NDTV Profit Conclave: Leaders Outline Vision For Viksit Bharat 2047— Check Highlights

Fintechs are able to grow as they focus on technology, niche, said Ashok Vaswani, MD and CEO, Kotak Mahindra Bank. "Banks versus fintechs is not a right comparison as both need each other," he said.

Vaswani noted that the best outcome is when banks and fintechs partner. "Banks will step up their game with more investments in technology," he said.

Banks will have to come up with innovative products to attract customers, according to Kotak Mahindra Bank MD and CEO Ashok Vaswani. "Banks need to be sharp in identifying who, what is your target market," he said.

Vaswani highlighted that, consumer spending driving Indian economy plays a larger role. "At a macro level, consumer spending has been driving developed economies," he said.

"Credit extension to salaried class was done aggressively. Overextension of credit led to over leveraging, " he shared.

Vaswani noted that we are seeing a lot of pain in microfinance space, but banks picked up on this quickly. "Steam in personal loans will come back," he said.

Private sector capex has not been restricted by the availability of bank financing, according to Kotak Mahindra Bank MD and CEO Ashok Vaswani.

"IPO fever in the markets has been scary," he said. The Kotak Mahindra Bank MD further said that, "I am excited to see the startup space in India."

"Technology is changing the world and not restricted to banking. It is too important to be left just to technologists," he said. "Banks have to adopt a mindset of change in terms of technology," Vaswani noted.

Banking industry normally grows around 7-7.5x the GDP, said Ashok Vaswani, MD and CEO, Kotak Mahindra Bank. "Interest rates come lower in a developed market," he said.

Vaswani highlighted that different countries have evolved differently as far as mortgages are concerned. "Balance sheets of the banks have to change as economy develops," he said.

"Internationalisation is an important element," Vaswani shared. "Regulator has done a commendable job in terms of internationalisation of markets," he said.

Banking has to develop with the economy, said Ashok Vaswani, MD and CEO, Kotak Mahindra Bank.