Expect inflation either to remain stable or come down: RK Dubey, Canara Bank

In an interview with ET Now, RK Dubey, CMD, Canara Bank, talks about the RBI credit policy. Excerpt:

ET Now: What is your initial reaction on what the RBI governor has done and the commentary that he has given as well?

RK Dubey: I am very happy with the policy announcement. It has not surprised me. It is supporting growth because the growth has been subdued and there was a slight pick-up seen. Inflation is not directly responsible for only food and vegetable prices.

The government has told that food prices are likely to go down. We should welcome it, rather than just being critical about this.

Looking at the weak economy and the inflation growth dynamics, it is a very good step. We will wait for one month or maybe earlier. As the things stand, inflation will remain stable or will go down.

Mythili Bhusnurmath: What is your view on credit uptick? Do you think there will be a greater interest by the borrowers in taking from the banks?

RK Dubey: I do not think so. The case of growth has been good. The credit growth has been close to 28-29 per cent and I hope it is likely to continue around 26 per cent in Canara Bank up to March.

Mythili Bhusnurmath: One quick take away from you before we wrap up.

RK Dubey: The inflation is likely to stabilise or come down. Growth should happen because the CAD is coming under control and the government is tightening control on expenditure too.

There would be some positive movement in disinvestment also in the coming three months. The governor has rightly said the growth in second half is likely to be better than the first half. We should be optimistic that things will improve.