Mumbai, September 25: The State Bank of India’s Chief Arundhati Bhattacharya on Sunday said that India’s economy is expected to rebound in next couple of quarters and that banks need more funds to be able to provide loans to businesses when the pace of growth eventually stimulate. Also Read - Rs 2000 Notes News: Has Centre Decided to Discontinue Printing of Rs 2000 Notes? This is What Modi Govt Said | Read Here

“With a number of infrastructure projects being tendered out, plans are getting off the table. Growth should come in a quarter or two,” Bhattacharya who was in Kolkata said to reporters. She further indicated that the government now needs to do some heavy lifting. Also Read - SBI Extends OTP-Based Cash Withdrawal Facility From Its ATMs Starting September 18

The SBI chief said that some traction is being seen in sectors such as roads and fertilizers, but the benefits would reflect in bank’s credit books with a lag. Some reports suggest that there are talks of a stimulus programme to revive growth in the economy, with the Central Also Read - Sitharaman Holding Review Meeting With Heads of Banks, NBFCs on Loan Recast | What to Expect

There are talks of a stimulus programme may revive growth in the economy as the Centre is facing a huge task of balancing expansion imperatives and fiscal rectitude.

In last few months, state-run banks are in a need of cash to drive credit demand, which appears to have tapered in the wake of slowing growth and the overhand of bad loans.

At least seven banks that are functioning under the RBI prompt corrective action for a high ratio of stressed assets and erosion of capital soon need government support. However, the SBI, which is Indias biggest lender may not need it. “I think we have enough strength to raise the capital that is required,” Bhattacharya said.

She further added that the merger of SBI and bank associated with it would deliver positive results in three to four months quarters.