{"id":1320,"date":"2019-11-11T04:48:41","date_gmt":"2019-11-11T04:48:41","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/11\/11\/uday-kotak-says-need-rules-for-non-disruptive-exit-in-financial-sector\/"},"modified":"2019-11-11T04:48:41","modified_gmt":"2019-11-11T04:48:41","slug":"uday-kotak-says-need-rules-for-non-disruptive-exit-in-financial-sector","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/11\/11\/uday-kotak-says-need-rules-for-non-disruptive-exit-in-financial-sector\/","title":{"rendered":"Uday Kotak says need rules for non-disruptive exit in financial sector"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1758890\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/11\/uday-1.jpg\" alt=\"uday kotak, kotak mahindra, kotak bank, DHFL\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/uday-1.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1758890\" src=\"https:\/\/images.financialexpress.com\/2019\/11\/uday-1.jpg\" alt=\"uday kotak, kotak mahindra, kotak bank, DHFL\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/uday-1.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/uday-1-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">According to reports, the government is mulling a re-introduction of the Financial Resolution and Deposit Insurance Bill, which may address such issues. (Reuters)<\/span><\/figure>\n<\/div>\n<p>Banker Uday Kotak on Friday pitched for rules to enable exits and consolidation in the financial sector. Kotak, the head of the private sector lender Kotak <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/auto\/new-cars\/mahindra\/\" rel=\"noopener noreferrer\">Mahindra<\/a> Bank, said non-disruptive creative destruction is essential for the financial sector to help in winding up of businesses.<\/p>\n<p>The comments come at a time when the companies in the sector like DHFL are grappling with resolutions and the future of thousands of crore of debt is in doubt. It also comes at a time when cooperative lender PMC Bank is in troubles allegedly because of mismanagement, putting depositors in a difficulty. According to reports, the government is mulling a re-introduction of the Financial Resolution and Deposit Insurance Bill, which may address such issues.<\/p>\n<p>We are at this point of time at a critical juncture to put down the rules of the game on how we will manage exit in a non-disruptive way in the financial sector. This is crucial for our future, Kotak said, addressing a CII event. The policy framework needs to have clarity on how we will handle mortality, how we will handle consolidation. We need good rules of the game for entry, but we need good rules for the exit as well, he added.<\/p>\n<p><strong>ALSO READ | <a href=\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/no-charges-on-neft-from-2020-check-rbis-latest-move-to-boost-digital-payments\/1758544\/\" target=\"_blank\" rel=\"noopener noreferrer\">No charges on NEFT from 2020; check RBI\u2019s latest move to boost digital payments<\/a><\/strong><\/p>\n<p>Kotak said there is a greater need for non-disruptive exits in the financial sector, underlining that the leverage is much higher in such companies as compared to the ones in the real sector. He urged policy makers to take a holistic approach for the development of the financial sector and embrace the free-market model.<\/p>\n<p>Adopting the free market model may lead to some friction because it may be at loggerheads with the objectives of the nation-state, he conceded. He, however, advocated to persist with the same free-market model, pointing that it may look as if there are mad animals in the jungle, but those are essential.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n<div class=\"jobbi-after-content-jh-placement jobbi-entity-placement\" id=\"jobbi-1115320106\"><div id=\"jobbi-898443304\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5862940809620110\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-5862940809620110\" \ndata-ad-slot=\"\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>[ad_1] According to reports, the government is mulling a re-introduction of the Financial Resolution and Deposit Insurance Bill, which may address such issues. (Reuters) Banker Uday Kotak on Friday pitched for rules to enable exits and consolidation in the financial sector. Kotak, the head of the private sector lender Kotak Mahindra Bank, said non-disruptive creative [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1320"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1321"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}