India’s finances in Darwinian mode: Uday Kotak

The MD and CEO of Kotak Mahindra Bank added that historically, whenever there has been a problem with a private sector lender, it has been merged with a state-run bank. “India is in massive Darwinian mode of what I call as the survival of the fittest.

“Sector after sector has seen that it is going to be more consolidated than ever before. Consolidation in the Indian economy is happening more out of mortality and less out of combinations,” Kotak said.

The Centre has to “rework” the Financial Resolution Deposit Insurance (FRDI) Bill since an exit route is essential for troubled lenders.

FRDI Bill, which had raised concerns over protection for depositors, has lapsed and the Centre is yet to introduce a new bill.

“As you are allowing entry in banking, we should be thinking more about exit policy. And one of the earlier bill that was planned earlier was the FRDI Bill. We need to rework on that,” Kotak said.