Specialist in Indian Banking and Economic Research

Hemindra Hazari

Equity Bottom-Up

YES BANK Limited provides banking services. The Bank offers deposits, personal loans, e-banking, trade finance, corporate, and business banking services. YES BANK serves the food and agribusiness, life sciences, healthcare, biotechnology, telecommunications, media, information technology, and infrastructure development industries in India.

<ul>
<li>Reconstructed board of Yes Bank implemented an ill-conceived, poorly executed retail strategy to revive the bank</li>
<li>Structural problem of low net interest margin and high overheads not resolved</li>
<li>Retail assets strategy characterised by low yield, high operating cost and rising credit cost which the bank has finally acknowledged</li>
</ul>


Reconstructed board of Yes Bank implemented an ill-conceived, poorly executed retail strategy to revive the bank
Structural problem of low net interest margin and high overheads not resolved
Retail assets strategy characterised by low yield, high operating cost and rising credit cost which the bank has finally acknowledged


Yes Bank’s Retail Therapy Proves Expensive

Axis Bank Limited provides a full range of banking services throughout India. The Group's activities include retail banking, investment management, merchant banking, treasury and NRI services, cash and credit management services, and ATM facilities.

<ul>
<li>Sudden resignation of Ravi Narayanan Group-Head in charge of retail branches, retail liabilities and third party products as he wishes to pursue entrepreneurship.</li>
<li>Possible explanation is that the bank like other banks is finding it difficult to raise retail deposits and pressure is building up on senior management</li>
<li>Bank has a high LDR and reportedly the banking regulator is demanding the bank to lower its LDR. This will have consequences on future loan growth or on NIM</li>
</ul>


Sudden resignation of Ravi Narayanan Group-Head in charge of retail branches, retail liabilities and third party products as he wishes to pursue entrepreneurship.
Possible explanation is that the bank like other banks is finding it difficult to raise retail deposits and pressure is building up on senior management
Bank has a high LDR and reportedly the banking regulator is demanding the bank to lower its LDR. This will have consequences on future loan growth or on NIM


Axis Bank Incubates a New Entrepreneur -- Its Head of Retail Branches

<ul>
<li>Axis Capital is a 100% subsidiary of <a href="https://www.smartkarma.com/entities/axis-bank-ltd" target="_blank" data-smartkarma-citation="entities:768:1" rel="noopener">Axis Bank Ltd (AXSB IN)</a> and one of its businesses is structured finance</li>
<li>The Sojo Infotel is a high-risk transaction undertaken by Axis Capital which was underwritten by the company with the implicit support of the bank as per the credit rating agency</li>
<li>When the transaction was done it was 50% of Axis Capital's equity and default risk is high as the redemption date is on March 25, 2024</li>
</ul>


Axis Capital is a 100% subsidiary of Axis Bank Ltd (AXSB IN) and one of its businesses is structured finance
The Sojo Infotel is a high-risk transaction undertaken by Axis Capital which was underwritten by the company with the implicit support of the bank as per the credit rating agency
When the transaction was done it was 50% of Axis Capital's equity and default risk is high as the redemption date is on March 25, 2024


Is Axis Capital an Investment Bank or a Hedge Fund?

IndusInd Bank Limited is a Mumbai-based Indian new generation bank established in 1994. The Bank provides a range of banking and financial services including  wholesale banking, credit monitoring, risk management, tele-banking, investment banking and commercial lending. IndusInd Bank operates branches throughout India as well as an office in Dubai and London.

<ul>
<li>The rejection by shareholders of an independent director's re-appointment reveals the growing influence of proxy advisory firms on institutional investors</li>
<li>Indian corporate boards appear ill-prepared to engage with stakeholders to provide valuable feedback </li>
<li>Stakeholders Relationship Committee of the Board needs to reactivated and re-oriented to engage with stakeholders to improve governance</li>
</ul>


The rejection by shareholders of an independent director's re-appointment reveals the growing influence of proxy advisory firms on institutional investors
Indian corporate boards appear ill-prepared to engage with stakeholders to provide valuable feedback 
Stakeholders Relationship Committee of the Board needs to reactivated and re-oriented to engage with stakeholders to improve governance


Need to Reactivate the Stakeholders’ Relationship Committee in the Wake of the IndusInd Bank Fiasco

Vedanta Resources Limited operates as a diversified natural resource company. The Company extracts and process zinc, lead, aluminum, iron ore, copper, and silver, as well as focuses on oil and natural gas. Vedanta Resources serves clients worldwide.

<ul>
<li>Market concern on company's redemption of Bonds of $ 3 bn in 2024 </li>
<li>Liquidity gap for company is much larger estimated at nearly $11 bn</li>
<li>Company needs to raise long term funds and/or divest assets to raise the required amount</li>
</ul>


Market concern on company's redemption of Bonds of $ 3 bn in 2024 
Liquidity gap for company is much larger estimated at nearly $11 bn
Company needs to raise long term funds and/or divest assets to raise the required amount


Vedanta Resources: $3 Bn Bonds Maturity Is Just the Tip; the Iceberg Is Nearly $11 Bn.

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.