New Delhi : The credit from banks must grow by 12 per cent every year to meet the Centre’s target to achieve a $5-trillion economy within the next five years and the step taken for mergers of the PSBs is in the right direction to meet the goal, a top SBI official said Friday.Supporting the move to merge the public sector banks (PSBs) by the Union Finance Ministry, State Bank of India (SBI) MD Dinesh Kumar Khara said that the merger is “well- thought of” and will strengthen the banking system to support the economy to pursue $5-trillion target.”The banks’ credit must grow by 12 per cent year-on- year to meet the goal. Now the banks’ credit is about Rs 98 lakh crore. The decision to merge the PSBs is in the right direction to meet the target,” Khara said at an event, organised by CII here. SBI Deputy MD S K Varma said credit demand from the large corporates was “sluggish” so far in this fiscal but a revival in near future with good monsoon is expected.
