Not everything Okay in the economic world, need to keep close eyes, says AXIS Bank CEO

New Delhi (India), 4th April 2023: Amitabh Chaudhry, the chief executive officer of Axis Bank, stated that he would keep a close eye on consumer demand in the Indian economy and that expectations for development may need to be slightly tempered. He said that lenders must be cautious about the economic outlook despite the recent strong development.

According to a Financial Times article, Chaudhry claimed that forecasting has become challenging because of the slowing post-pandemic recovery in India and the instability of the world economy.

He claimed that although private capital spending has increased somewhat, public spending has not kept up. He added that the growth could be affected if the rate hikes hit an inflection point, which is “not far away.”

Chaudhary said, “Right now, the data seems to indicate that broadly things are ok, but not everything is ok. The private [capital expenditure] has picked up, but not enough. [The] government is obviously still spending a lot of money . . . but will it lead to a general pickup in demand? I think we have to be watchful.”

Regarding the failure of a few Western banks, Chaudhry stated that he was unconcerned about the stability of the Indian financial system because the nation’s banks are well-capitalised.