Baldev Prakash - Managing Director and CEO Jammu and Kashmir Bank Limited

Industry, Tourism And Investments Are The Key Growth Triggers For Us

What is your outlook on the Indian banking sector? What are the opportunities you are currently focusing on?

Although some moderation has been suggested in the economic growth forecasts for FY 2023 owing to the continuing geo-political strife and the inflationary pressures, yet, the easing of pandemic woes and some stability in the operating conditions point towards a stable outlook. Going by the FY22 results of banks, there is an unmistakable improvement in key financial metrics, especially asset quality with reduced NPAs and improved profitability. And with strengthened balance-sheets and improved consumer and business confidence outlook from rating agencies backed by domestic demand, the banking sector looks poised for accelerated growth.

However, in an environment in which inflation and lower yields continue to impinge upon the banks’ margins, we see ourselves on the right side of the equation with a positive interest rate gap. Anticipating higher rate of growth in Jammu and Kashmir economy than the national average, we are seeing opportunities coming up for us starting with the already record tourist inflow this year. Besides, UT government’s industrial package of over ₹28,000 crore and emphasis on capex in the current year’s annual UT budget pegged at over 40 per cent coupled with a favourable business climate for domestic and global investments also provide us good opportunities to capitalise on.