K V Kamath is preparing to move across the corridor on the 10th floor of the ICICI Tower to his new cabin, which is under renovation now.
While he will continue to get a view of the terrace garden and the waterfall, which he himself conceived, his role will change from Friday -- he will now be the non-executive chairman, a job that his mentor Narayan Vaghul performed for over a decade.
In an interview, the 61-year-old banker tells Business Standard's Shyamal Majumdar and Sidhartha that he has already stopped meeting clients and wants to devote more time on reading. Excerpts:
There is more construction happening around your office now. Are things looking better?
Real estate is bottoming out. Based on anecdotal evidence, buying interest is coming back, though there is still some stand-off between builders and buyers.
In the last six months, the rural economy has kept things buoyant; the urban areas were flat, but we are back on track now. The worst is over.
The mood was really down in the last quarter (of 2008). By mid-January, it had started improving, and by March, there was a clear visibility of the mood changing.
By March, it was apparent that 75-80 per cent of the industries were doing better. While textiles, export-based, auto ancillaries, companies closely linked to the oil & gas business and real estate were the concern areas, the rest of the manufacturing and services sector were doing well.
The feel- good factor of lower inflation and moderation in interest rates helped confidence pick up between January and March. However, corporate credit takeoff will take a few more quarters.
Why was ICICI Bank absent from the last two-three infrastructure projects like the Sasan ultra-mega power project?
Our own strategy of what we will do and where we will sit out is our internal decision. We have our own strategy on how much we want to press the accelerator on either corporate or retail.
We will stick to the broad strategy articulated by Chanda (Kochhar, the managing director and CEO-designate) yesterday. I would be more concerned if, at the national level, the growth engine is stuck.
What is your expectation from the next government?
We should keep growth as the focus and we should put big numbers to that. We should articulate clearly that we want to achieve 10 per cent growth and then try to work on the underpinnings to make that possible.
Underpinnings would mean that monetary and fiscal policies are aligned as the world enters into a situation where liquidity should not be an issue.
We can do a whole lot of things on infrastructure. Though some of it would look like deficit-causing activities, but an infrastructure project that is ambitious transforms nations. The last road building exercise with the Golden Quadrilateral in 2000 was the start of the industrial turnaround.
Are interest rates bottoming out?
There is a slight disconnect at the benchmark bond-end due to the overhang of the borrowing programme. The market still wants some reassurance and that will come once the new government is in place.
For instance, I would think the government would say that the borrowing is large but you should also factor in other sources such as spectrum sales and disinvestment and should take down the borrowings.
The moment you say this, the 10-year yield will correct and you will have a proper benchmark. That is the slight sticking point in an interest rate climate which is getting very benign.
You are moving to your new job when the bank is under pressure.
Most people would say that it would have been nice to leave at the peak. But that is not the right answer. I have not built ICICI with an eye on what will happen in the next quarter. Mr Vaghul built ICICI with a vision and I built things the same way.
When I took over, I knew that change was required, but also realised that it will not happen overnight.
Over the last 10 years, we have painted horizons of growth and tried to go along that path. The first major horizon was retail, which created a lot of excitement. Then, we said that as India connects with the globe -- which nobody believed in 2003 -- Indian entrepreneurs would connect with the world.
The third horizon was the resurgence of corporate India from 2003 onwards. The fourth horizon was rural India, which took a lot of investments. We would have not grown if we were looking at quarter on quarter only.
Some senior-level executives have left ICICI Bank. How do you look at it?
Large corporations, with 30,000-40,000 people and multiple businesses, are just being built in India. In the West, complex large organisations, run by professionals, have seen successions for many decades. In India, it is only now that we are coming of age in terms of size, in terms of businesses and complexities.
We are among the first professional companies of this size, which are seeing a succession. And whenever this sort of a succession process starts, you have to expect that there will be some movement.
Besides, it's not always a bad thing if some people leave an organisation. Everyone who has left the ICICI group has gone with a pat on the back from me.
From an organisational point of view, with people leaving, the average age comes down, which is a very good thing. In the next 10 years, I would rather have my next line of management in their late thirties or early forties, rather than several people in their fifties.
Going forward, how do you look at your role?
I will take the cue from Vaghul. From the day he stepped down, he stopped meeting clients. I will probably be very polite with them, have a cup of tea but say that please discuss business with the management so that there are no crossed wires.
I have already started doing that in a small way. The board functions are getting more and more complex.
In 1996, there were four board meetings in a year, one strategy meeting and a few committee meetings. But today, the situation has changed and Vaghul spends 25 or 30 per cent of his time on ICICI Bank. This is where one needs to devote time as there is a lot to do.
Life will be slightly less hectic now?
When I was 46 and was based in Indonesia, I decided that I will stop working and educate myself. My wife thought I am retiring too early.
However, that did not happen because Mr Vaghul called me and asked me to join ICICI. I now need to feel more fulfiled. I want to start reading, for example, The History of Civilisation. I have not read anything on philosophy or spirituality. People only see what I have achieved, but I am not a complete person.
So your family will get to see you more?
I will get one-third time for myself. My wife and my grandchildren will get to see more of me. I do not think they have a problem with my being around. May be Mangalore will also get to see me more often since my brother lives there.
Image: K V Kamath | Photograph: Rediff Archives
Powered by 
