Kotak Mahindra Bank Chief Executive Officer Uday Kotak said on Thursday that with macro factors turning positive, India can “navigate well” the current turmoil in the global financial market and stand out.
India, he said, will benefit from low oil prices on the international market and the country’s current account deficit (CAD) is expected to narrow below 2 percent in 2003-24.
Global markets have been in turmoil for the past week after two banks in the United States went bankrupt.
“Even as global turmoil in financial markets continues, macro factors are improving for India. The current account deficit appears to be below 2.5 percent in FY23 and below 2 percent in FY23. prosecutor 24. Oil crash helps.speak and navigate well, India can excel in this turmoil,” Kotak tweeted.
Signature Bank, New York, which primarily lent to the crypto industry, was shut down by regulators on Sunday after there was a run on its deposits.
Also, the Silicon Valley Bank bankruptcy last week left many start-ups, technology companies, entrepreneurs, and venture capital funds on edge and on edge. SVB, the 16th largest bank in the United States, was shut down last Friday by the California Department of Financial Innovation and Protection, which later named the FDIC as its receiver.
SVB was deeply entrenched in the tech startup ecosystem and was the default bank for many high-flying startups. Its precipitous fall marked one of the biggest bank failures since the 2008 global financial crisis. The bank failed after clients, many of them venture capital firms and venture capital-backed companies the bank had cultivated over the years, of time, they began to withdraw their deposits, which led to a run on the bank.
Chief economic adviser V Anantha Nageswaran said on Thursday that global uncertainty has increased after recent events in the United States and that governments, businesses and individuals should maintain “safety margins” in tax planning, corporate and savings accounts.
He said the International Monetary Fund (IMF) global growth estimates given in January appear outdated, and countries will have to watch how developments in the US over the past week would affect confidence, bank loan growth and subsequent chain effects.
