New Delhi: Uday Kotak MD & CEO of Kotak Bank said this year will definitely turns bad for the bankers, the impact of COVID may hit around 40 per cent of the banks’ capital.
Kotak said, the financial sector will need recapitalisation despite some profits from bond valuations. In the annual letter to shareholder he said the financial sector will end up bearing the costs of Covid that cannot be borne by business or the government. “The banking sector’s loan book is around Rs 100 lakh crore and the total capital of all banks is Rs 11-12 lakh crore. So, if 4-5 percent of the loan turn bad, the capital position would get impacted by around 40 percent.
He added, that the government and industry should take a leaf out of the capital markets and not worry too much about the current fiscal year but plan and work towards a medium-term growth strategy.
Posted Date : 11-07-20
Categories : BANK NEWS