May 13, 2020 / 10:53 AM / 11 days ago

BRIEF-India's Kotak Mahindra Exec Says Lending Business Going Through "Very Serious" Scrutiny, Will Only Intensify

May 13 (Reuters) - KOTAK MAHINDRA BANK’S UDAY KOTAK (MD), KVS MANIAN (HEAD OF CORPORATE, INSTITUTIONAL & INVESTMENT BANKING), GAURANG SHAH (HEAD OF ASSET MANAGEMENT, INSURANCE AND INTERNATIONAL BUSINESS):

* LENDING BUSINESS GOING THROUGH VERY SERIOUS SCRUTINY AND IT WILL ONLY INTENSIFY

* EXPECT SIGNIFICANT CONSOLIDATION TO HAPPEN IN FINANCIAL SECTOR NOW

* ADVANCES GROWTH HAD BEEN CAUTIOUS EVEN BEFORE CORONAVIRUS ERA, WHICH WILL CONTINUE

* BANK HAS SURPLUS LIQUIDITY; IF THERE IS A SOVEREIGN GUARANTEE ON LOANS, CAN EVEN LEND TO STRESSED SECTORS LIKE MSME

* CONSUMER LENDING IN APRIL WAS VIRTUALLY NOTHING, DRAW DOWNS ON WORKING CAPITAL LOANS HAVE ALSO BEEN LOWER

* NEXT 6-12 MONTHS EXTREMELY UNCERTAIN ON REAL ESTATE SECTOR

* WILL KEEP CLOSE WATCH ON LENDING TO SECTORS DIRECTLY HIT BY COVID-19 LIKE HOSPITALITY, TOURISM Further company coverage:

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