The non-banking financial companies (NBFC) sector as a whole is going through a challenging time, said Nilesh Shah, managing director of Kotak Mahindra AMC on July 16, adding that most of these firms are "cutting down on growth in order to remain afloat."
"Unless and until we improve the transmission by recapitalising public sector undertaking (PSU) banks, by introducing appropriate governance structure in PSU banks... we won’t be able to see robust growth,” said Shah in an interview with CNBC-TV18.
On the automobile sector, Shah said, "Auto sector is 49 percent of India’s manufacturing gross domestic product (GDP), you cannot afford to let that sector go down. So there will be corrective steps taken."
"With the greater availability of finance, BS-VI norms behind and some corrective steps taken by the government for the automobile sector, we could see auto stocks reviving," he added.
On the monsoons and its effect on agriculture, he said, "The monsoons has been progressing well in July, though it was not the case in June. If the monsoon rains are as good in the rest of July and August as they were in the first half of July, then we will see a recovery taking place in agriculture. So if oil and the monsoons support the Indian economy, and the steps taken by the government start to fructify, then I will see the second half in a far better shape compared to the first half."