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Articles Published by Hemindra Hazari

EXECUTIVE SUMMARY. Under the threat of being pulled up for contempt of court by the Supreme Court of India, the Reserve Bank of India (RBI) finally disclosed the confidential inspection reports, called Risk Assessment Reports, of some banks requested under the Right to Information Act (RTI), 2005....
Hemindra Hazari 9 July 2019 On 26 June 2019, confronted with a contempt petition filed in the Supreme Court of India by Right to Information Act, 2005 (RTI) activist, Girish Mittal, the Reserve Bank of India (RBI) finally disclosed the...
EXECUTIVE SUMMARY. The appalling record of incompetence, and likely worse, by India’s credit rating agencies (CRAs) continues to lengthen. The latest instance is the double default of commercial debt obligations (on June 27 and July 1, 2019) by Cox and Kings, a tour and travels services company....
EXECUTIVE SUMMARY. The resignation of Viral Acharya, deputy governor, Reserve Bank of India (RBI) six months before his term was to end, was preceded by the resignation of Urjit Patel. Earlier, Raghuram Rajan failed to get a second term as RBI governor. However, these developments did not...
EXECUTIVE SUMMARY. On June 14, 2019, Tech Mahindra joined the ranks of Tata Global Beverages, Ambuja Cement and Dr Reddy’s in appointing Shikha Sharma as an independent director. Private equity firm KKR had also appointed Sharma as an adviser for their alternative investments. The irony of publicly-owned...
EXECUTIVE SUMMARY. In a stunning rebuke to audit firm S.R. Batliboi (SRB), a member firm of Ernst & Young, the Reserve Bank of India (RBI) barred the firm from taking any bank audit for 1 year commencing from April 1, 2019. The public humiliation of a leading...
EXECUTIVE SUMMARY. While the market is commending banks like ICICI and Axis Bank for cleaning up their balance sheets with aggressive loan loss provisions, what is being ignored is the role played by net deferred tax assets (DTA) in partly neutralising the impact of the provisions. DTA...
EXECUTIVE SUMMARY. Indusind Bank not only declared 4QFY2019 results far below consensus expectations, but FY2019 net profits have been inflated by a significant increase in net deferred tax asset (DTA). As usual, the business media and sell-side analysts have ignored the significance of the rise in DTA...
EXECUTIVE SUMMARY. Yes Bank’s loss in 4QFY19 would have been much higher, by Rs 16.6 bn, and its annual profit significantly lower, had it not been for the increase in the net deferred tax asset (DTA) of the same amount. The huge increase in the DTA partly...
EXECUTIVE SUMMARY. All indicators point to a disturbing slowdown in India’s economy in recent months: the Index of Industrial Production, the Purchasing Managers’ Index, the fixed investment rate, and even GDP. Farm prices have collapsed, resulting in negative growth in value added in agriculture; real rural wages...