Shanti Ekambaram, Dy MD, Kotak Mahindra Bank, says for me, financial independence, financial literacy, financial planning, and actually being involved in the nuances of financial life or ecosystem is very important and that is the message I want to give all women. I have seen a sea change in the last decade. Women, apart from being financially independent, have also started understanding financial literacy and financial investment, but we have a long way to go.”
Our theme this year is to inspire inclusivity. What does inclusivity mean for you and what are you doing at Kotak Mahindra Bank to ensure inclusive growth.
Shanti Ekambaram: It is very topical given that tomorrow is International Women’s Day. At Kotak, we have always worked on the theme of diversity for more than about a decade now, even before it became an affirmative action at the corporate level and at the policy level. What is important about inspiring inclusivity is really first the culture. The environment has to be conducive to the fact that diversity is important, balance is important and people are sensitive as well as believe in it.
So, our first thing is really to work on the people, mindset, flow and ensure that we make sure that the diversity quotient goes up. Second, it is very important to support our women as they go through their life. We have created some path-breaking policies for the new mother, including allowances till the child is a certain age, day care services which we offer both to the father and the mother to single parents, flexibility in working hours which I think a lot of organisations offer.
Tie-up after 7:30 for women to work late, specifically with full security and controls, etc. So, a number of women oriented policies have been crafted to ensure that we create this culture of inclusivity and sensitivity. In addition to that, learning, career prospects, equality, parity, leadership inputs, creating circles of support whenever the woman needs is something that we have worked on. There are still lots of work to do, but this is a journey and when we look anywhere in the world or in India, most organisations are grappling with this. It is just that different people are at different points in the journey.I want you to send out a message to all the women. I think the first step begins with financial independence. How critical is it for women today to make their own money? Shanti Ekambaram: It is extremely important. Financial independence has three parts to it. First, be financially independent which means you can work in an office, you can be an entrepreneur, you can provide services, but earn money.
Second, understand and get into the details of what you can do with your money. Wealth is created not by just earning, but what you can do with the money. Most women prefer to sort of leave it to their father, husband, brother, son, whatever. But I think the joy is in really understanding the nuances of financial investment and planning and actually investing your money. Thereafter, keep learning and watch the joy of risk management, how to balance a portfolio, how to grow your wealth? So, for me, all of these – financial independence, financial literacy, financial planning, and actually being involved in the nuances of financial life or ecosystem is very important and that is the message I want to give all women. I have seen a sea change in the last decade. I think women, apart from being financially independent, have also started understanding financial literacy and financial investment, but we have a long way to go.
The Reserve Bank Governor spoke to ET Now on a plethora of topics and talked about how the elephant in the room, which is inflation, has really gone for a walk, but can return any time and he was very confident when it came to the overall growth trajectory as well of the country, likening it to a Tejas train. How are you looking at the overall inflation dynamic in the country and how you are seeing the GDP growth and where we are placed.
Shanti Ekambaram: I will start with growth and move to inflation. The last growth percentages which were announced took everybody by surprise. We have been very clear that the economy has been on an uptrend and I really must compliment the Reserve Bank of India and of course the government for ensuring an environment and providing sufficient liquidity to make sure growth happens.
We have seen growth being consistent. It started with urban consumption and massive urban consumption post COVID. It has now moved to where you have seen consumption has stable and while services are still very buoyant and you have begun to see the beginning of an investment cycle. Government was doing most of the spending, but I think you are beginning to see the effects of private investment capex which has just about started.
So, the economy is on a good track, on a good keel, and the growth seems very strong as we get into FY25. The one area which was a little weak was the rural part of it, but we are beginning to see a little bit of signs of it. The challenge really is the impact of climate uncertainty and the variability that you have been seeing over the last 18 months and that is what leads me straight into inflation.
If you look at core inflation, if you look at some of the main tenets of inflation, they have been steadily coming down, but food inflation is the one that is playing the variability game and that depends on climate entirely, whether it is drought, floods, and a delayed monsoon or whatever. So, I think inflation has been coming down steadily. It seems pretty much under control. The policies that were laid out are more or less working into the system, but the uncertainties are two-three. One, geopolitical tensions that can impact the trade and thus we are still dependent on oil as far as importing inflation is concerned. Second, food inflation, which is really dependent upon the cycles of weather and whether there is likely to be any impact and continuing stable environment. So, I think we are pretty much on a descending path. Some upside risks could come, but I think the central bank is watching it like a hawk, acting ahead of time, being very proactive, so I am very hopeful that we will get to (4:34).
Of course, the governor has been very proactive and so has the RBI, but just to put it in context, Mr Uday Kotak recently said that too much regulatory guardrails could impede growth rate and there has recent issues about the active supervision that the RBI has been doing. What is your view in terms of the level of supervision and the active vigilance that RBI has been keeping on the financial sector?
Shanti Ekambaram: One must realise that the financial sector is very deeply and closely linked into the real sector. The real sector has been seeing a growth and stability that we have never seen before. So, from its perspective, the regulator is actually being proactive rather than reactive which was historically the case and that must be appreciated and recognised.
Let us take two-three things. The first is really the call out on the unsecured loans. The central bank was seeing that various segments, banks, NBFCs, digital players, etc, were heating up and the idea of increasing capital on these loans or otherwise is to just say, guys, it is going too far, put additional capital, be aware of the risks so that the system does not get into stress.
It is all very different from in the past when the system would get into stress and then you would step in. Similarly, some of the corporate actions that have been taken. It really has to do with deficiencies or identity, deficiencies of customer issues, as well as deficiencies in the whole governance process. The regulator is more proactive, is acting ahead of time, and we have to be in step with regulation. It is very important to have balanced regulation, but it is just proactive steps.
