Veteran banker Uday Kotak says there will be pockets of significant fragility and pain in the financial sector. Speaking to Shereen Bhan on the same, he adds that the sector is going through structural changes and there may be significant consolidation going ahead.
Kotak further said that residential real estate is still a significant challenge.
“Watch out for retail consumer financing unsecured which will create challenges in 12 to 24 months,” he added.
Talking about elections, he said, “People are getting too concerned about elections. Market do not need to be so worried about elections. We must look through this as a part of a 5 year cycle and short-term interest rates will be softer, longer term will depend on how well we handle our fiscal and price of oil.”
Uday Kotak expects government's policy moves post May to lead growth up from 7-8% in the next 5 years. He believes the market is currently trying to figure out the nature of the new government.