Need to channel domestic savings into equity markets: Uday Kotak

Confederation of Indian Industry (CII) President and veteran banker Uday Kotak on March 10 called for channelling domestic savings into equities and the capital markets to reduce dependence on foreign funds.

“If you look at India’s saving rate, it has been declining in recent times, but it is still a pretty high savings rate. What is happening is that the bulk of the Indian savings, traditionally, have been risk-averse and a lot of that has been in more traditional sources and the amount of money and savings that has gone into equity risk have been relatively lower,” Kotak, the chief executive of Kotak Mahindra Bank, said at an event organised by the industry body.

Kotak welcomed foreign funds but said, “we cannot depend on foreign capital for our destiny”.

He, however, cautioned that promoting the equity culture must happen improved governance in corporates.