The next two-months are crucial for the Indian-economy that's facing its worst slowdown in six-years amid debate about whether the downturn is cyclical or structural as the key automobile industry faces headwinds, said SBI chairman Rajnish Kumar. He reiterated his support for the government's move to consolidate state-owned banks. India's growth slumped to a six-year low of 5% in the June quarter.

Finance Minister Nirmala Sitharaman unveiled a set of bold reforms with the stated objective of enhancing credit growth in order to put India on the path to becoming a $5-trillion-economy and at the same time sought to ring-fence the credit system to avoid a repeat a Nirav Modi type loan fraud. The FM also announced that all PSU banks will now have non-executive chairman.

PM Modi's biggest challenge to kick-start a slowing economy in his second-term has become even more daunting because of the low investment by the private sector. GDP growth in the fourth quarter of the last fiscal year came down to a five year low of 5.8%, causing concerns among the policy makers. However, weak private investment had remained a challenge throughout PM Modi's first-term(2014-19).