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Last Updated : Jun 25, 2019 08:52 AM IST | Source: CNBC-TV18

Govt should fix banks; NBFCs won't support economy: Andrew Holland

He added that the auto sector is likely to get a boost from the government's plans to kick-start the economy in the Union Budget.

CNBC TV18 @moneycontrolcom

The government needs to fix the banking sector, specifically public sector banks, in order to make India a $5 trillion economy, Andrew Holland, chief executive officer of Avendus Capital Alternate Strategies said.

This is because the nation's non-banking financial companies are not enough to support the economy, he felt.

He added that the auto sector is likely to get a boost from the government's plans to kick-start the economy in the Union Budget. "We are at that point now where everyone is throwing in the towel, so it is probably a sector I am looking at more now because of its value. I am not saying it is time to buy straightaway but I think it is a relook at some of the companies," he stated.

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He added the government will continue its infrastructure spend despite the talks of slippages and fiscal deficits, which, according to him, are not that bad. "If we get the confidence back into the private sector that is where you will see the private capex turn up. I still think that is on the cards for the second half of the year. Capital goods sector is a sector which we have been looking at, like and think will do well over the next year,” Holland said.

On the US market, Holland said the market already expects a 50 bps cut in July from the US Federal Reserve, and, as European Central Bank President Mario Draghi said, 'all the central banks are going to reduce rates, and it is going to be more significant in the US'.

"It is an opportunity for India, with the trade wars to attract more capital. So if you do some of the right policies and ease doing business in India then I am sure we can attract more capital going forward," he said.

 

Source: CNBC-TV18

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First Published on Jun 24, 2019 05:21 pm
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