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Inflation expected to stabilise by Sept. end: SBI Chairman

Some 50% of the start-ups in the country were supported through equity funding today while the share of debt could grow now on through SBI’s dedicated branches for start-ups, says Dinesh Kumar Khara.

Some 50% of the start-ups in the country were supported through equity funding today while the share of debt could grow now on through SBI’s dedicated branches for start-ups, says Dinesh Kumar Khara. | Photo Credit: PAUL NORONHA

Inflation may stablise as things are expected to look good by the end of September, according to SBI Chairman, Dinesh Kumar Khara.

Inflation had eased to 6.71% in July and going forward, although supply-side constraints were still there, they were getting addressed, and therefore, the situation was improving, Mr. Khara told the media here on Tuesday.

“The falling crude oil prices will also play a key role in bringing inflation down and overall, the inflationary scene in the country will look better by the end of September,” he added.

Responding to a query on rising interest rates, he said, interest rates were moving to the next level, however, it would not have any significant impact on the home markets.

Mr. Khara was in the city in connection with the opening of SBI’s first exclusive branch for start-ups in Karnataka. The bank has plans to open dedicated start-up branches across the country and in the next six months, it would open more such branches in Gurgaon and Hyderabad.

Funding via debt

Commenting on the start-up funding scenario, the SBI Chairman said some 50% of the start-ups in the country were supported through equity funding today while the share of debt could grow now on through SBI’s dedicated branches for start-ups.

“Some start-ups have reached out to us as they had no source of funds. We thought we could fund them and save them from sharing their equities. We have already invested in over 100 such start-ups,’‘ he added.

In the last 18 months, SBI had lent ₹250 crore to 104 start-ups. The bank also has an equity allocation under which it has already invested ₹5,000 to ₹6,000 crore in various businesses, including start-ups, as per Mr. Khara.

He said the overall outlook of the start-up ecosystem had drastically changed. “Earlier, start-ups offered some problem-solving aids or some kind of productivity-enhancement tools. But today, they have moved up the value chain, some turned unicorns and some others have commanded a higher rate of IRRs,’‘ he added.


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Printable version | Sep 6, 2022 9:30:10 pm | https://www.thehindu.com/business/inflation-expected-to-stabilise-by-sept-end-sbi-chairman/article65775708.ece