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...
EXECUTIVE SUMMARY.
“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...
EXECUTIVE SUMMARY. A newly-appointed (on October 9, 2020) deputy governor of the Reserve Bank of India (RBI) has proposed, for discussion, that large systemically-important non-bank finance companies (NBFCs) either convert themselves into banks, or that they contract assets, in order to protect financial stability. This proposal not only has...
EXECUTIVE SUMMARY. HDFC Bank’s 1HFY2021 results is a study in contrasts to its non-bank finance company (NBFC) subsidiary, HDB Financial Services (HDB). While the standalone bank reported a 19% yoy growth in net profits, HDB’s profits collapsed by an alarming 94% yoy (HDB reports only half-yearly performance). The dichotomy...
EXECUTIVE SUMMARY. On the opening date of Vedanta’s delisting offer (October 5, 2020), ICICI Securities (I-Sec) issued a results research note on Vedanta with the following bizarre statement: “Vedanta has highlighted the SEBI approved book value (ex the revaluation reserves) of Rs 89.3/share.” I-Sec, a listed subsidiary of...
EXECUTIVE SUMMARY. Media commentators analysing the tenure (October 7, 2017 to October 6, 2020) of Rajnish Kumar as chairman of the State Bank of India , India’s largest bank by assets, have commented on the sharp decline in gross non-performing assets (GNPAs) in absolute and in percentage terms during...
In the corporate sector it is extremely rare to find a whistleblower who consistently puts out internal information on malpractices and confidential internal communication, some of it within days of its release, which highlight either malpractices or dissent within the senior ranks. Such information should be a goldmine for...
EXECUTIVE SUMMARY. Data from the Reserve Bank of India (RBI) reveal that, in the recent period of declining interest rates, while all banks have been reducing their deposit rates as well as their benchmark rates (marginal cost of fund-based lending rates), in July 2020 private sector banks have increased...
EXECUTIVE SUMMARY. US law firms, Rosen Legal, Pomerantz and Schall have filed class action suits (here, here and here) against HDFC Bank. The grounds are that HDFC Bank allegedly misled investors, provided inadequate disclosures and internal controls over financial reporting, and engaged in improper lending practices in its automobile...
