India’s private sector banks were held up for years as the standard of efficency and corporate governance to which public sector banks should aspire. But now it emerges that private bank after private bank has in fact been harbouring bad debts, fudged accounts, corrupt deals, gross mismanagement, overly paid...
Where it has powers, the RBI has refused to use them, even when serious lapses in management are detected.
Former RBI governor Urjit Patel. Credit: Reuters
Hemindra HazariBANKING20/MAR/2018
Hemindra Hazari
Everyone knows public sector banks are less profitable, more prone to political influence and have higher ratios of non-performing assets (NPAs) than their private sector counterparts. In contrast, new private sector banks, set up post 1991, are media and stock market darlings....
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 Hazari
The media has gone overboard on the government of India’s decision not to give Raghuram Rajan, the Reserve Bank of India (RBI) governor, a second term, and focused on how the government is unable to retain an internationally acclaimed economist. However, now...
There is a paucity of demand of India – which requires an expansionary fiscal policy to revive employment, growth and investment.
Money. Credit: PTI
Hemindra HazariBANKINGBUSINESSECONOMY01/FEB/2018
There was...
SBI's massive restructuring of standard loans are finally coming home to roost with a vengeance.
Hemindra HazariBANKING13/FEB/2018
SBI’s headquarters in Mumbai. Credit: Reuters
Hemindra Hazari
ICICI Bank, India’s largest private sector bank by assets, posted shocking results for the quarter ended March 31, 2016. The consensus analyst forecast for the bank’s net profit was Rs. 3,100 crores; the bank reported a paltry Rs. 702 crores. This was an annual...
In response to the Reserve Bank of India’s (RBI) directive to Yes Bank to replace the present CEO-promoter Rana Kapoor by January 31, 2019, the bank’s share price fell a stunning 29% on September 21, and Rs 20,937 crores of market capitalisation went up in smoke.
A liquidity crisis of such a magnitude is not an overnight phenomena yet the credit rating agency certified the compnay as investment grade thereby misinforming bond holders and bankers
