Thread by @rajivmehta19

1. *Uday Kotak on FT Live today.* *_Key points:*_
2. We are somewhere closer to the Investment cycle
3. Private Investment will go up either in 2022 or early 2023
4. Supply constraints and sustained demand pickup will propel New Investment Cycle
@udaykotak #banknifty

5. We have now greater clarity on how Covid19 will do for the past 15 months and even if it is going to be there for a while, we have now ways to meet with it.
6. India fared much better than countries like NZ, Singapore on dealing with 2.0 wave

7. Credit Pickup will happen because the stressed sectors are already taken care of by emergency measures and PLI measures and other relief measures. So Financial Sector will have brighter days.

8. Shape up or Ship out is the message for banks whether Public or Private. If you are not agile to meet the customer demands, irrespective of the ownership, the Amazons and the Googles will eat us for lunch.

9. The Budgeted Fiscal deficit was 9.5% in the Budget for 21-22 which thankfully due to the frugality of the FM has come to 6.5% now. So there is good firepower building up for the FM to do some spending ahead of the festival season between now and Jan-Feb 2022.

10. Enormous liquidity into the Indian markets is bringing out the discount rate of future cash flows - which will augur well for the Financial Markets.
11. Covid has brought in changes of five years in one year frame.

12. Never take the call of whether market is too high or too low - Go to a good financial advisor - and do not fall int the trap of what your neighbor has done good or better than you - do what is good for you.

13. Lower barriers to entry must also recognize easier exits - Creative disruption is the way of life
14. Corporates and Banks both must be awake to the range of possibilities today in the Debt and Equity markets and the financial instruments they offer.

15. There has to be a return for investors on risk taken - so Bank Recapitalisation is not the answer.
16. Why is @KotakBankLtd able to offer housing loans at 6.5% because Covid has brought about dramatic drop in cost of funds.

Because our CASA ratio is 40%, we are able to give the cheaper rates on the eve of one of the most auspicious festivals tomorrow.
17. Indian Banking System is much stronger today and is also well positioned to stay hedged against the rise in dollar rates of financing.

18. Time has come for banks to revisit how many branches do you need? Digital era should make banks to increase productivity, efficiency and effectiveness of its entire structure. Focus on keeping lid on costs, focus on growth #Kotak