Research

EXECUTIVE SUMMARY. April 1, 2020, All Fools Day, the first day of FY2021, was an eventful day for Kotak Mahindra Bank (KMB) shareholders, as the share price fell an alarming 9% as compared with a NIFTY-50 decline of 4% and the NIFTY Bank fall of 5%. What should be...

Indusind-Bank-Fiasco-and-the-Sleeping-Sentinels-1Download

EXECUTIVE SUMMARY. The savage mauling of Indusind Bank’s share price in the last year, and especially in the last month, is a reflection of the unravelling of the bank’s high-risk asset and fee growth strategy.  A bank which use to trade at 5x P/BV is currently reduced to being...

EXECUTIVE SUMMARY. In the SBI-led bail-out of Yes Bank assisted by private sector entities, HDFC Bank, the largest private sector bank, is notably absent, as is Indusind Bank. Stranger still, much smaller banks like Bandhan Bank, Federal Bank and IDFC First have decided to come to the rescue of...

EXECUTIVE SUMMARY. Yes Bank reported a staggering consolidated net loss of Rs 191 bn ($2.6 bn) for the 9 month period ended December 31, 2019 (for 3Q FY2020 the net loss was Rs 185.6 bn). However, even this is understated on account of the huge increase in the deferred...

In light of the moratorium on Yes Bank on March 6, 2020, Smartkarma compiled my research notes from May 15, 2017 where I had consistently highlighted my concerns on the bank to create this ebook. Special-Report-How-Independent-Research-Found-a-Fatal-Flaw-with-Yes-BankDownload

EXECUTIVE SUMMARY. The Reserve Bank of India’s (RBI)  draft scheme  for the reconstruction of Yes Bank is unlikely to restore the confidence of the bank’s depositors, especially its current and savings account (CASA) depositors, who are likely to desert the bank once the moratorium is lifted. Once a bank...

EXECUTIVE SUMMARY. On February 27, 2020 the Reserve Bank of India finally approved Sumant Kathpalia as the CEO who will succeed Romesh Sobti when the latter retires on March 23, 2020. Kathpalia, who has a background in consumer finance and wealth management, will be taking charge of a bank which is facing stiff...

EXECUTIVE SUMMARY. The succession fiasco at HDFC Bank reveals how the banking regulator has allowed a promoter with a minority stake to have a stranglehold on the selection of the chief executive officer (CEO) and the chairman of the bank. Strangely, the board of the bank has to...

EXECUTIVE SUMMARY. In a surprise capitulation, the Reserve Bank of India (RBI) has relaxed  its rules regarding the ceiling on the percentage of shares held by founders of a private bank. But it has carved out this exception for just one bank, Kotak Mahindra Bank (KMB), which has been...