From the sidelines of the CII Services Conclave – ‘Serve India and the world,’ Uday Kotak, Executive Vice Chairman and MD, Kotak Mahindra Bank said there are early signs of growth in the economy and most certainly seen in the banking sector with the expectation of loan growth picking up.
However, as the economy on a micro basis begins to grow the big challenge will be to keep the macro factors reasonably under control, he said.
“Quite bullish on micro growth while macro is less benign than before,” he said.
According to him, FY18 GDP growth is expected to be around 6.5 to 6.7 percent, which means second half (H2) will growth at 7 percent plus. However, one must keep in mind that we are starting on a low base because last year’s H2 was slower, said Kotak.
Executive Vice-Chairman & MD|Kotak Mahindra Bank
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India on a sustainable basis needs to grow faster, he said.
Talking on the market per se, he said although markets have been on a role for the last few days and weeks, on a more fundamental basis, Indian equity markets need to keep an eye on bond markets, what is happening to interest rates, the Budget and the levels of fiscal deficit.
When asked what would be his three priorities from the Budget, he said one is keep the fiscal discipline, it should not exceed 3.5 percent. Two, would be to get goods and services tax (GST) to work smoothly and three is centralisation of service tax is needed, he said.
According to him, 60 percent of the economy has got decentralised.