The loan demand for Indians who number 467 million is rebounding, says a banker

Indian businesses tapping India’s biggest lender are unable to cut back on investment plans despite raging inflation and higher borrowing costs, suggesting that the nation’s economy is improving.In an interview at his Mumbai office, Dinesh Kumar Khara, chairman of State Bank of India, said businesses are steadily drawing down from a $71 billion loan pipeline. Loan growth at the 216-year-old lender, a banker to one out of every three Indians, is expected to be robust, underpinned by demand from businesses after two straight years of credit contraction, Khara said. Dinesh Kumar Khara, managing director of global banking at the State Bank of India Ltd. (SBI), poses for a photograph following a Bloomberg Television interview on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 22, 2019. World leaders, influential executives, bankers and policy makers attend the 49th annual meeting of the World Economic Forum in Davos from Jan. 22 – 25. That broadly mirrors a trend where loan growth in India’s 120 trillion rupees ($1.5 trillion) banking system is expanding annually at its fastest pace in three years. While part of the credit demand is to cover rising costs, the rest is going into business expansion and investments for capacity addition.