Concept of banking undergoing cathartic changes: Uday Kotak

The Indian banking sector is witnessing a wave of changes as everything from business model to operation is reorienting in consonance with digital business environment, Kotak Mahindra Bank Managing Director Uday Kotak said. 

Speaking at the Columbia Indian Economy Summit, Kotak said that the concept of banking is undergoing a cathartic change today. "We sleep thinking at night whether (traditional) banks will be there tomorrow or not," he said. 

Speaking on privatisation of banks, the veteran banker said, "In 2022-2023, I am hopeful that bank privatisation bill will be passed and a few banks will also be privatised in this financial year." He said that the government has already made it clear that it wants to have 4-5 public sector banks in the country.

The availability of capital and access to capital has improved for entrepreneurs in the country, Kotak said at the Summit, organised by Columbia SIPA. The session was moderated by economist and former vice chairman of NITI Aayog Arvind Panagariya.

On the issue of crony capitalism, Kotak said India is witnessing a disproportionate growth of large corporates, while some corporates are becoming smaller. "We have to choose whether this is the business model of the banks we want to have," he added.

The Columbia Indian Economy Summit, which will go on for three days, will bring together academics, business leaders and policy makers to discuss Indian economic policies, reforms and their impact. 

It will capture some crucial issues, including overall macro and growth prospects, health policy, evaluation of India's new bankruptcy law, role of industrial parks in development, India's digital economy, financial sector, free trade agreements and trade policy, privatisation of banks, among others.

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