Great potential for banks in India: Kochhar

Kochhar, MD and CEO of ICICI Bank, also said the country’s financial services sector, including banking, has got tremendous growth potential for the next few years.

“While there has been concern over high leverage in some segments of the corporate sector, the debt levels have to be seen in the context of the fact that many corporates are in an investment phase,” Kochhar said in an interview, at the World Economic Forum.

She said the companies’ debt leverage would appear high only until the investments are completed and start generating cash-flows. “As the cash flows from the projects start, the debt levels will be sustainable and should moderate over time. What is important currently is to ensure that the projects under implementation get the necessary last mile clearances and linkages to ensure that the assets become productive on schedule.”