MD & CEO, YES Bank
Set against the backdrop of below-par domestic and global growth, subdued private sector sentiment and weak rural consumption, the Budget is a perfect mix of promises and accomplishments, a commendable blend of fiscal quality and the government’s impetus to growth.
Quality and effective deficit consolidation will not only have the effect of disciplining the government, but will also crowd-in private investment, and keep inflationary pressures under check. With fiscal consolidation firmly in place, I expect the RBI to oblige with a repo rate cut of 75 basis point (bps) by end-2016.
Amidst the weak credit offtake in FY16, the Budget has given adequate impetus to both demand and supply of credit via encouraging retail participation in government securities, incentives to deepen the corporate bond market, and ₹1.8-lakh crore to be sanctioned under Mudra Yojana in FY17.
Most important are the game-changing systemic reforms in the form of the bankruptcy code and the Monetary Policy Committee.
Overall, the Budget has delivered on the utmost requirement of the banking and financial sector — that of a “strategic repositioning” for creating durable growth impulses.