SBI business activity index falls below pre-Covid level as lockdowns return

State Bank of India’s business activity index has fallen below the level before the corona virus pandemic, affected by lockdowns and restrictions in cities and states to slow down the outbreak.

The in-house Index of India’s largest bank dipped to a low of 75.7, a level it had attained in August 2020, and now a clear 24.3 per cent down from pre pandemic level. All indicators, except for labour participation and electricity consumption, have declined significantly in April, the index shows. Labour market disruptions are still manageable unlike the first wave of the pandemic.

State Bank of India expects FY22 growth projection at 10.4 per cent for real GDP (gross domestic product) and 14.2 per cent for nominal GDP. The Reserve Bank of India’s (RBI) projection for growth is 10.5 per cent, but analysts, including in SBI, have started revising their growth projections down.

Source: Business Standard