Budget 2019 | Nirmala Sitharaman has delivered a strong Budget, focus should now shift to execution: Sanjiv Bajaj

Sanjiv Bajaj, Managing Director of Bajaj Finance, feels this is a strong Union Budget and the focus should now shift to execution.

In an interview with Moneycontrol, he gave his views on Nirmala Sitharaman's maiden Budget.

Q. What are the key points of this Budget and how would you rate it?

A. This is a Budget that has touched upon all points, starting from infrastructure, startups, rural economy to MSMEs, connectivity issue and education. So we all know that the idea is there and so is intent. Now focus should be on execution.

Q. Government has proposed an increase in minimum public shareholding from 25 percent to 35 percent. What is your view on this? 

A. We require more clarity on minimum public shareholding norms.

Q.  Modi government has outlined its views on FDI? What are your thoughts?

A. The government is clearly saying that they will discuss with stakeholders before further relaxing place for foreign direct investment in an insurance. I think there are lessons to be learnt from what happened when insurance were opened from 26 percent to 49 percent. I don't think substantial capital came in not for any other reason it was not required. Industry is sufficiently capitalised and also growing healthy.

Q. Banks were expecting around Rs 40,000 to Rs 50,000 crore in re-capitalisation but they are getting Rs 70,000 crore. What do you make of this move?

A. It is not just a question of infusing Rs 70,000 crore. The important point is how that money is utilised. FM Nirmala Sitharaman talked about consolidation and we will see more consolidation going forward. But it is important to give public sector banks more freedom and autonomy.

Q. After the recent turmoil in housing finance companies, government will be asking Reserve Bank of India to regulate them. What are your views?

A. It is the step in right direction. RBI is a mature and experienced regulator and will provide right supervision to the housing finance sector.