Kamath doesn't see economy slowing down

Bangalore, Jul 9: Striking a bullish note, eminent banker K V Kamath today (Jul 9) said he did not foresee the economy slowing down though "governments are not doing well" and all are cautious perceiving moderation in economy.

"The good news is growth is here to stay for a long time, during which we will see transformation", Kamath, who is ICICI Bank's non-Executive Chairman, said during a meet-the-press session organised by the Press Club here.

"If in the long term GDP is 10-12 per cent, growth in credit will have to be 20-24 per cent. I believe it will happen," he said, adding, he did not perceive any slowdown.

On a possible slowdown in the economy, he said, "I believe we have to wait and watch. While earlier it was a question of companies and individuals not faring well, this time around it was "governments not doing well".

"There is a certain risk and all understand the risk and adopt caution... The risk may not erupt into a slowdown... I do not see a slowdown as yet, I do not see it happening," Kamath, who is also chairman (non-executive) designate of Infosys Technologies, added.

He said though recognised growth statistics was around 8 per cent, around one-and-a-half per cent was estimated at un-counted growth and a similar percentage unaccounted growth, meaning "India as a country was growing at over 10 per cent".

He said the hypothesis was once a growth story commenced, it was expected to continue for a long time.

To a particular question on Anna Hazare-led corruption campaign, Kamath said: "What we need is a system of checks and balance. A middle ground will have to be formed to ensure how the checks and balances will be put in in without diluting the democratic process".

PTI