Talking of Interest rates - Indian middle class would do well to remember the contribution of two unsung heroes of that move- NN Vaghul & KV Kamath; latter single handedly demolished the carefully crafted high interest regime mastered by likes of Deepak Parekhs/ Keki Dadiseths!
Ofcourse ABV Govt policies made that happen but fact remains that but for that assault on high interest regime by Kamath led ICICI, cars and houses would have remained a distant dream for middle class. HDFC used to charge upwards of 22% on home loans
https://twitter.com/alok_bhatt/status/1377472718514216961
Guess what, check net worth of Deepak Parekh and Keki and compare it with that of Kamath - you would know who reaped biggest benefit of this expansion of growth. But fact remains that Kamath is an unsung hero of Indian Middle Class for whatever he did in mid 90s and early 2000s
HDFC and so many others used to borrow at 18% from market by paying almost 3-5% to middlemen and housing loan rates used to be in low 20s - that was India dominated by then HDFC. Entered ICICI and everything changed within few years- cars and home loan rates came down!
My friend @Rakeshdun helped his employer raised several crores of such FDs from Dehradun in early and mid 90s. Later did same for Alpic (reverse of CIPLA). But as I said, an aggressive Kamath changed the game forever- ABV regime played an ally & that was the start of #IndiaStory
Point I am trying to make by way of this thread is that if you really want #IndiaStory to become stronger n stronger, middle class will have to learn from history. They have been the biggest beneficiary of low interest regime and would reap more- should interest rate head south!
https://twitter.com/alok_bhatt/status/1377437597102841857
Simultaneous low interest rates on borrowings & high interest rates on deposits;low inflation,higher asset prices,high growth & favourable exchange rate regime DID NOT even exist in Michael Moore’s Utopia- you need to strike a balance between all & high deposit rates r no no!
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