State Bank of is planning to open its new banking personnel training institute for employees of other banks in India and other South East Asian countries.
The institute will instruct leadership training to people in the mid-managemnet level and above with thrust on risk mitigation, banking regulation and technology. The focus will be on action-based and result-oriented research and capacity building, chairman Arundhati Bhattacharya said.
Addressing the media after inaugurating the institute she said the economy may rebound in another couple of quarters and banks need recapitalization soon to participate in growth.
“Plans are getting off the table with a number of infrastructure projects being tendered out. Growth should come in a quarter or two,” Bhattacharya said.
“Government now needs to do some heavy lifting,” she said at the launch of SBI’s sixth training centre in Rajarhat near Kolkata.
She said some traction is seen in sectors such as road, fertiliser but that would reflect in banks’ credit book with a lag.
At least seven banks which are under Reserve Bank of India’s prompt corrective action for high ratio of stressed assets and erosion of capital need government support sooner while the country’s largest lender SBI may not need it.
“I think we have enough strength to raise the capital that is required,” Bhattacharya said.
She said that merger of SBI and its associate banks is a deep structural reform and the bank would deliver positive results in 3-4 quarters.