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Articles Published by Hemindra Hazari

EXECUTIVE SUMMARY. An internal memo of an anonymous former senior official of ICICI Bank’s risk management department, publicised by the Indian Express, provides a damning indictment of the credit appraisal and monitoring processes at the bank. It reveals how basic banking processes were violated, and public and...
EXECUTIVE SUMMARY. The capital markets continue to reward private sector banks with rich valuations, benefitting shareholders. But larger stakeholders such as bank customers are registering a steep increase in complaints to the banks’ ombudsman. For the year July 1, 2019 to June 30, 2020, customer complaints (per...
EXECUTIVE SUMMARY. The prestigious Institutional Investor 2019 All-Asia ex-Japan Executive Team Awards have been announced. Remarkably, sell-side analysts selected Jairam Sridharan (Axis Bank) as the ‘Best CFO ’ in the banking category. This should be deeply troubling to the capital market. In effect, these highly experienced analysts...
EXECUTIVE SUMMARY. On the eve of HDFC Bank’s 2QFY2020 results (October 19, 2019), an analysis of its profitability for the last 5 years reveals that, while its ROA marginally declined as credit costs increased, it was the leveraging of operating costs which compensated to maintain the bank’s...
Hemindra Hazari There are high hopes that Urjit Patel, the new RBI governor will act to revive bank lending and thereby do his bit for the economy. But that would require him to make the right diagnosis in the first place. The recently released RBI...
A strange picture of India’s financial system is being drawn, where privatisation is being pushed even as critical analysis and reporting on private sector entities is slowly being discouraged. Hemindra HazariBANKING29/DEC/2017
EXECUTIVE SUMMARY. Institutional investors were recently in the news for opposing a 10% pay hike for a CEO-promoter in FY2021, a year of bad results for his firm. One big story went unremarked: that the latest pay hike was on a high base, since the CEO had received...
Leadership is unravelling at Yes Bank and the stock is tanking. In the dark hours of November 14, the bank announced the immediate resignations of Ashok Chawla, its non-executive, independent chairman, and Vasant Gujarathi, an independent director and head of its important audit committee.  The directors of Yes Bank appear to...
Forecasts for financial institutions have to take into account the coming of a new chief executive officer (CEO). Some new CEOs have presented shocking results in their first year. Robust profits of previous years have suddenly evaporated, replaced by marginal profitability or even losses.
The RBI’s decision on April 26, 2021 to curtail tenures of bank chief executive officers and executive directors may finally lead to Kotak relinquishing his post at the end of 2023. Had the Reserve Bank of India (RBI) descended,...