India Morning Report: State Bank and Maruti not the best indicators for India Inc

State Bank of India was feted for its increasing NPAs as fresh additions stoppd at a huge INR 80 Bln instead of INR134 Bln in the linked quarter and again markets celebrate banks that fail to provision correctly, while punishing the good PNB for the same. I would switch that PSU bank trade to PNB

India Morning Report: Unfolding Political Drama alienates Capital investment opportunities

  The surprising and unfortunate saga of the returning bout of political stability that landed last week has caused India inc some serious heartburn as market mirrors waning confidence levels of corporate India which was looking at raising cheaper money and deploying into new industry and infrastructure this year. Though observers still stand on the

India Morning Report: Really, you want BHEL and L&T back – the new bust cycle

  The previous one of course was having to sponsor harmful, noxic ( noxious, toxic and a mouthful of names for the new knowing breed of Indian broker houses) but powerful psu banks even though they were improving on NPAs. This cycle though we have consolidated well, so called speculators find an excuse for misgoverned

Why liquidity should not be banks’ poison (alone)!

Central Banks worldwide, our RBI included are busy providing Reserve Requirement cuts and Emergency liquidity mop ups to ensure inter bank market fluidity and avoid a situation like for Italy and Belgium, Spain and others last November in Europe. The ongoing Euro crisis is not just the cause of this drying up, but in fact

Why liquidity should not be banks’ poison (alone)!

Central Banks worldwide, our RBI included are busy providing Reserve Requirement cuts and Emergency liquidity mop ups to ensure inter bank market fluidity and avoid a situation like for Italy and Belgium, Spain and others last November in Europe.  The ongoing Euro crisis is not just the cause of this drying up, but in fact

Foreign Banks in India: StanChart, Deutsche Bank get new licenses

The bigger foreign banks in the country, SCB and HSBC have not activated new branches since 2009 and hold 94 and 50 branches respectively. Even as equity marets get bullish and a return to expansionaory policy is considered byt he Central bank, rate cuts following ina few months, not many foreign operations are considering a

Foreign Banks in India: India a good FDI destination in 2011

As HSBC , Citi and SCB continue to target large private banking accounts in India they are unlikely to step up price wars in retail as all 3 are struggling to break-even. Others hardly have retail operations at all, Deutsche Bank also having sold its cards division to Indusind. Savings bank rates in the meantime

Foreign Banks in India: Building franchises without savings incentives

As HSBC , Citi and SCB continue to target large private banking accounts in India they are unlikely to step up price wars in retail as all 3 are struggling to break even,. Others hardly have retail operations at all, Deutsche Bank also having sold its cards division to Indusind. Savings bank rates in the

Is HSBC retail competitive enough to keep 6000 jobs? (Foreign Banks in India)

HSBC is one of the strongest franchises in Asia and despite its global mandate of cutting 30,000 jobs in line with saving $3.5 bln and getting Cost income ratios back to below 50%, its staff in Asia has been pretty optimistic and straightforward in its plans to grow in the region. HSBC therefore is probably

The Indian takeover code and Banking M&A

Thoguh the creeping acquisition route in the new takeover code allows holding up to 25% in the acquitree and then making a mandatory open offer, Banks’ experiences with RBI in such acquisitions have been testy and short on discussion. Current and likely future regulations with RBI limit the voting stock in a bank to 5%

HSBC plans for India

Though India is not one of the Top 5 markets for HSBC per its latest Strategy notes, it is still a crown in the Jewel as the bank plans to grow 18 markets in its latest 5 year strategy coinciding with Stuart’s coronation on the island. (Check advantages.us for HSBC strategy series’ with Gulliver, Stuart

What’s up with ING and Deutsche Bank in India?

Even as ABN AMRO gets ready to re-enter India and ANZ is ready to come back to reclaim their territory, the new look branch and retail superstructure created by ING Vysya Bank and Deutsche Bank in India continues to look for higher volume business. ING is listed as a domestic bank while Deutsche Bank is

Stanchart starts spreading the word

Phase II of global MNC strategy in India sems to have started with a clean slate. Bigger players in personal wealth and Private banking space come from the top 3 in India, among Stanchart, HSBC and Cii. Smaller offshore franchises like Socgen do not seem to have growm. Deutsche Bank also planned an aggressive expansion

HSBC Credit Cards up for sale in India too

HSBC credit cards franchises in India are seemingly up for sale. Indus ind had just grabbed the Deutsche Bank franchise in India for $50 mln. Citicards have attrited from 5.8 million customers in 2008 to 3.5 million customers. Indian banks like ICICI Bank and HDFC Bank are holdng at 2.5 million cards each right now.