Qualified Institutional Placement<\/a> (QIP) in May. <\/p>\n“This additional capital will support the bank in dealing with contingencies or financing business opportunities (organic and \/ or inorganic),” he said. <\/p>\n
Kotak also said the government has announced a set of reform oriented and supply side packages and the Reserve Bank has been proactive with its actions. <\/p>\n
Considering the stimulus measures announced so far, he said India’s consolidated Centre plus state fiscal deficit could reach 11-12% of GDP. <\/p>\n
“One question that foxes everyone is why the capital markets are buoyant globally even as we see a slowdown across geographies. First, there has been a significant monetary expansion by central banks worldwide,” he said. <\/p>\n
Besides, investors and analysts have already discounted earnings downside for FY21 and are looking at earnings of FY22 and FY23. <\/p>\n
“Similarly, I believe the government and industry should not worry too much about the current fiscal year’s slowdown and instead plan and work towards a medium-term growth strategy,” he said. <\/p>\n
Talking about the performance of the bank, Kotak said its “strong and trusted deposit franchise is one of our most prized assets. As on March 31, 2020, savings deposits crossed Rs 1 lakh crore, growing by 21 per cent on a year-on-year (YoY) basis.” <\/p>\n
The bank ended the year with total advances just short of Rs 2.2 lakh crore, about 7% rise on a year-on-year basis, he added.<\/p>\n<\/div>\n