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Non-performing assets and the controversy surrounding the loans made by Indian banks to Vijay Mallya's Kingfisher Airlines have shown the Indian banking sector in negative light. Uday Kotak, MD of Kotak Mahindra Bank is in conversation with BOOM Founder-Editor Govindraj Ethiraj on the current RBI policy, Indian economy and more.
Uday Kotak, Managing Director of Kotak Mahindra Bank feels that India is surrounded by positive macro economic variables presently. The challenge for India now is to fix the micro economic factors. A revamp in the mindset of Indian entrepreneurs is the need of the hour. It is crucial for them to start investing now for a fruitful tomorrow.
Uday Kotak pointed out excessive leverage in infrastructure as a major micro problem. India can't afford to get complacent during good times. He says that RBI can take credit for the amazing policies that has helped in recovering financial assets. Kotak also regards a bank's balance sheet as the most important indicator of an establishment's health. He stresses that issues must be addressed head on, without any time lag.
Uday Kotak said that he was looking forward to seeing the response of the banking sector to lower int rates and better liquidity over the year.
On the RBI policy front, Kotak expects one more rate cut this year.