Country’s largest lender State Bank of India (SBI) on Friday said mis-pricing of risks is a matter of concern as there is adequate liquidity in the system. As deposits are flowing in the system and credit is yet to be offloaded, bankers may be tempted to invest in alternative avenues such as T Billshandjob State Bank Of India Chairman Dinesh Kr Khara Said in a webinar organized by Bengal Chamber of Commerce and Industry.

“The depth of this alternative investment market is shallow. There is a possibility of mis-pricing of risks. But I think there will be no compromise on underwriting standards as the banking system has learned the hard way due to huge NPAs,” he said.

The SBI chairman said there is a need to strike a balance and unless growth improves, it will be a big challenge.

With regard to credit offtake, the banker said that some industrial sectors are showing improvement, but it is not universal across all sectors.

“I hope that profit linked incentive This scheme will greatly help in off-take of liquidity, especially MSME Area. Now there is a possibility of some private sector investment apart from public sector undertakings. The road sector is looking promising,” he said.

Khara said that given the current macroeconomic conditions, it is unlikely that the central bank will change interest rates in the coming days. monetary policy committee meeting.

He said the concept of bad bank is good and different from asset reconstruction companies in the past.