The best is yet to come for Indian banking: Rajnish Kumar, Aditya Puri

We need both large banks and small niche players, so that all the needs of the economy can be served, says Rajnish Kumar, former SBI chairman

The just-retired chief executives of the country’s top two banks – Rajnish Kumar (State Bank of India) and Aditya Puri (HDFC Bank) — shared their thoughts on key issues plaguing the Indian banking industry. Edited excerpts from a fireside chat:

Moratorium’s impact on banks

Rajnish Kumar: State Bank of India decided in June to adopt a very clear definition — anyone who has not paid one instalment will be considered to be under moratorium, and we declared that number to be around 9.5 per cent. Then, regulatory dispensation was given for over-the-counter restructuring on a case-by-case basis. For corporates, a