Uday Kotak, the Kotak Mahindra Bank founder, voiced for corporates to shift away from banks as part of helping India achieve dreams of 9% annual growth and becoming a $30 trillion GDP by 2047. Highlighting the shift from savers to investors, he emphasised challenges in banking, urging large corporates to shift to capital markets. He warned against Japan s economic history and stresses policies to avoid market bubbles. Kotak s focus lies in transforming banks into debt distributors and maintaining a balanced financial sector view to ensure stability.
Unlike previous episodes of sudden stops and reversals, the recent volume of outflows is much higher, and could accentuate financial vulnerabilities while worsening overall macroeconomic instability.