Exclusive | The age of 'lazy banking' is over, says Uday Kotak

Veteran banker Uday Kotak said the “days of ‘lazy banking’ are over” and that the traditional regulatory moat protecting banks has effectively disappeared. His comments come at a time when India’s banking sector is experiencing competition from fintech companies, along with growing regulatory oversight on risk, capital, and customer protection.

“If I were to start afresh today, I would be a digital evangelist,” Kotak said, noting the importance of technology in banking.

He cited Brazil, where the largest company by market capitalisation is a bank without branches, as an example of how digital banking models can operate at scale.

Kotak also said, “India is transforming into a nation of investors from savers,” pointing to rising participation in equities, mutual funds, and other financial products.

He predicted that mutual fund assets under management (AUMs) are likely to double in the next five years, reflecting growing financial literacy and the increasing use of digital investment platforms.

He also issued a caution regarding risks in this transition.

On global competition, Kotak said there is a “two-way contest between countries and companies” and added that India must “fight smartly.”

He noted that no Indian company has yet built a global consumer brand and that investment in research and development remains limited, pointing to areas where Indian industry could strengthen its competitiveness.

On regulation and governance, Kotak said both regulators and industry participants need to evolve. “Both have made mistakes. Both must learn,” he said.

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