EXECUTIVE SUMMARY. On April 23, 2020, Franklin Templeton India (FTI) took the unprecedented step of winding up its six debt mutual fund schemes. The Securities and Exchange Board of India (SEBI) then ordered a confidential audit report on this fiasco. Excerpts of the report have now appeared in the...
EXECUTIVE SUMMARY. A noteworthy feature in the 3QFYGDP estimate is its dubious credibility, as indirectly admitted by the official statistical agency itself. In the 1QFYGDP and 2QFYGDP, while the National Statistical Office (NSO) had acknowledged that, on account of the lockdown, the estimates are “likely to undergo revisions” the...
EXECUTIVE SUMMARY. The capital markets continue to reward private sector banks with rich valuations, benefitting shareholders. But larger stakeholders such as bank customers are registering a steep increase in complaints to the banks’ ombudsman. For the year July 1, 2019 to June 30, 2020, customer complaints (per branch and...
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,...
EXECUTIVE SUMMARY. In a significant event, Deepak Parekh, the non-executive chairman of HDFC, agreed to settle with the Securities and Exchange Board of India (SEBI) in connection with the latter’s investigation of non-compliance with the erstwhile Listing Agreement. Parekh settled the issue by paying Rs 937,500 (US$ 12,727) to...
EXECUTIVE SUMMARY. Despite reporting a 36% yoy fall in 3QFY2021 net profits and being below consensus estimates, Axis Bank’s share price on January 28, 2021 closed 6% up, while the Nifty-50 declined by 1%. The strong and positive response to the bank’s results was surprising, as Axis Bank declined...
EXECUTIVE SUMMARY. A commendable feature in Yes Bank’s 3QFY2021 results declared on January 22, 2021 was the continued level of transparency made available to investors on its asset quality, despite reporting the inevitable huge increase in stress loans. Around 30% of private sector banks loans were under the Covid-19-induced...
EXECUTIVE SUMMARY. On January 7, 2021 the Reserve Bank of India (RBI) issued instructions to commercial banks to safeguard the independence and competence of the internal audit function, and laid down norms for the functioning of the department and the appointment of the head of internal audit. While it...
EXECUTIVE SUMMARY. In the last 7 1/2 years private sector banks have increased their market share in overall deposits and credit in the industry. More importantly, in the critical metropolitan (population 1 mn+) areas, which account for the majority of banking business, their gains have been even higher. Government...
EXECUTIVE SUMMARY. Nearly a year after Axis Bank truncated the responsibilities of its Chief Risk Officer (CRO) by transferring corporate credit risk to the role of the newly created Chief Credit Officer (CCO) who reported only to the CEO, HDFC Bank has decided to go a step further. It...
