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    Growth may return to 9% if India ticks all the right boxes: Aditya Puri

    Synopsis

    Indian economy is rebounding with zooming sales in select sectors after shrinking 23.9% in the first quarter. While the rebound is patchy, it may still help the country to end the year with a 9.5% contraction, according to Reserve Bank of India (RBI) projections.

    Negative sentiment on Indian economy was overdone: Aditya Puri
    Mumbai: India’s economic recovery has been swift since the unlock began — with cars, motorcycle, and television sets flying off the shelves — holding out promise of a return to 9% economic growth if the administration executes flawlessly on policy decisions, said Aditya Puri, the outgoing chief executive of HDFC Bank.

    Indian economy is rebounding with zooming sales in select sectors after shrinking 23.9% in the first quarter. While the rebound is patchy, it may still help the country to end the year with a 9.5% contraction, according to Reserve Bank of India (RBI) projections. “From the time since unlock has started we are seeing recovery,” said Puri. “Someone is at 75%, somebody is at 85% and 90% across large sections of the economy. I am not saying that the problem is solved for everyone, but we are recovering.”

    Puri believes if India gets its policies right, it can grow at 8-9%. “If India does everything right we will reach 8-9% (growth),” he said in an interview with ET. “Even if we get it 60% right, we should get 7-7.5% growth. If we get semi-urban and rural India growing, if we get the right infrastructure spends, have the government spends on productive resources and are able to attract manufacturing into India, we can grow at 7-9%. This will take 2-3 years of extensive execution of items that have already been identified.”

    ‘Allow Industrial Houses in Banking’
    Responding to a question on the litigation on interest on interest in the Supreme Court, Puri said that contracts between businesses are sacrosanct for the smooth functioning of the economy. “I am running a commercial organisation in this country. I have entered into a commercial contract with a company. You have to honour my contract,” said Puri. “They can have their discussions with the government but you need to remember that I have a commercial contract in a democratic country. And if you don’t pay me interest how do I pay the depositor?”

    Puri who is stepping down later this month after building an institution worth ₹5.75 lakh crore from the scratch over a period of 26 years, tilted in favour of banking licences to industrial houses with ‘ethics’ on the ground that technology enables the regulator to ringfence such banks from abuse by business houses.

    Despite some private banks and NBFCs failing, Puri believes that there’s scope for a few more HDFC Banks to emerge. “Industrial houses with good ethics should be allowed,” Puri said, on whether the RBI should permit business families to own banks.

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    9 Comments on this Story

    Rituraj Kumar39 days ago
    This is where the problem is with current government. The government thinks Hindutva related agendas are the right tick boxes. To khayali pulao pkane se 9% to nahi hoga.
    Dd Samal40 days ago
    Great job by Mr Puri. HDFC is the most trusted Indian Bank for all the stakeholders in this world. He has created this brick by brick over years.
    Sitanta Das40 days ago
    If Mr Puri has confidence in HDFC, he wouldn't have pulled out his money. We should be cautious ..
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