Banking system's Goldilocks period is over: Uday Kotak

Kotak warns India's current account deficit is likely to come under pressure due to Trump's trade policies

- Gopika Gopakumar

Indian banking system's Goldilocks period is over, according to Kotak Mahindra Bank founder and former chief executive officer Uday Kotak, who warned of rising stress in the unsecured and microfinance portfolios.

Speaking at the three-day Kotak Institutional Equities' Investment Conference that started on Monday, Kotak cautioned that potential accidents are "unavoidable as we move into a challenging credit cycle".

Kotak, in his last shareholder letter before stepping down in 2023, was one of the few CEOs who had noted that India's financial sector was in its Goldilocks period. But that view has changed.