"After the IL&FS episode, 'inter-connected exposures' is a concern for markets," said Kotak.
Veteran banker Uday Kotak in an interview with CNBC-TV18 said the current financial situation is fragile but it may not be a systemic problem if well handled. The fear factor will remain until balance sheets of companies become trustworthy, he added.
The Managing Director and CEO of Kotak Mahindra Bank talking about various sectors also said, "I think at this point of time, my personal view is that the small and mid-cap sector has already seen a lot of the pain. The pain from here may not be anywhere near the pain that people have seen in 2018. Therefore, I do believe that small caps and mid-caps have adjusted more compared to what we have seen in large caps in general."
"I think there has been a flight to safety, lot more money has moved into larger cap and fewer number of stocks in terms of the marketplace. A lot of money have moved into large-caps. My concern at this point of time continues to be in the residential real estate space, which I think is still facing its pressures," said Kotak.