The non-banking financial companies (NBFC) sector as a whole is going through a challenging time, said Nilesh Shah, managing director of Kotak Mahindra AMC on Tuesday, adding that most of these firms are "cutting down on growth in order to remain afloat."
"Unless and until we improve the transmission by recapitalising public sector undertaking (PSU) banks, by introducing appropriate governance structure in PSU banks... we won’t be able to see robust growth,” said Shah in an interview with CNBC-TV18.
On the automobile sector, Shah said, “Auto sector is 49 percent of India’s manufacturing gross domestic product (GDP), you cannot afford to let that sector go down. So there will be corrective steps taken.”
"With more availability of finance, with BS-VI norms behind and some corrective steps taken by the government for automobile sector, we could see auto stocks reviving," he added.
On monsoon and its effect on agriculture, he said, “Monsoon has been progressing well in July though it was not so good in June. If monsoon rains are as good in the rest of July and August, like it is in the first half of July, then we will see agriculture recovery. So if oil and monsoon support the Indian economy and the steps taken by the government start getting fructifying, then I will see the second half in a far better shape compared to the first half."