability with transaction data of 100 years and make it open. So, I think India is fast moving towards open banking and this is a finest form of open banking happening in India. It is a big thing for India.”

On credit growth Bandyopadhyay said, “Reserve Bank of India needs to look at credit growth from a different lens because bankers are not the only lenders now. There are multiple sources for credit for you and me, I think that data is not catching. So that is one part of it. I think we should not go by just vanilla credit growth and it should be three times GDP. That is the kind of approach I think we need to change. Don't look at credit growth in isolation, because there are credit growth, there are multiple sources of credit, there are lending at various levels which the RBI WSS weekly statistics do not catch, but be going beyond by remit I am just if you allow me to say I see more challenges than opportunities.”