The bank, following its March 2020 bailout, may have gone overboard in its quest for safety. That may soon change as it looks to acquire a microfinance business with the promise of high returns.
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Mounting concentration risk has forced the fund house to change tack yet again. While shifting focus to small-cap stocks from defensive ones could somewhat help, such frequent switches are less than ideal.
The CEO of the financial services business of the Aditya Birla Group has little to show for her near three years at the helm. That her digital push has turned out to be a dud only makes it worse.
Once considered a panacea for the bank’s troubles, the retail banking segment seems to have become a threat to the private lender’s profitability.