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Articles Published by Hemindra Hazari

Retail-focused new private sector banks, the darlings of the capital market, are facing the ire of the banking regulator. Nearly two months after the Reserve Bank of India (RBI) compelled HDFC Bank to classify a large account as non-performing, thus qualifying the blue-blooded bank for ‘divergence’ (from RBI findings), comes news that the regulator...
After the Reserve Bank of India (RBI) made clear to the board of Axis Bank that it should reconsider its decision to grant the present Chief Executive Officer (CEO) a fourth term, one would have expected the board to have seen the light. But no, shockingly, the board has...
On January 11, 2019, the Reserve Bank of India (RBI)  issued a press release informing the public that “by an order dated January 4, 2019 imposed a monetary penalty of Rs 30 million on Citibank NA India (the bank) for deficiencies in compliance with the RBI instructions on ‘Fit and Proper’ criteria for directors...
Indusind Bank, one of the stock market darlings and foreign investor favourites, startled the capital market with a mere 5% rise in net earnings. Earnings rose to Rs 9.2 bn for the quarter ended September 30, 2018 (2QFY2019), as compared with the consensus estimate of Rs 11 bn. This was on account...
Hemindra Hazari 20 March 2017 After the BJP’s decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have started tolling in the capital market. The primary cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero percent interest. Capital market...
EXECUTIVE SUMMARY Indusind Bank’s reckless decision to provide a Rs 20 bn (8% of the bank’s capital) unsecured bridge loan to IL&FS, an insolvent infrastructure company has led to a significant de-rating of its valuation multiple. In the 3QFY2019 results call, Ramesh Sobti, the bank’s CEO believes that the bank...
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 have increased...
EXECUTIVE SUMMARY. Pay obscene remuneration to a favoured few, completely out of sync with the already inflated salary structure in the industry, silently watch as they bring the bank to near collapse – this was Yes Bank’s policy for senior management. It is not surprising that this was done...
Hemindra Hazari The government’s decision to appoint Urjit Patel, the current deputy governor of the Reserve Bank of India (RBI), to replace Raghuram Rajan as governor of the central bank was met with a chorus of approval by the media, and by captains of industry and financial capital who proclaimed...
Even in a rowdy game of soccer, two yellow cards result in dismissal from the field of play. Indian banking, though, adheres to lower standards. For two consecutive years, Axis Bank has been exposed by the regulator for mis-reporting in its financial statements; yet the bank’s board of directors...