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Articles Published by Hemindra Hazari

EXECUTIVE SUMMARY For the beleaguered non-bank finance company (NBFC) sector, banks are the single largest component of external funding. This source peaked at the end of September 2018, in the aftermath of the default of IL&FS, a private unlisted infrastructure developer and financer.  However, in the beginning of the last...
EXECUTIVE SUMMARY. The Securities and Exchange Board of India (SEBI)’s order  penalising Kotak Mahindra Mutual Fund (Kotak MF), a subsidiary of Kotak Mahindra Bank (KMB) provides an in depth insight normally unavailable to the public on how imprudently investment decisions are taken by so called professionals in marquee firms...
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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, robbed the...
The bank’s promoter-cum-CEO and its board of directors have not understood the letter and spirit of an important banking rule, but have instead sought to take it as a starting point for negotiation. Uday Kotak. Credit: Reuters Hemindra HazariBANKING17/AUG/2018 In an indictment of Kotak Mahindra Bank (KMB) and its promoter-CEO, Uday Kotak,...
It is Uday Kotak’s swan song year as chief executive officer of Kotak Mahindra Bank (KMB), and the theme of the bank’s FY2023 annual report  is “Acceler@ting Change”. In line with this, the bank’s “strategy emphasises on building younger , diverse and future-fit talent at the Group.” Perhaps this...
In Ian Fleming’s iconic James Bond movie franchise, the dapper 007 manages to get away, however precarious the situation. Similarly, in Yes Bank, one Additional Tier 1 Capital (AT1) perpetual bond issued under Basel III classification has escaped from being written down. In the wide publicity that the write...
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 consistently higher...
EXECUTIVE SUMMARY. Citi’s decision to withdraw  from consumer banking in 13 geographies, including India, and focus instead on corporate/institutional banking, is a lesson in missed opportunities, at least in the case of India. Citi India was the pioneer in consumer banking, in products such as mortgages and credit cards,...
EXECUTIVE SUMMARY. Government banks have been derided for indulging in ‘phone banking’ (being instructed on the telephone by ruling party politicians and civil bureaucrats to lend to specific unworthy companies). But what the Enforcement Directorate’s (ED) affidavit in the Delhi Court (as disclosed by the media -- here and...