Tuesday, May 27, 2008

K.V.Kamath on moderation

K.V.Kamath is not so much known for his wit as much he is for his aggressive growth strategies. But lately I think he seriously tries to humor people.

I was reading this. Here Kamath says "Systematic liquidity is comfortable. We will have to watch carefully before taking any decision to either raise or lower interest rates. Systematic demand is still slack; it does not warrant any tinkering in interest rates."

I often hear bankers saying “lower interest rates and they will come” about credit offtake. Kamath gave that chicken and egg story a spin on its head by saying just the reverse. He is also pinching on the reward points for his top of the line credit card customers (self a victim). Normally ICICI bank is one of the first banks to cut interest rates to grow its loan books. Perhaps he’s not his usual self these days after ICICI bank had to deal with its $100 million MTM provisioning woes on CDNs and CLOs.
I say this "Mr.Kamat, all bad times do pass. This one too will". Hope he continues to be generous with his customers and be his normal self.

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