India has moved a long way from the traditional banking model of saver and borrower to the market model of issuer and investor.
However, Uday Kotak Managing Director & CEO, Kotak Mahindra Bank Ltd, believes that these two models co-exist in India and there is a need to have a holistic view in policymaking to ensure challenges are effectively dealt with.
He was speaking at the CII Financial Market Summit 2019. The theme of the event was 'India @ 2024: $5 trillion economy and Indian Financial Markets'.
"Of the three key areas we are currently dealing with, the combination of saver-borrower, issuer-investor model is one. Second is the challenge to manage the objectives of the nation state of 1.33 billion people and challenges of free markets. Third is broader financial sector holistic view, which builds policy for a sector as a whole. Both entry and exit should be done with controlled disruption because the multiplier effects of exit not handled is significantly higher," Kotak said.
Kotak said growth has to happen in real world and the financial sector neds to act as a key catalyst.
"Markets need competition and there is an essential need to ensure exits in a controlled and disruptive way," he said.
He concluded his speech by saying mortality is a way of life in markets too and policy frameworks have to be geared up for that.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.