Banking Industry Needs To Step Up: KV Kamath

India is putting in place the right blocks to fight the economic fallout of the pandemic, but the banking industry needs to step up to the plate in lending to businesses, shedding risk aversion. Policymakers can also turn a blind eye to rating downgrade threats due to their inherent bias, veteran banker KV Kamath. A bank, which has reasonable NPAs (non-performing assets) but is growing, will survive, while another one with the same level of NPAs but no growth will see capital wiped out in next 3-4 years,” Kamath said, referring to the apparent risk aversion of bankers. Kamath, who recently stepped down as president of the Shanghai-based New Development Bank, said, “We always say that bankers’ karma is to lend,” said Kamath. “If you look at any developmental greenfield project, at best it has a BB rating irrespective of who promotes it. Without these BB projects coming into the system we cannot grow. We need a mindset change. But I am very clear that without these startup projects in either manufacturing or infrastructure sector, our growth aspirations will be contained.”