EXECUTIVE SUMMARY. Despites the paeans of self-praise in annual reports, exposé after exposé by the media reveal the abysmal state of corporate governance in private financial capital. The latest in these revelations by ET Prime is how Yes Bank disbursed a Rs 5.12 bn loan to Oyster Buildwell, an...
EXECUTIVE SUMMARY
The deadline (December 31, 2018) for Uday Kotak, the founder-CEO of Kotak Mahindra Bank (KMB), to dilute his stake to 20% has come and gone, and shareholders await the wrath of the banking regulator.
The regulator had already given an extended time line for the founders to reduce their stake, a...
On the one hand, Kotak Mahindra Bank (KMB) is proudly broadcasting to shareholders its thoughts on the virtues of corporate governance, and how the bank is more than merely conforming to the letter of the law. At the same time, a notice to KMB shareholders seeking approval to re-appoint...
Forecasts for financial institutions have to take into account the coming of a new chief executive officer (CEO). Some new CEOs have presented shocking results in their first year. Robust profits of previous years have suddenly evaporated, replaced by marginal profitability or even losses.
New-CEO-New-Accounts-15-June-99Download
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. Two long serving senior executives of HDFC Bank who headed important business verticals have abruptly quit the bank, reportedly under unusual circumstances. Abhay Aima (Group Head – Private Banking), quit sometime in FY2020, while Ashok Khanna (Group Head – Secured Vehicle Loans) left in early FY2021. Aima,...
Hemindra Hazari
Rising net deferred
tax assets (DTA) in a scenario of stagnant and depressed net profits is not a
healthy sign in some of the banks, as current years’ net profits get enhanced
while sometime in the future the net DTA will get reversed impacting future net
earnings. This trend is visible in...
The unseemly public jostling between India’s central bank and the government of India casts a poor light on both institutions. Adhering to unrealistic fiscal deficit constraints has compelled the government to plunder public institutions such as the Life Insurance Corporation of India, ONGC and now the Reserve Bank of...
Indusind Bank, one of the stock market darlings and foreign investor
favourites, startled the capital market with a mere 5% rise in net earnings.
Earnings rose to Rs 9.2 bn for the quarter ended September 30, 2018 (2QFY2019),
as compared with the consensus estimate of Rs 11 bn. This was on account...
EXECUTIVE SUMMARY. Most private sector banks withhold the remuneration details of senior executives in the annual reports. However, shareholders can specifically request this disclosure from companies. The remuneration disclosure provides valuable information on the quantum of monetary compensation, revealing how senior managers have been appraised and compensated.
In Indusind Bank,...
