EXECUTIVE SUMMARY. The phenomenal success of HDFC Bank under the stewardship of Aditya Puri, its first CEO, had some unfortunate consequences. It led to a belief that the recipe for achieving a premium valuation was to employ larger-than-life Alpha leaders who promoted an aggressive work culture, imposed long working...
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. Yes Bank is in the news for its non-performing assets, a legacy of erstwhile founder-CEO Rana Kapoor’s reckless lending being transferred to an Asset Reconstruction Company (ARC). If and when the deal is announced, the balance sheet and the bank will be absolved of the sins of...
On December 14, 2020, Kotak Mahindra Bank (KMB) informed the exchanges that the Reserve Bank of India (RBI) had approved the appointment of Prakash Apte as non-executive chairman, Uday Kotak as managing director and Chief Executive Officer (CEO) and Dipak Gupta as joint managing director (JMD). All 3 appointments...
EXECUTIVE SUMMARY. Many cases of mis-selling by ICICI Prudential Life (IPru Life) have been highlighted by this analyst since 2018 (also here and here). The company has responded by highlighting the high and improving persistency ratios (proportion of business that is retained from the business underwritten, measured in terms...
EXECUTIVE SUMMARY. Axis Bank’s acquisition of Citibank India’s consumer finance division has been applauded by the stock market, and the bank has outperformed Nifty-50 and the Bank Nifty since the announcement.
However, Axis Bank shareholders need to be more cautious about whether the acquisition will deliver the returns that the...
EXECUTIVE SUMMARY. The Mint newspaper broke a news story on February 15, 2022 exposing how, in June 2019, RBL Bank had disbursed a high-risk loan to Sintex-BAPL. Thereafter Sintex-BAPL lent the bulk of those funds to group company Sintex Industries which enabled it to repay a Rs 2.8 bn...
EXECUTIVE SUMMARY. In order to protect its customers from mis-selling, ICICI Bank ceased the selling of traditional par and non-par life insurance policies even from its subsidiary, ICICI Prudential Life Insurance (IPru Life). However, the bank continued to sell Unit Linked Insurance Policies (ULIPs). Sadly, feedback from ICICI Bank...
Jay Kotak’s appointment comes with questions for the private banking sector, which has mostly eschewed the dynastic tendencies of old-school India Inc companies.
Jay Kotak (standing) and Manish Agarwal of the Kotak Mahindra Bank's 811 initiative. Photo: YouTube screengrabSupport Us
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On May 26, 2022, a...
EXECUTIVE SUMMARY. Indusind Bank shareholders are paying a heavy price for senior executive-level reorganisation in Bharat Financial Inclusion (BFI), which backfired as disgruntled BFI seniors blew the whistle on alleged evergreening. Meanwhile the corporate division of the bank has being undergoing a similar drastic reorganisation.
For some years this analyst...
