State Bank of India’s Ecowrap report
According to the Ecowrap report of the State Bank of India the country’s GDP is likely to grow by 1.3% in the fourth quarter of 2020-21 and might see a contraction of 7.3% for the full financial year. The March 2021 quarter GDP estimates as well as the annual estimates will be released by the e-National Statistical Office (NSO) on 31st May.
Overview of the report
- A nowcasting model in association with the State Bank Institute of Leadership (SBIL) located in Kolkata has been developed by the SBI. The model has 41 indicators associated with industry activity, global economy and service activity.
- The report has also said that taking into consideration the 1.3% growth in GDP, India would still be the 5th fastest growing economy among the 25 countries that have published GDP report so far.
- According to the estimates of the report there might be GDP loss of up to Rs 6 lakh crore during Q1 FY22.
- The real GDP loss according to the report would be between Rs 4 to 4.5 lakh crore, hence it can be said that real GDP growth would be in the range of 10-15%
- In the year 2020-21 deposits had increased by Rs 2.8 lakh crore and in the current financial year, it has already increased by Rs 1 lakh crore calculated till 7th May.
- Alternating deposit contractions have also been noted in the first three fortnights of FY2022. This can be assumed to salary credits in the first fortnights and withdrawal for health related expenses in the later ones.
About State Bank of India
Formerly known as Imperial Bank of India, it was taken over by the Government of India in 1955 and renamed as the State Bank of India. Its headquarter is located in Mumbai and the current chairman is Dinesh Kumar Khara.