Uday Kotak, chief executive of Kotak Mahindra Bank feels that the time has come for getting investments back. Describing the global investors' behavior towards India, the billionaire banker in an interview with The Economic Times said that India is a cleaner white shirt in a dirty shirt world.
“We are seeing people still cautious on the investment cycle. And we are still too much driven by consumption as the core of our economy. I think the time has come for getting investments back. We did a survey with some of our corporate and SME customers. We found two-thirds of them having capacity utilisation now about 80 percent but only 15 percent of the total wanted to do capex,” Kotak told ET.
When talking about the banking sector’s condition post the asset quality review in 2015, Kotak said that it is a 'Cinderella time' for the sector.
“We are in what I call a Cinderella time. This is the sweetest credit cycle I have seen for the last many years. And for all the fears of Covid when massive pumping of money happened, the credit cost post-Covid has been very benign. So, we are in a sweet spot. The question is what time of the day is it in Cinderella time? I still think it is afternoon, early evening. So now midnight is far. But, at some point of time, the clock does strike midnight. So we need to be prepared for that. I think this is a good time to underwrite well and grow the economy,” Kotak said.
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