Leo Puri, chairman-south and southeast Asia at JPMorgan, on Monday, said that there is a willingness to look more deeply at India. Puri also said that India will have to attract interest entirely on its own merit.
“India, for a long time actually, regulated sectors like housing, financial sector, education. We (India) have already been regulating these sectors. In China, it’s been perceived as a sudden and abrupt pivot. In the longer run, it will probably bring more stability to China. Again, is there a rush out of China into India? Probably not actually, I think it will be back towards developed markets. India has to attract interest, again, entirely on its own merits. Unfortunately, I think we are getting better at doing that, at this point,” Puri said in an interview to CNBC-TV18.
“It’s not a China versus India story. I don't think that's changed, but certainly, there is a willingness to focus and look more deeply at India today. But again, ultimately, its merits that will determine this and not the simple rotation,” he said.
According to him, service to the banking system is to create an effective resolution mechanism. “The reality of our recovery record as a system, it's anyway, not great. So we are not going to be any worse off than we were before. My personal view is that if we can prove that we have created a new resolution mechanism that is devoid of the quagmire of the four C's (capacity, capital, collateral and credit) and everything else that has happened before, that will be a service to the banking system,” said Puri.
For the entire interview, watch the video