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Articles Published by Hemindra Hazari

EXECUTIVE SUMMARY. HDFC Bank’s 1HFY2021 results is a study in contrasts to its non-bank finance company (NBFC) subsidiary, HDB Financial Services (HDB). While the standalone bank reported a 19% yoy growth in net profits, HDB’s  profits collapsed by an alarming 94% yoy (HDB reports only half-yearly performance)....
EXECUTIVE SUMMARY. On the opening date of Vedanta’s delisting offer (October 5, 2020), ICICI Securities (I-Sec) issued a results research note on Vedanta with the following bizarre statement: “Vedanta has highlighted the SEBI approved book value (ex the revaluation reserves) of Rs 89.3/share.” I-Sec, a listed...
EXECUTIVE SUMMARY. Media commentators analysing the tenure (October 7, 2017 to October 6, 2020) of Rajnish Kumar as chairman of the State Bank of India , India’s largest bank by assets, have commented on the sharp decline in gross non-performing assets (GNPAs) in absolute and in percentage...
EXECUTIVE SUMMARY. When an anonymous whistleblower tweets on malpractices at India’s most valuable bank, and provides authentic information to justify his claims, one would expect prominent banking journalists and independent directors of the bank to read his tweets. After verifying the details, they ought to bring these...
EXECUTIVE SUMMARY. Data from the Reserve Bank of India (RBI) reveal that, in the recent period of declining interest rates, while all banks have been reducing their deposit rates as well as their benchmark rates (marginal cost of fund-based lending rates), in July 2020 private sector banks...
EXECUTIVE SUMMARY. US law firms, Rosen Legal, Pomerantz and Schall have filed class action suits (here,  here and here)  against HDFC Bank. The grounds are that HDFC Bank allegedly misled investors, provided inadequate disclosures and internal controls over financial reporting, and engaged in improper lending practices in...
EXECUTIVE SUMMARY. The Council of Ethics of the Government Pension Fund Global (GPFG), the Norwegian sovereign fund, recommended on February 19, 2020 that Page Industries (licensed to produce the Jockey brand of clothing and Speedo in India) be excluded from investment by the fund.  GPFG is the...
EXECUTIVE SUMMARY. The near-absence of a government stimulus to revive the Indian economy from the Covid-19 meltdown portends a severe and prolonged economic slowdown. This will squarely hit the banking industry with huge credit costs and low growth. In such a dismal scenario, the only lever available...
EXECUTIVE SUMMARY. A 6-year profitability analysis of HDFC Bank, India’s most valuable bank, reveals that it has been able to maintain it ROA despite a surge in credit cost for three reasons. Firstly, it has leveraged its overheads to generate more business for the bank, secondly, the...
EXECUTIVE SUMMARY. In comparing a company’s stand-alone expenses with its consolidated accounts, it is highly unusual for the consolidated numbers to be lower than the stand-alone numbers. But what has gone unnoticed for some years in HDFC Bank is that its stand-alone ‘other operating expenses’ has been...