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Articles Published by Hemindra Hazari

EXECUTIVE SUMMARY. According to the grand theory of capitalism and the free market, competition anoints the customer as king. In the capital market, it is argued that increasing the number of players would improve price discovery, and greater scrutiny of managements’ conduct would discipline them. Thus the...
EXECUTIVE SUMMARY. On July 19, 2022, based on a police press release, the media reported (here and here) a major theft in the currency chest of the ICICI Bank branch in Dombivali (near Mumbai). Allegedly, an ICICI Bank employee, on the weekend of July 9- 10, 2022,...
The Securities and Exchange Board of India (SEBI)’s order dated June 30, 2022 indicted not only the senior-most executives of Kotak Mahindra Mutual Fund (KMF), but also Kotak Mahindra Trustee Company (KMTC), for failing in its oversight of the asset management company. The matter related to KMF’s...
EXECUTIVE SUMMARY. Yes Bank is in the news  for its non-performing assets, a legacy of erstwhile founder-CEO Rana Kapoor’s  reckless lending being transferred to an Asset Reconstruction Company (ARC). If and when the deal is announced, the balance sheet and the bank will be absolved of the...
Jay Kotak’s appointment comes with questions for the private banking sector, which has mostly eschewed the dynastic tendencies of old-school India Inc companies. Jay Kotak (standing) and Manish Agarwal of the Kotak Mahindra Bank's 811 initiative. Photo: YouTube screengrabSupport...
EXECUTIVE SUMMARY. When private bank stocks languish, or worse, spiral downwards, it is not just shareholders whose wealth erodes. Senior management executives, the elites in the private financial sector, also grievously suffer, as much of their personal wealth may be tied up in employee stock ownership plans...
EXECUTIVE SUMMARY. The phenomenal success of HDFC Bank under the stewardship of Aditya Puri, its first CEO, had some unfortunate consequences. It led to a belief that the recipe for achieving a premium valuation was to employ larger-than-life Alpha leaders who promoted an aggressive work culture, imposed...
EXECUTIVE SUMMARY. Axis Bank’s acquisition of Citibank India’s consumer finance division has been applauded by the stock market, and the bank has outperformed Nifty-50 and the Bank Nifty since the announcement. However, Axis Bank shareholders need to be more...
EXECUTIVE SUMMARY. Many cases of mis-selling by ICICI Prudential Life (IPru Life) have been highlighted by this analyst since 2018 (also here and here). The company has responded by highlighting the high and improving persistency ratios (proportion of business that is retained from the business underwritten, measured...
EXECUTIVE SUMMARY. The argument made at the time of opening up the life insurance sector and allowing the private sector was that doing so would increase life insurance penetration (life premium/GDP) and thereby increase long term savings, which would flow into infrastructure investments (which are inherently long-term)....