New Delhi: Amid challenges faced by global economy, India will need to balance its aspiration for growth with maintaining macro-economic stability, Kotak Mahindra Bank Managing Director Uday Kotak said Wednesday.
In a message to the shareholders, Kotak said India continues to have a fundamentally sound growth story.
“The core of any strategy lies in its execution, and while taking an unpaved road, one needs to balance enthusiasm with a sense of alertness.
“Given the fluidity of the global economy, geopolitical landscape and inflation, the immediate few months ahead may pose multiple challenges,” he said in the annual report.
India will need to balance its aspiration for growth with maintaining macro-economic stability, he said, adding that the country cannot choose its neighbourhood, which adds to the challenges at hand.
Prudence on the fiscal deficit, current account and monetary policy are key requirements, he said.
According to him, the government’s pledge to promote ease of business and faster implementation of large projects kept India a decent performer amidst tough global conditions.
The efforts made in the past few years started connecting to build an ecosystem led by technology, access and affordability in the rural and urban markets, he said.
“Amidst this resurgence, the global economic impact began weighing in, fuel prices boosting inflation and curtailing access to easy money, affecting spending and investments in some segments of corporate India. The ripple effect of lockdowns in China created supply chain challenges, deferred supplies and chip shortages, the full impact of which will take time to register,” he said.
However, he said, this disruption has indeed brought the need to explore India as a key alternate procurement destination for many sectors worldwide.
Talking about performance of his bank, Kotak said the net profit at consolidated level witnessed a 21 per cent annual growth at Rs 12,089 crore in FY22.
The Return on Assets (ROA) at the consolidated level was 2.36 per cent for FY 2021-22.
As of March 31, 2022, the total assets under management for Kotak Group was more than Rs 3,82,500 crore.
“As a responsible, homegrown ecosystem, we cater to the diversified financial needs of our customers in addition to banking and financing, be it mutual funds, insurance (life and general), investment banking, institutional and retail broking services, investment advisory, alternate assets, et al,” he said.
PTI
