Raghu Mohan

All stories by Raghu Mohan

Why are foreign banks marching out of retail banking?

Why are foreign banks marching out of retail banking?

Rediff.com27 Mar 2022

Foreign banks set the template in consumer banking in its infancy, but have almost vacated this booming space.

Will the entry of PEs into banks lead to better governance?

Will the entry of PEs into banks lead to better governance?

Rediff.com24 Mar 2022

Private equity (PE) is set to play a bigger role in banks. Of 21 recommendations accepted by the Reserve Bank of India (RBI) out of 31 made by its Internal Working Group (IWG), its stance on non-promoter holdings in private banks is seen with excitement, though it doesn't refer to PEs explicitly. On non-promoter holdings in these banks, the RBI said this will be capped at 10 per cent of the paid-up voting equity share capital in the case "of natural persons and non-financial institutions and entities"; and "at 15 per cent for all categories of financial institutions, entities, supranational institutions, public sector undertaking, or the government." While this is a modification of the IWG's stance for the non-promoter holding in banks at up to 15 per cent, it does open up a huge window for PEs, all the same. This is because, while the RBI has remained silent on the eligibility of industrial houses for bank licences, fresh high-quality capital in large amounts can only come from PEs.

Tighter dud-loan norms: Shadow banks brace for headwinds

Tighter dud-loan norms: Shadow banks brace for headwinds

Rediff.com7 Feb 2022

On November 12, 2021, the Reserve Bank of India (RBI) decided to ring in uniformity in asset classification and income recognition across all lending institutions. Shadow banks, or non-banking financial companies (NBFCs), like commercial banks, are to test non-performing assets (NPAs) on a daily basis and upgrade them to "standard assets" only when interest and principal arrears are settled by borrowers. This is going to create all manner of headaches for shadow banks and their clientele. Says Y S Chakravarti, managing director and chief executive officer (CEO), Shriram City Union Finance: "NPA levels will go up, especially of small borrowers.

'For digital lending, trust is important'

'For digital lending, trust is important'

Rediff.com19 Nov 2021

'The digital trust level has drastically gone up due to Covid, not only in tier-I and II cities, but also in tier-III, IV and V geographies,'

Door Looks SHUT For Corporate Run Banks

Door Looks SHUT For Corporate Run Banks

Rediff.com29 Sep 2021

It may be a 'no-go' for banking licences to large industrial houses.

HDFC Bank's S Jagdishan: 'Not a P&L person'

HDFC Bank's S Jagdishan: 'Not a P&L person'

Rediff.com8 Jul 2021

'He's at best a holding-CEO. Not one who will re-imagine the bank,' a senior banker and former colleague tells Raghu Mohan about HDFC Bank CEO & MD Sashidhar Jagdishan.

'Private equity can transform banks'

'Private equity can transform banks'

Rediff.com22 Mar 2021

'Facilitating conversion of well-run NBFCs into banks is urgently needed.'

PMC Bank suitors face additional capital rider

PMC Bank suitors face additional capital rider

Rediff.com16 Mar 2021

Suitors for Punjab and Maharashtra Co-operative Bank (PMC Bank) may have to infuse additional capital of nearly Rs 750 crore so that the payout per depositor is more than the Rs 5 lakh sum assured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Reserve Bank of India (RBI) has also slotted its board meeting on March 19 in Mumbai - a fortnight short of the current deadline to find a resolution for the beleaguered bank and the moratorium placed on it comes to an end. Sources close to the PMC Bank transaction said that the central bank wants the suitors "to go the extra mile so that depositors can get more than the Rs 5 lakh insured by the DICGC". This is also to ensure that the new owners of the bank - who are to be issued a small finance bank (SFB) licence - are serious and have deep pockets.

What does merger with LVB mean for DBS Bank chief Piyush Gupta?

What does merger with LVB mean for DBS Bank chief Piyush Gupta?

Rediff.com2 Dec 2020

While Gupta, 60, can rightfully bask in the glory he has achieved for his bank in the subcontinent, his peers in foreign banks will have to revisit their India play, especially the local incorporation model, says Raghu Mohan.

How banking system changed post Nirav Modi scam

How banking system changed post Nirav Modi scam

Rediff.com26 Nov 2020

'If you give your ID and password to somebody else, how can anybody blame the technology for that problem?'

Madurai boy Anand Selvakesari is breaking the mould at Citigroup

Madurai boy Anand Selvakesari is breaking the mould at Citigroup

Rediff.com19 Nov 2020

A career Citibanker, 'Selva' came into the spotlight as the person who rewired the financial behemoth's Indian retail operations.

There's more to bank frauds than meets the eyes

There's more to bank frauds than meets the eyes

Rediff.com21 Sep 2020

A common feature in India is the lag between the occurrence of frauds and the time they are actually reported.

MFIs' collections rebound in a big way, but delinquencies may surge

MFIs' collections rebound in a big way, but delinquencies may surge

Rediff.com8 Sep 2020

A vast majority of borrowers are in the essential services' supply chain with tiny and micro businesses, and this has sprung back.

How Aditya Puri 'built' the HDFC Bank

How Aditya Puri 'built' the HDFC Bank

Rediff.com14 Aug 2020

Puri gave up the comforts of Citibank to set up a new-age bank from a rat-infested room in the Kamala Mills Compound in Worli, Mumbai and build a marquee brand. A look at his 26-year stint as HDFC Bank's boss.

RBI readies plan to check health of banks

RBI readies plan to check health of banks

Rediff.com29 Jun 2020

The central bank has not set a deadline for banks to conclude the stress-test exercise, but senior bankers opine that some were already looking at this, and will now fast-track it by September-end, when they will have a better picture of their books after the moratorium on the servicing of loans and a 180-day view on the performance of borrowers' accounts.

RBI eases targets for white-label ATM firms

RBI eases targets for white-label ATM firms

Rediff.com17 Jun 2020

The poor deployment of WLATMs has tripped what the central bank sought to achieve back in 2012.

The rise and mighty fall of Rana Kapoor

The rise and mighty fall of Rana Kapoor

Rediff.com6 Apr 2020

'What made him different was that he was not a banker at all by temperament.' 'He was a businessman, a typical lalaji at that.' 'He had to win at any cost.'

Officers cold to oversight cadre, RBI faces staff turmoil

Officers cold to oversight cadre, RBI faces staff turmoil

Rediff.com27 Jan 2020

The deadline for officers to decide on their career path in the biggest organisational rejig in the central bank's 85-year history ends on January 31. The immediate fallout could be its disruptive impact on the supervisory process for 2020 -- and beyond -- given the manpower shortfall, even as more entities are set to come under closer central bank scrutiny.

Why RBI officers are peeved with the central bank

Why RBI officers are peeved with the central bank

Rediff.com29 Nov 2019

RBI's oversight cadre move creates HR trouble, officers threaten agitation.

Bank mergers and death of forex brokerages

Bank mergers and death of forex brokerages

Rediff.com3 Oct 2019

Business is down to such an extent that last year these firms could not even meet RBI's capital norm of Rs 50 million for partnerships and Rs 100 million for public and private firms in this line of business.

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