The current situation of India\u2019s financial sector is weak and reminds of the period between 1998 and 2008, said Uday Kotak. However, it\u2019s not a systemic problem if properly handled, the MD & CEO of Kotak Mahindra Bank told CNBC TV18 in an interview. India's financial sector suffers from a \u201810-year syndrome\u2019 and corrective measures are needed since system tends to get excesses during such period, he added. Given financial sector being in a fragile zone, it will see major consolidation, the veteran banker also noted. \u201cI think at this point of time, my personal view is that the small & mid-cap sector has already seen a lot of the pain. The pain from here may not be anywhere near the pain that people have seen in 2018. Therefore, I do believe that small caps & mid-caps have adjusted more compared to what we have seen in large caps in general,\u201d he added. Also read: Share Market Live: Sensex down 120 points, Nifty below 10,800; Yes Bank shares zoom 25% A right time has come for everybody to gauge how trustworthy are the Indian balance sheets, he added. He also said that a lot more money has moved into larger cap and fewer number of stocks in terms of the marketplace. A lot of money have moved into large-caps, he added. \u201cMy concern at this point of time continues to be in the residential real estate space, which I think is still facing its pressures,\u201d said Uday Kotak. Also read: Good news on economy front; non-food credit growth shows uptick Sharing his views on the real estate sector, Kotak said that the pain is not yet over in the realty sector and he is concerned about the residential space.