New RBI bank norms a positive: KV Kamath, ICICI Bank

In a chat with ET Now, KV Kamath, Chairman, ICICI Bank, shares his views on RBI’s new norms on small and payment banks. Excerpts:



ET Now: What are your views on RBI’s new norms on small and payment banks?

KV Kamath: Anything that deepens the distribution model is hugely progressive because that includes everything in its way. Going back to 2007-2008, these norms were part of the Raghuram Rajan Committee on financial sector reforms.

ET Now: What flexibility do you think the norms provide to telcos like Bharti and Vodafone? What kind of synergies do you think can put in place?

KV Kamath: We will have to figure that out along the way. It hugely depends on one’s core business and how one does it. I am sure banks will also figure out the platforms that they can operate on. Ultimately, a collaborative way will have to be established to succeed in this space.

ET Now: Do you think the norms are conducive enough to propel several JVs between banks and promoters from the non-banking industry?

KV Kamath: Yes, they are conducive enough. It will now depend on whether people want or not and we will need to see. Firstly, we should let people digest the whole thing.

ET Now: The RBI policy is around the corner. Your hopes as far as the interest rate scenario is concerned?

KV Kamath: I never speculate on interest rates and I would not speculate now.

ET Now: Do you think the GDP growth, as it stands as of now, can be maintained?

KV Kamath: It has to go up. It only remains to be seen as to how it does. We are all aspiring for 8%.

ET Now: How optimistic are you of the Modi government reviving the entire investment climate?

KV Kamath: They have already taken the requisite steps. It is only a question of time now.