Axis Bank CEO Amitabh Chaudhry cautions over risks of slowing economic growth in India

Axis Bank CEO Amitabh Chaudhry has expressed his concerns about the economic growth of India, as he emphasizes the importance of staying vigilant despite the recent growth seen in the country. 

As the post-pandemic rebound slows down and the global economic volatility increases, forecasting has become a more challenging task for the lenders. Chaudhry believes that private capital expenditure needs improvement, but adds that the government is still investing a lot of money. He warns that growth could be compromised if rate hikes pass a “point of inflection” – something that is “not far away”. 

This week, the Reserve Bank of India will meet to discuss interest rate policy, with expectations for another rate hike as India braces itself for the economic consequences of the pandemic. 

Despite the recent purchase of Citigroup Inc’s India consumer and non-banking finance businesses, Chaudhry expressed that he wasn’t concerned about the stability of India’s banking system, as the country’s banks are considered well-capitalized.