EXECUTIVE SUMMARY. All indicators point to a disturbing slowdown in India’s economy in recent months: the Index of Industrial Production, the Purchasing Managers’ Index, the fixed investment rate, and even GDP. Farm prices have collapsed, resulting in negative growth in value added in agriculture; real rural wages have slumped;...
It seems miracles
do happen. The lame walk, the dying return to life, the blind see – well, maybe
not the last, if they are sell-side analysts and the business media, in which
case they keep their eyes closed for life. Had they attempted a close analysis
of Yes Bank’s 4QFY2018 results, they...
Directors’ role on company boards has become more complex and demanding, especially for independent directors. Increasingly they have to monitor and manage diverse stakeholders’ interest, instead of being primarily focused on protecting shareholders‘ interests and expectations. With regard to banks, this was borne out when an independent director of...
EXECUTIVE SUMMARY
The Central Bureau of Investigation (CBI), India’s premier federal police investigation agency, finally filed a First Information Report (FIR) and charged Chanda Kochhar, former CEO, ICICI Bank, her husband, Deepak Kochhar and V. N. Dhoot, managing director, Videocon Group, with cheating ICICI Bank in the Rs 32.5 bn Videocon loan...
EXECUTIVE SUMMARY. The stock market has responded euphorically to India’s central government budget for the fiscal year 2021-22 (April-March). The question is: does this indicate that investors anticipate a revival of investment, employment, and GDP growth? Paradoxically, it may not. While investment in the macroeconomic sense may not increase,...
Compliance with the formal corporate governance code will be incorporated in FY2001 annual reports. investors should not be dismayed by the lack of a corporate governance structure or conversely, lower their guard at elaborate corporate governance norms. Our report reveals that substance (eg, the importance of truly independent directors)...
EXECUTIVE SUMMARY. No doubt the stock market has de-rated banking behemoth, State Bank of India (SBI), since its 4QFY19 results, on account of its corporate stressed exposures. Yet we should not overlook a positive feature: the bank’s concerted effort to reduce its net deferred tax assets (DTA) from FY2019,...
EXECUTIVE SUMMARY
Indusind Bank’s reckless decision to provide a Rs 20 bn (8% of the bank’s capital) unsecured bridge loan to IL&FS, an insolvent infrastructure company has led to a significant de-rating of its valuation multiple. In the 3QFY2019 results call, Ramesh Sobti, the bank’s CEO believes that the bank...
Sunlight is said to be
the best disinfectant; it is also considered fatal for vampires. Whatever be
the reason, the ICICI Bank board has decided to take no chances of the
slightest ray falling on its murky recesses. It has appointed a complete
insider to replace Chanda Kochhar, the bank’s CEO-under-investigation.
Ms Kochhar, who...
