Chanda Kochhar, MD and CEO of ICICI Bank stressed on the need to ensure that the projects under implementation get the necessary last mile clearances and linkages so that the assets become productive on schedule.
She said this to a leading news agency when asked about banks’ exposure to large infrastructure and industrial projects.
She further remarked that the companies’ debt leverage would appear high only until the investments are completed and start generating cash-flows. As the cash flows from the projects start, the debt levels will be sustainable and should moderate over time, she added.
Speaking about the outlook for India’s banking sector, she said the Indian financial sector has tremendous growth opportunities over the next few years.
Besides, she added, there will be great opportunities in the economy and its global linkages through Indian companies’ overseas expansion activities.
According to her, the banking sector must expand at least 2.5 to 3 times the GDP growth rate, and the improvement in the GDP growth rate will drive growth in the banking sector.
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