Kotak Bank CEO explains why banking sector is approaching a greater consolidation

Kotak Bank CEO Uday Kotak told the financial sector would be heading for the more consolidation and so also pitched for a uniform framework for the banks which irrespective of the control and so also ownership on Thursday as well. “I think the financial sector is heading for the greater consolidation that given the asset risk and also the capital would become critical,” as he told in a discussion with G Padmanabhan, the Non-Executive Chairman, Bank of India, which at the Global Fintech Fest. The Kotak, who is the Managing Director and also the CEO, pf Kotak Mahindra Bank, also been stressed that policy of the supervision, the regulation, and also the governance which have to be ownership neutral and so also be the same for both the public sector and even private banks as well. He further told that in the case there are any challenges on how the govt and also the regulator is thinking in the Covid-19 pandemic situation era.

They could find a way of working together and also come up with a financial sector for the framework that applies to all the banks.

It is quietly Noted that the core of the banking is ideally the protection of the depositors’ money, as he simply told that if based upon an actual governance framework, the boards, then the shareholders and also the specific managements protect the interest of the equity owners; and they clearly would be the 1st that to be protecting the interest of the depositor’s money as well. However, about the fintech players, he told that he would look at the investment opportunities in the sector as well.

He told that banks and fintech would continue that proceed to compete and also collaborate in various areas as well. Additionally, the big differentiator would be a risk and also risk management. “Risk management will remain with banks,” as he stressed as well.

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