EXECUTIVE SUMMARY. A 6-year profitability analysis of HDFC Bank, India’s most valuable bank, reveals that it has been able to maintain it ROA despite a surge in credit cost for three reasons. Firstly, it has leveraged its overheads to generate more business for the bank, secondly, the lower tax...
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. The Covid-19 outbreak and the resulting lockdown have caused widespread economic devastation, particularly in urban and commercially developed centres. Taking into account the loss of revenue faced by different types of businesses, the Reserve Bank of India (RBI) plans to come out with a one-time restructuring package...
EXECUTIVE SUMMARY. In a highly reassuring development, Indusind Bank has stated to this writer that its board of directors
“has not considered any proposal to appoint Mr Sobti in any capacity post his retirement as
MD and CEO .”
Stakeholders may recall that at a joint interview to the...
EXECUTIVE SUMMARY. The Chief Executive Officer (CEO) succession fiasco at HDFC Bank, coupled with the tweets of an anonymous source on the abrupt and controversial exits of senior level bank staff (which the bank had no intention of disclosing), has clearly unnerved the senior management of the bank. Aditya...
EXECUTIVE SUMMARY. It is the season for long serving business head verticals to exit HDFC Bank. Following the abrupt departures of Abhay Aima (former Group Head – private banking) and Ashok Khanna (ex-Group Head - automobile loans) comes news of Munish Mittal (Group Head – Information Technology and Chief...
EXECUTIVE SUMMARY. Two long serving senior executives of HDFC Bank who headed important business verticals have abruptly quit the bank, reportedly under unusual circumstances. Abhay Aima (Group Head – Private Banking), quit sometime in FY2020, while Ashok Khanna (Group Head – Secured Vehicle Loans) left in early FY2021. Aima,...
EXECUTIVE SUMMARY. At a time when many private sector banks such as HDFC Bank, ICICI Bank, Axis Bank, Indusind Bank and Yes Bank have increased their deferred tax asset (DTA) in 2HFY2020 as compared with 1HFY2020, thereby inflating their net profits in the period, it is heartening to observe...
EXECUTIVE SUMMARY. To address the woeful state of corporate governance in India’s banking sector, especially in the much fancied and widely covered private sector (in which foreign institutional investors are heavily invested), the Reserve Bank of India (RBI) released a discussion paper on ‘Governance in Commercial Banks in India.”...
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...
