K V Kamath Highlights Caution in Retail Banking Amidst Fintech Surge
K V Kamath, Jio Financial Services chairman, cautions lenders on retail banking risks at a Bengal Chamber event. He foresees decreasing corporate dependence on banks and warns of potential portfolio imbalances, especially with unsecured loans. Kamath notes fintechs heightening risks and urges caution amidst market exuberance.
- Country:
- India
In a critical advisory at the Bengal Chamber of Commerce and Industry event, K V Kamath, seasoned veteran and current non-executive chairman of Jio Financial Services, urged banks to exercise caution with their retail exposures. He emphasized the potential for portfolio imbalances, particularly with unsecured loans, which could severely impact balance sheets.
Kamath highlighted the growing influence of fintechs, noting their role in extending credit to those with lower scores, amplifying risks in the expanding retail lending segment. Despite enthusiasm in the market, Kamath strongly advised vigilance to prevent bad debt accumulation, citing concerns from recent Sebi data on significant investor losses.
He also discussed the shifting dynamics in corporate financing and expressed optimism about domestic investments in equity markets. Moreover, Kamath stressed the importance of a 'growth runway' for sustained economic prosperity, referencing the experiences of Japan and China.
(With inputs from agencies.)
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