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Research reports published by Hemindra Hazari.

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...
EXECUTIVE SUMMARY. The market has not been kind to Axis Bank after its 1QFY2020 results. The share price has fallen 7%, as compared with a fall in the NIFTY of only 2%.  While analysts have raised concerns on the elevated credit costs and high slippages to gross...
EXECUTIVE SUMMARY. Problem: You are a leading sell-side analyst. What do you do when confronted with valuable, authoritative, and hitherto confidential information about India’s leading banks? A. Highlight it. B. Analyse it and publish a research report...
EXECUTIVE SUMMARY. Recently, the Reserve Bank of India (RBI) was forced to disclose its confidential inspection reports, called Risk Assessment Reports (RARs), of the State Bank of India (SBI), HDFC Bank, ICICI Bank and Axis Bank for the years FY2013 to FY2015. Shockingly, among the four banks,...
EXECUTIVE SUMMARY. Under the threat of being pulled up for contempt of court by the Supreme Court of India, the Reserve Bank of India (RBI) finally disclosed the confidential inspection reports, called Risk Assessment Reports, of some banks requested under the Right to Information Act (RTI), 2005....
EXECUTIVE SUMMARY. The appalling record of incompetence, and likely worse, by India’s credit rating agencies (CRAs) continues to lengthen. The latest instance is the double default of commercial debt obligations (on June 27 and July 1, 2019) by Cox and Kings, a tour and travels services company....
EXECUTIVE SUMMARY. The resignation of Viral Acharya, deputy governor, Reserve Bank of India (RBI) six months before his term was to end, was preceded by the resignation of Urjit Patel. Earlier, Raghuram Rajan failed to get a second term as RBI governor. However, these developments did not...
EXECUTIVE SUMMARY. On June 14, 2019, Tech Mahindra joined the ranks of Tata Global Beverages, Ambuja Cement and Dr Reddy’s in appointing Shikha Sharma as an independent director. Private equity firm KKR had also appointed Sharma as an adviser for their alternative investments. The irony of publicly-owned...
EXECUTIVE SUMMARY. In a stunning rebuke to audit firm S.R. Batliboi (SRB), a member firm of Ernst & Young, the Reserve Bank of India (RBI) barred the firm from taking any bank audit for 1 year commencing from April 1, 2019. The public humiliation of a leading...
EXECUTIVE SUMMARY. While the market is commending banks like ICICI and Axis Bank for cleaning up their balance sheets with aggressive loan loss provisions, what is being ignored is the role played by net deferred tax assets (DTA) in partly neutralising the impact of the provisions. DTA...