All stories by Hamsini Karthik
IL&FS case reveals what India's resolution mechanism is lackingRediff.com1 May 2021
The infra-major going belly up cracked open some major flaws in the system - the most evident being weak corporate governance and how layers of corporate structures could be formed adding to the opaqueness of the group.
AU SFB has to pass asset quality test: AnalystsRediff.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 ruleRediff.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 PSBsRediff.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 companiesRediff.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?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 2021Rediff.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 winnerRediff.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 IndiaRediff.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 wellRediff.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?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 banksRediff.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 BankRediff.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 meVBRediff.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 banksRediff.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!Rediff.com12 Aug 2020
The coming years could be exciting for Bandhan Bank, IDBI Bank, IDFC First Bank, Federal Bank, and CSB Bank.
Jio Platforms: What's next on Mukesh Ambani's mind?Rediff.com27 May 2020
How sentiments have changed for banksRediff.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 actionRediff.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 stockRediff.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.