Sanjeev Bajaj, President of Confederation of Indian Industry and CMD of Bajaj Finserv. file | Photo credit: The Hindu
According to Sanjeev Bajaj, President, Confederation of Indian Industry and CMD, Bajaj Finserv, the RBI’s strict supervision and monitoring is helping to keep Indian banks healthy.
“Our own growth as an economy may be affected if external factors worsen, but our banking system is solid and stable,” he said. global financial crisis.
,[Even] Now, Indian banks are very healthy with strict supervision and monitoring by the central bank and this is a show of strength for our economy at this time,” he said in response to questions about the shuttering of some banks in the US and the financial crisis. . Europe.
Mr Bajaj, who was speaking at a summit on the sidelines of the CII-SR annual regional meeting in Hyderabad on March 17, said the recent developments abroad are unlikely to impact credit availability in the country. “As an economy, India is growing at 7% [and] Credit availability is not a problem for good companies, be it start-ups or otherwise. This may be an issue overseas right now. But these are small or for a short period of time. After all, there is enough capital available globally for good ideas and good businesses.
He cautioned against rushing traditional institutions like old banks and insurance companies to invest in fintech start-ups as their “valuations don’t make sense” at times. The latest crisis is a case of the difference between need and greed.
“Unfortunately, like everyone else, the banking system tends to be greedy…the strength of banks should be prime, as they are integral to providing support to any economy,” he said, adding that how banks should be used for growth or development. The risks must be taken into account before looking at growth. Return.
Asked about RBI raising benchmark rates, he said that in the last three years there was a need for coordination among central banks across the world, but that period is probably over now. Each country faces its own opportunities and challenges. With growth in India today at a reasonable rate “we now have to look at what is needed to support our economy and believe in this context that it is time for the central bank to stop the interest rate cycle.”
Going forward, India must not just produce what someone else has done, but switch to innovation for the world, Mr Bajaj said at the summit on ‘South India@100: Going beyond boundaries’. Among those who addressed the session were CII-SR Chairperson Suchitra K. Ella, Director General of CII Chandrajit Banerjee.
