Godrej group chairman Adi Godrej, while hailing the passage of the Banking Bill in the Lok Sabha, explains to CNBC-TV18 that the Bill will address the need for more facilities in the banking sector as it will hasten the speed with which the economy picks up and aid the expansion of the financial services sector.
He clarified that the Godrej group was not keen on getting a bank licence. However, Godrej is not optimistic as expected regarding the government’s enthusiasm to push reforms in Parliament and adds that all the bills that could have been passed in this session, were not acted upon and some bills still remain.
Below is the edited transcript of Adi Godrej’s interview with CNBC-TV18.
Q: The Banking bill has been cleared by the Lok Sabha. So, is the reform agenda continuing?
A: It is refreshing to see that the parliament has taken up and passed several of the pending points of legislation. It is very good to hear that the banking bill has been passed today. We need more facilities in terms of banking in the country. This will allow both international banks and Indian banks to operate in a stronger manner. As the economy picks up, the financial services sector needs to expand widely.
Q: Corporates are now allowed to apply or seek a bank licence. Would you be interested at all in this space?
A: No. We will let others get into banking. I am sure many people would like to and many people who are not fully banks yet would like to become banks. There are many people internationally also who would like to get into the sector. As Godrej group, we wouldn’t go into banking.
Q: Other crucial bills like the pension and insurance bills are now going to be taken up only in the next session of parliament and the government has also accepted the oppositions demand to take up the land acquisition bill in the next session of parliament. Do you see that as being a significant dampener?
A: No, not really because not all the bills could have been passed in this session, some bills remain. What I find very good is that the parliament is working overtime, parliament is taking legislation, passing things quickly and not belabouring things very much.