Kotak Mahindra Bank expects profits of top Nifty companies to grow 25% as it is finally seeing some signs of investment, said KVS Manian, who heads corporate, institutional and investment banking, and oversees more than 30% of the private sector lender’s ?2 lakh crore advances. In an interview to Joel Rebello, he shared his perspective on the macroeconomic situation and opportunities for the bank. Edited excerpts:How do you view the macroeconomic situation? Is a turnaround round the corner? We have been talking about a turnaround for a long time and I myself have been wrong at least a couple of times. But now we feel it is finally coming together. Our forecast for the top Nifty companies is for profits to increase 25%. We are seeing some signs of investment finally. Disruptions caused by demonetisation and GST are past us and things are better than in the last two to three years. We expect opportunities to grow from here. That’s the big change. We are seeing three or four clear sectors where investment is looking good – roads, renewables, power are seeing new players coming in. Order book in the capital industry is better, which is an early sign of investment revival. Banking sector, though, has still to go through some pain after the new guidelines.What is the opportunity for Kotak Mahindra Bank in this situation? Almost all parts of our firm have immense opportunities. In a situation where many other banks are paralysed because they have to take provisions, banks like us which have reasonably clean balance sheets can gain market share in the lending business, which is already happening. Secondly, we are seeing advisory opportunities in IBC (Insolvency and Bankruptcy Code) and restructuring, along with M&A (mergers and acquisitions). We are already working with some people. Thirdly, we can also participate with new bidders either through our prop book or through funds that we have. We run a distressed asset book which has opportunities. I am sure some of these will work out.Do you see any risk in banking because of this shake-up? The good part is 70% of the system is owned by the government, which has an element of sovereign comfort. It will not allow the system to degenerate into a crisis. Yes, it is unprecedented levels of stress for the system and the numbers are large, but I don’t expect it to go out of hand. It is also politically important in an election year, which means that it will not be allowed to go out of hand.You merged corporate and investment bank about four years ago. How has that worked out?We started the coverage with 25 and now we cover 40 top companies on an integrated basis in both corporate and investment banking. It has given us a much higher level of visibility, which helps both the businesses. Corporate finance is relatively more commoditised. Advisory gives us more mindshare and visibility, which gives us spin-off effects for other businesses.Many of the investment banking deals require underwriting and use of balance sheet, so even investment banking gains. If you get into corporates in a tender and bid situation, like when they want to raise large money, then you are always tight on pricing. But if you are engaged far before a bid situation, you have an ability to do exclusive transactions like an inter promotion transfer or an acquisition, which is a win-win transaction for both.No other bank in India has as strong franchise in all – corporate, investment banking, and institutional equities – and we can take advantage of that.