Hemindra Hazari
There are high hopes that Urjit Patel, the new RBI governor will act to revive bank lending and thereby do his bit for the economy. But that would require him to make the right diagnosis in the first place. The recently released RBI Annual Report at least shows no sign...
EXECUTIVE SUMMARY. An internal memo of an anonymous former senior official of ICICI Bank’s risk management department, publicised by the Indian Express, provides a damning indictment of the credit appraisal and monitoring processes at the bank. It reveals how basic banking processes were violated, and public and shareholder funds...
EXECUTIVE SUMMARY. ICICI Bank posted strong results for 4QFY2021 with standalone net profits up 260% yoy, but 11% down qoq to Rs 44 bn. While the analyst consensus and the capital market may view the results as a positive, investors need to monitor the bank’s focus on mortgages, which...
For the last 5 years, the profitability of HDFC Bank, India’s largest
bank by market capitalisation, has declined even though its critical net
interest margin (NIM) has remained constant. Interestingly, to maintain its
pristine margin, the bank has focused on taking on more risk in the form of
unsecured retail loans. Such a...
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. 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...
The author acknowledges the contribution of Aspects of India’s Economy (RUPE) for this article
EXECUTIVE SUMMARY. There was a sharp rise in corporate India’s external commercial borrowings (ECB) during the past financial year. Outstanding ECBs for December 2019 rose $ 29 bn y-o-y, to $ 223 bn, or 40% of...
In an earlier insight, More Transparency Was Expected From HDFC Regarding Its Reliance Naval Exposure, on April 19, 2018, this writer had cautioned that RNE was a problem account in the industry and that most banks in the consortium would be classifying the account as a NPA.
On April...
