Kotak Mahindra sees growth from semi-urban, rural biz

Kotak Mahindra Bank expects loan demand from semi-urban and rural areas to boost business in this fiscal year, while credit growth for the sector could be lower than the central bank's projection of 18%, a top official said.

"I think the next big challenge for Indian banks is really how well they manage the credit cycle," Managing Director Uday Kotak said.

"I do believe the credit demand in India, which has grown at about 20%-plus last year, ...coming to about 15 percent this year."

Kotak Mahindra is cautious about lending to sectors such as infrastructure, airlines, telecoms, as well as project finance business because of higher risks.

Source: Business Standard