Capital Market

Capital market articles published by Hemindra Hazari

Mumbai: It is the season of resignations for the independent directors of India Inc’s corporate boards. The recent stormy exit of R. Chandrashekhar from the board of Yes Bank caught the media’s attention, after which the private sector lender had to issue an apology to the stock exchanges and retract its earlier statement that his resignation was...
Claudius, in Hamlet, noted that “When sorrows come, they come not single spies but in battalions.” He could well have been speaking about the woes of Yes Bank shareholders. The last few months, and in particular November, have been a punch in the gut to owners of the stock. On November 14,...
Even though the government has intervened and installed a new board, the IL&FS saga continues with no resolution in immediate sight. Daily reports of defaults of IL&FS group companies are heightening concerns in the financial market. This is happening in the back drop of the rupee in free fall, stock market...
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 CEOs and...
The now-beleaguered and much-derided Infrastructure Leasing & Financial Services Limited (IL&FS) holds its annual general meeting on September 29. IL&FS has a handful of major shareholders who, like Kumbakarna of Ramayana fame, were in deep slumber through the long night of mismanagement, and it remains to be seen whether these same shareholders display...
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. The RBI’s directive is...
By Hemindra Hazari Even in a season of corporate misgovernance, scams and lack of any CEO-level and board-level accountability, a new leviathan of misgovernance threatens to dwarf the rest. Emerging from the murky depths – where it seems to have flourished, largely unreported on by the media, financial analysts and even 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,...
If Chanda Kochhar had disclosed her husband's dealings and recused herself from the credit committee that sanctioned the Videocon loan, her personal integrity would not be under question right now. Credit: Reuters Hemindra HazariBANKING02/APR/2018 ICICI Bank chairman M.K. Sharma displayed utter contempt for the media and public by calling for a press conference,...
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 Hazari BANKING 20/MAR/2018 Urjit Patel is normally a very reticent man. So much so that as the Reserve Bank of India (RBI) governor, the individual...