EXECUTIVE SUMMARY. For the second time, State Bank of India (SBI), the government’s premier bank, and India’s largest by assets, has been publicly shamed by the banking regulator for fraudulent accounts. Stakeholders are now aware that the bank’s standalone meagre profit of Rs 8.62 bn for the year ended...
In the first 2-3 working days of December, 2019 Asiamoney’s ‘Best Digital Bank’ for 2019 in India failed its digital customers: they were unable to log onto either the bank’s mobile application or its internet banking platform. The problem recurred on December 7. That India’s number 1 bank by...
EXECUTIVE SUMMARY. On November 29, 2019, Yes Bank finally revealed the names of the prospective investors for their US$ 2 bn equity issue. Unfortunately, 90% of the issue consisted of family offices and the 3 family offices which accounted for 85% of the issue were relatively unknown names. It...
EXECUTIVE SUMMARY. In a significant set-back, Yes Bank reported that its accounts for FY2019 were fudged: the banking regulator had detected under-reporting of non-performing loans and credit costs and over-stating of profits by the bank. This development is disturbing, as it undermines the credibility of Ravneet Gill, the new...
EXECUTIVE SUMMARY. A visit by road to some of the scenic tourist destinations in the mountainous and mainly rural state of Himachal Pradesh highlights the negligible presence of private sector banks and the sheer dominance of government banks, particularly Punjab National Bank and the banking behmoth, State Bank of...
EXECUTIVE SUMMARY. No doubt the stock market has de-rated banking behemoth, State Bank of India (SBI), since its 4QFY19 results, on account of its corporate stressed exposures. Yet we should not overlook a positive feature: the bank’s concerted effort to reduce its net deferred tax assets (DTA) from FY2019,...
EXECUTIVE SUMMARY. Since 2QFY2019, the stock market has been kind to ICICI Bank. It has rewarded the bank with a consistent rise in the share price and an equally consistent re-rating in its P/BV. With such a strong performance in the share price, the sell-side has bent backwards to...
EXECUTIVE SUMMARY. The market ignored Axis Bank’s consolidated net loss of Rs 216 mn in 2QFY2020. Though sell-side analysts were not expecting this result, they nevertheless bought the bank’s explanation that this was “one-time” in this “quarter of transition”, as deferred tax assets (DTA), which are intangible assets, were...
EXECUTIVE SUMMARY. Indusind Bank, once a hot favourite of the market and of institutional investors, is fast losing its lustre. It has fallen by around 21% in the past year, and lost around US$ 1.4 bn for shareholders. But right through this decline, while the market had concerns on...
EXECUTIVE SUMMARY. On the eve of HDFC Bank’s 2QFY2020 results (October 19, 2019), an analysis of its profitability for the last 5 years reveals that, while its ROA marginally declined as credit costs increased, it was the leveraging of operating costs which compensated to maintain the bank’s excellent profitability....
