Sudden depreciation or appreciation of Rupee not good: SBI

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Group economic advisor of the State Bank of India (SBI), Soumya Kanti Ghosh said that any sudden appreciation or depreciation of the rupee was not good as it adds volatility in the market.

Speaking to reporters on the sidelines of an ICC seminar here today, Ghosh said that the rupee had experienced an orderly depreciation as it moved from Rs 64 to a dollar to Rs 70 over a span of five to six months. Whether the rupee touches Rs 72, it hardly matters, he said.

Relating to GDP growth, he said as per SBI research estimates, in the first quarter it was expected to be 7.7 per cent in the first quarter and 7.5 per cent for the full fiscal. On dual control of public sector banks (PSBs) by RBI and the government, he said "the apex bank has enough powers to control them. PSBs are subject to more audits than private banks".

Governance of any bank is ownership neutral, he said. The dual impact of demonetisation and GST in the economy was over, according to him.