After coronavirus pandemic, there is a change in the nature of consumers, says Uday Kotak

One of the leading private bankers in the country, Uday Kotak, Managing Director & CEO, Kotak Mahindra Bank Limited, on Monday spoke to Zee Business on a number of topics - how the industry will change after coronavirus, how firms will reduce input costs, importance of digital infra in the wake of COVID-19, and steps needed for employment security.

Talking to Zee Business, Uday Kotak said, "Saving people's lives is an important responsibility as there is a sense of fear in people's mind due to COVID 19. Coronavirus has hit the economy very badly, and in unlock 1.0, the government is more focussed on supply. Moreover, the government has to take more steps to increase supply. Also, migrant crisis is a big issue. We need major steps for employment security."

Moreover, Kotak said, "Now, FMCG demand has increased, and we have to focus on supply in unlock 1.0...also, financial help should be given to people of BPL category. After corona, there is a change in the nature of consumers as now they are spending only on the basis of their needs."

Further, Kotak said, "Business strategy needs to be changed. Aviation, hotel and tourism are the three sectors which have been hit the most by corona..business in these sectors is challenging. The trades which have more input costs will face more problems."

Talking about the banking sector, Kotak said, "Banking sector needs capital of around Rs 4 lakh to Rs 5 lakh crores. Government has to infuse more capital in PSU banks...funds should be gathered from private banks and NBFCs."

Speaking about loan moratorium, Kotak said, "Interest waiver on the 6 months loan moratorium will increase problems. Government and the Supreme Court should resolve this together. Interest waiver will increase problems in the financial sector."

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Recently, Uday Kotak sold 2.83 per cent of the promoter group's holding in the private sector lender Kotak Mahindra Bank for Rs 6,944 crore. The deal came within days of the bank raising over Rs 7,400 crore through a qualified institutional placement (QIP) of shares over the weekend. The promoter holding in the bank had come down a tad over 1 per cent from 29.8 per cent after the QIP issue.

Also, the Confederation of Indian Industry (CII) had announced its new office-bearers for the year 2020-21. Uday Kotak has assumed office as the President of CII for 2020-21. He takes over from Vikram Kirloskar, Chairman and Managing Director of Kirloskar Systems Ltd., and Vice Chairman of Toyota Kirloskar Motor.