State Bank of India (SBI) chairman CS Setty said on August 8 that the impact of the US tariffs on the banking sector would be limited and sooner the issue gets resolved better it is.
“Our assessment is that the tariff impact on the sector is limited, the sooner this issue gets resolved better it is,” Setty said during the post-earning press conference.
Corporates are not talking about tariffs but in past two years, global uncertainties have added to lower loan growth. In the June quarter, corporate loans grew 5.7 percent on-year to Rs 12.03 lakh crore.
Setty said overall exposure of the banking system to the sectors which will bear the brunt of tariffs will be limited. SBI also doesn't have much exposure to these sectors, he said.
"But the sector factor what we have to take is uncertainty like how the tariffs will play out, how quickly this is going to be addressed. So that uncertainty will delay investment decisions and people will postpone their spending," Setty added.
India and the US ties are worsening by the day as American President Donald Trump piles pressure on India. on August 8, he ruled out trade negotiations between the two sides and even warned of secondary sanctions against countries buying Russian oil.
In response to a question on whether he expected talks between the two countries to resume in light of the 50 percent tariff, Trump said, “No, not until we get it resolved”. On August 6, Trump had announced an additional 25 percent tariff on Indian goods, taking the total levy to 50 percent, one of the highest in the world.
During a press briefing at White House, Trump was asked why India was being singled out for purchasing Russian oil when many other countries, including China, do the same. "It's only been 8 hours. So let's see what happens. You're going to see a lot more...You're going to see so much secondary sanctions,” Trump said.
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