Fintechs creating niche products for corporate banking Corporate Banking

Manish Kothari, senior executive vice president & business head - Corporate Banking at Kotak Mahindra Bank speaks about trends in business, technology and fintech partnerships:

Kotak Mahindra Bank has created segments in corporate banking for better and sharper focus. It has segments for large corporates and for SME companies with turnover below ₹500 million. It also has a special team that focuses on MNCs. It has recently created a new team that focuses on the new age companies like Amazon, Flipkart and Oyo Rooms.

Ravi Lalwani: There are reports that some 96,523 cases involving a total amount of ₹375 billion have been disposed at the pre-admission stage of Insolvency and Bankruptcy Code 2016. While recovery rates have increased from 26.5% in 2018 to 71.6% in 2019 in procedures under this law, the time taken in recovery too has improved from 4.3 years in 2018 to 1.6 years in 2019. What are your expectations about the likely range of these numbers for 2020?

Manish Kothari: Procedures under the Insolvency and Bankruptcy Code will see more positive results in FY2020, but only if the economy picks up and we see some signs of improvement on the real estate side. There is a lot of collateral in the SME space in terms of resolution, which is industrial, commercial or residential commercial collateral. Some of these from resolution point of view will get linked. That is how the economy starts growing, leading to greater demand for industrial, commercial and residential collateral.

What kind of risks have declined and what risks have increased in corporate banking this year?