Hamsini Karthik

All stories by Hamsini Karthik

AU SFB has to pass asset quality test: Analysts

AU SFB has to pass asset quality test: Analysts

Rediff.com13 Apr 2021

Despite a shaky Q3, conviction over the stock remained high, with 65 per cent of the analysts polled on Bloomberg retaining their 'buy' recommendation.

Corporate bond yields may come under pressure over AT-1 bond rule

Corporate bond yields may come under pressure over AT-1 bond rule

Rediff.com22 Mar 2021

This is a key reason for the finance ministry's objection to fixing the tenure at 100 years, as it is pushing PSBs to be self-dependent and raise funds from the market, reports Hamsini Karthik.

After nearly 13 years, brokerages are betting big on PSBs

After nearly 13 years, brokerages are betting big on PSBs

Rediff.com16 Mar 2021

It is nearly after 13 years that a foreign brokerage has resumed holistic coverage on stocks of public sector banks (PSBs). To that extent, Morgan Stanley's report dated March 3, where the analysts have listed their order of preference for PSB stocks, is an indication that the state-owned banks may once again be attracting some interest, thanks to three back-to-back quarters of good results in FY21 so far. "State-owned banks' balance sheets have improved, and bad loans formation should moderate going forward," the analysts note and this is the key reason for them to relook at their stance on PSBs. While State Bank of India (SBI) remains their preferred pick, stocks of Bank of Baroda (BOB) and Punjab National Bank (PNB) have been upgraded from 'underweight' to 'equal-weight'. The brokerage maintains its underweight recommendation on Bank of India and Canara Bank.

How IL&FS crisis has impacted non-banking finance companies

How IL&FS crisis has impacted non-banking finance companies

Rediff.com5 Mar 2021

For non-banks, the IL&FS crisis was nothing short of India's Lehman moment, which has for a foreseeable future reset the sector on multiple grounds.

Does India need a Bad Bank?

Does India need a Bad Bank?

Rediff.com3 Feb 2021

'The concern that the bad bank may create a moral hazard for the system is extremely valid.'

Retail and SME loans set for litmus test in 2021

Retail and SME loans set for litmus test in 2021

Rediff.com21 Jan 2021

Banks such as IndusInd Bank, Federal Bank, DCB Bank and Axis Bank which have renewed their focus on secured loans may be, hence, walking on a tightrope.

Why the bid war for DHFL may well end up being a curse for the winner

Why the bid war for DHFL may well end up being a curse for the winner

Rediff.com8 Jan 2021

While the lender has Rs 17,000 crore of retail assets and land parcels in Juhu, Borivali, Worli, and Chembur in Mumbai, there may be a disconnect between the quality of DHFL's books and the value bidders ascribe to it.

Why bank branches are important even in Digital India

Why bank branches are important even in Digital India

Rediff.com6 Jan 2021

Despite the increasing adoption of digital transactions in the past three to five years, brick-and-mortar interaction across geographic catchments remains a potent distribution channel. Though the functions of a branch may have not changed in years, their focus has shifted from transaction to customer retention.

I-Pru Life: Retail focused portfolio, no investment risks augur well

I-Pru Life: Retail focused portfolio, no investment risks augur well

Rediff.com4 Jan 2021

The life insurer tinkered with its business strategy - raised the share of protection plans and reduced dependency on ULIPs in the past four years.

Are PSBs mispriced stocks or value trap?

Are PSBs mispriced stocks or value trap?

Rediff.com21 Dec 2020

Reports suggest state-owned banks have lapped up Rs 40,000 crore, so far, using both bonds and equity instruments. The question, though, is whether there will be a perceptional change for PSB stocks.

Why PEs may be better source of capital for banks

Why PEs may be better source of capital for banks

Rediff.com16 Dec 2020

India may adopt norms similar to the US Federal Reserve model, which regulates conglomerate-led banks in the country.

Why sustaining past momentum can be challenging for HDFC Bank

Why sustaining past momentum can be challenging for HDFC Bank

Rediff.com15 Dec 2020

With slippages increasing every quarter, any derailment on growth or change in customers' repayment behaviour after moratorium may impact the overall asset quality. Correction, though, presents attractive buying opportunities, given the bank's sustained leadership position.

Lakshmi Vilas Bank may decide on proposed meVB

Lakshmi Vilas Bank may decide on proposed meVB

Rediff.com6 Nov 2020

With a potential liability of Rs 750-800 crore, sources say Clix Capital's stand on the matter would be crucial in finalising the merger valuation.

Faster deposit growth may not bring cheers to banks

Faster deposit growth may not bring cheers to banks

Rediff.com13 Oct 2020

Should deposit growth continue to outpace credit growth, banks may end up ceding some hard-earned 25-50 bps improvement in profitability or net interest margin gained in the past two years.

Watch out for these five banking stocks!

Watch out for these five banking stocks!

Rediff.com12 Aug 2020

The coming years could be exciting for Bandhan Bank, IDBI Bank, IDFC First Bank, Federal Bank, and CSB Bank.

How sentiments have changed for banks

How sentiments have changed for banks

Rediff.com2 May 2020

Morgan Stanley removed banking stocks from its model portfolio when it slashed its weighting on the sector by 500 basis points. Several foreign brokerages, such as UBS, JP Morgan, and Credit Suisse, of late, have also become less optimistic about banking stocks.

Yes Bank's additional tier-1 bondholders plan legal action

Yes Bank's additional tier-1 bondholders plan legal action

Rediff.com7 Mar 2020

With the Reserve Bank of India's (RBI's) draft reconstruction scheme for the troubled lender suggesting a permanent write-down of these bonds outstanding as of March 5, bondholders who have invested RS 10,800 crores are up in arms, reports Hamsini Karthik.

Challenges mount for India's costliest banking stock

Challenges mount for India's costliest banking stock

Rediff.com24 Dec 2019

While the overall loan disbursements stood strong at 15 per cent YoY in Q2, pockets such as vehicle finance, loans to NBFCs, and business banking showed some weakness. A continued fall in these numbers may make it tough for AU SFB to defend its valuations under the current circumstances.

Will Voltas manage to defend its market share?

Will Voltas manage to defend its market share?

Rediff.com24 Dec 2019

International brands such as Daikin, Hitachi and Samsung, which were largely present in the premium products range, are getting aggressive on expanding their mid-range portfolios to penetrate into smaller cities and towns. While competition isn't hurting Voltas just yet, which has managed to retain its market share at 24.4 per cent as of September 30 (Q2), the main question is whether the company can defend its market share without compromising on profitability.

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