EXECUTIVE SUMMARY. A commendable feature in Yes Bank’s 3QFY2021 results declared on January 22, 2021 was the continued level of transparency made available to investors on its asset quality, despite reporting the inevitable huge increase in stress loans. Around 30% of private sector banks loans were under the Covid-19-induced...
EXECUTIVE SUMMARY. On January 7, 2021 the Reserve Bank of India (RBI) issued instructions to commercial banks to safeguard the independence and competence of the internal audit function, and laid down norms for the functioning of the department and the appointment of the head of internal audit. While it...
EXECUTIVE SUMMARY. In the last 7 1/2 years private sector banks have increased their market share in overall deposits and credit in the industry. More importantly, in the critical metropolitan (population 1 mn+) areas, which account for the majority of banking business, their gains have been even higher. Government...
EXECUTIVE SUMMARY. Nearly a year after Axis Bank truncated the responsibilities of its Chief Risk Officer (CRO) by transferring corporate credit risk to the role of the newly created Chief Credit Officer (CCO) who reported only to the CEO, HDFC Bank has decided to go a step further. It...
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. It was unfortunate that HDFC Bank decided to provide selective disclosure at a conference call hosted by Jefferies. Only 63 institutional investors participated on the evening of December 9, 2020, where the bank publicly disclosed what went wrong at its recent digital outages. More importantly, in the...
EXECUTIVE SUMMARY. The Reserve Bank of India’s (RBI) decision to temporarily put a halt to all digital launches of HDFC Bank’s financial products and also cease all new issuances of credit cards by the bank brings to the fore the huge reputational risk on account of the bank ignoring...
EXECUTIVE SUMMARY. Despite ICICI Prudential Life Insurance (IPru Life) reporting improvement in long-term persistency ratios, there are worrying examples of brazen mis-selling of life insurance policies by the company through its corporate agent, Angel Financial Advisors and even its parent, ICICI Bank. The cases of two 21-year old customers...
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...
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“What is the robbing of a bank compared to the founding of one?” – Bertolt Brecht
An internal working group (IWG) of the Reserve Bank of India (RBI) to review ownership guidelines and corporate structure for Indian private sector banks has recommended that large industrial houses be allowed...
