The next six months are crucial for the financial sector, Kotak, the executive vice-chairman of Kotak Mahindra Bank said, adding the fear this time is the financial sector impacting both itself as well as the real sector.
While the Bombay High Court has “no time” to address the case before 2020, market experts have strong opinions about Kotak’s defiance against the RBI.
The video encompasses a wide spectra of people – from grocery shopkeepers and owners of lunch homes to budding entrepreneurs and industry stalwarts.
Kotak said time has come to bridge the gap by breaking the ground consistently so to have a situation where everyone gets a better balance between the principles and the rules.
The vice chairman and managing director of Kotak Mahindra Bank also said that it may look at a further reduction in MCLR.
IL&FS Chairman Uday Kotak, who was roped in to put the troubled firm back on track, is presenting a status report on where the company stands after six months.
The gloves are off in the ongoing dispute over promoter shareholding between KMB and RBI in the Bombay High Court.
The court turned down the bank's plea for an interim protection from regulatory action saying the matter is not as simple as the petitioner is making it out to be, and posted the matter for further hearing to April 1.
Animal spirits in the corporate sector are low and corporate earnings for the December quarter have been nothing to write home about
"If a Google or a Facebook ever decided to be a bank, we have a problem...They don't want to be as regulated as we are," Kotak, who heads Kotak Mahindra Bank said while speaking at the annual Nasscom leadership summit here on Wednesday.
The experience over the past 12-18 months shows that investor engagement has reached a new high for Indian companies.
Kotak also said India needs a long-term solution to woes of public sector banks.
"After the IL&FS episode, 'inter-connected exposures' is a concern for markets," said Kotak.
This time around, IBA may apply only for Amber companies of IL&FS after a meeting with the Secretary of the Ministry of Corporate Affairs and new Uday Kotak-led board on January 22
The current battle between the Reserve Bank of India and Kotak Mahindra Bank with respect to Uday Kotak’s ownership levels have raised many questions.
Finance Minister Arun Jaitley said India can't have a real rate of interest that's higher than anywhere else in the world
In response to the writ petition filed by Kotak Mahindra Bank (KMB), the Bombay High Court has refused to stay the December 31 deadline for promoter stake dilution.
This means that the bank will have to reduce promoter stake by 10 percent in the next 15 days or risk facing action from the RBI.
The lender had been asked by the RBI in August to dilute Kotak's stake in it to below 20% by December 31, following which it conducted a sale of perpetual non-convertible preference shares
"If you are taking out Rs 500 and Rs 1,000 notes, why would you introduce Rs 2,000 notes? " Uday Kotak asked.
The new board had taken charge after NCLT approved a resolution of the liquidity crisis at IL&FS given its huge debt of Rs 91,000 crore.
"The role of management is to run and execute and come out with a whole business strategy and everything else. The role of board is to challenge it and govern it," he said.
Some investors on condition of anonymity said the RBI should push for fresh issuance of shares by banks to meet licensing guidelines.
The RBI board announced plans to set up a committee to examine the economic capital framework (ECF) of RBI.
Thanks to the cash crunch in IL&FS the rot in the company is now getting exposed