Leading Indian Bankers say, the recent volatility in Indian Rupee is a temporary phenomena and the currency will stabilize soon. They said there is no need to press the panic button. Addressing a Panel discussion in Dubai, the CEOs of Bank of Baroda from GCC region, Punjab National Bank, Corporation Bank and the State Bank of India in Dubai, said India’s growth story will continue in the long term despite early blues.
The CEO of State Bank of India Debojyoti Rai Chaudhary said India has highest savings to GDP ratio and the long terms prospects are very good.
The CEO of Bank of Baroda GCC region K. Venkata Ramamoorthy said the silver lining is the increased remittances by the NRIs. The Corporation Bank CEO Ajai Kumar cited a strong credit demand in retail and Small and Medium Enterprises a harbinger of positive outlook. This sector contributes around one third of the GDP.
The CEO of Punjab National Bank, Raj Kumar Nair said the current depreciation can’t be equated with devaluation of rupees in the past. Indian Ambassador to UAE, M.K. Lokesh said with the strong fundamentals, the Indian economy can sustain its growth in the long run.
Rising oil import bill, increasing trade deficit, inflation, interest rates, capital outflows, slow pace of were and Euro zone crisis were cited as some of the factors responsible for the current volatility in the Rupee.