Hemindra Hazari 23/MAY/2017
Recently, Axis Bank and Yes Bank jolted the Indian banking community while releasing their annual results. Both banks disclosed a staggeringly large divergence between the banks’ audited accounts and the Reserve Bank of India’s (RBI) findings regarding bad loans on the books of these banks...
EXECUTIVE SUMMARY. HDFC Bank’s low-cost liabilities strategy of focusing on huge numbers of new client acquisitions in the semi-urban and rural centres may be getting large numbers of new customers, but is not resulting in significant growth in current and savings account deposits (CASA). The pressure on CASA appears...
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...
With the help of a whistleblower, the Rajasthan police is prosecuting cases of insurance schemes mis-sold by ICICI as fixed deposits to unsuspecting customers. But the country's insurance and banking regulators don't seem bothered.
Victims narrate their stories about how they were mis-sold insurance policies. Credit: Insurance Angels
Hemindra Hazari ...
EXECUTIVE SUMMARY. Even though non-bank finance companies (NBFCs) dedicated to providing loans against gold ornaments are highly profitable and enjoy significant net interest margins (NIMs), stakeholders should be concerned about the vulnerability of their branches to robberies. The spate of robberies indicates that thieves are specifically targeting branches because...
EXECUTIVE SUMMARY. Indusind Bank not only declared 4QFY2019 results far below consensus expectations, but FY2019 net profits have been inflated by a significant increase in net deferred tax asset (DTA). As usual, the business media and sell-side analysts have ignored the significance of the rise in DTA in inflating...
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...
Contrary to the expectations of life insurance deregulation, some of the large private companies have established their business model on ULIPs, a mutual fund product and in doing so sacrificed the objective of raising genuine life insurance and long-term savings for the economy. In retrospect, the liberalisation of the life insurance sector provided a license to open a casino.
The Gurgaon Sessions Court on March 10, 2017 delivered its verdict in the Maruti Suzuki rioting and arson case of July 22, 2012 at the company’s Manesar (Haryana state) factory which claimed the life of its human resources general manager, Awanish Kumar Dev and caused widespread destruction at the facility....
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
On February 9, 2018, a sad day dawned in the history of Indian banking. The State Bank of India, the government’s premier bank and India’s most prestigious, reported that...
