inflation indexed bonds provide great opportunity for other investors.
Chairman and Managing Director,
Punjab National Bank
‘Economic situation will improve and level of stressed assets can fall’
I think things on the economic front are going to improve now. It now looks like the worst is over and has bottomed out.
The Reserve Bank’s statement on the increase in risks to the banking sector has to be seen from the rising stressed assets in the banking sector. This is linked to economic situation which was facing a slowdown. There are no other risks in the banking sector.
The NPA situation in the banking sector has a lot to do with the economic situation. One expects the economic situation to improve and consequently the level of stressed assets can fall.
On the price front, I expect inflation will fall and brought under control.
RBI Governor Raghuram Rajan has already said he wouldn’t raise rates just for one factor — inflation — and would take other factors to take a decision.
I am looking for some relief on the interest rate front.
MD, Mahindra & Mahindra
‘Interest correction and economic revival will lead to resurgence of growth’
While the impact on the rural economy has not been as severe as that on the urban India, consumption in the rural economy is also expected to witness a surge and need-based products such as goods carrier, people carrier and tractors will continue to maintain the average growth rates.
I clearly see the benefits of good monsoon in 2013 to be there in 2014 and even the January harvest is expected to be good. The first quarter of the calendar 2014 will benefit from the good monsoon in 2013 and good January crop. After elections get over things should settle down and begin to improve from the middle of 2014.
The festival season in 2014 will see the revival of the economy and infrastructure growth as they will bounce back this year. Inflation should also come down as the food prices have started to soften and I expect the interest rates to